| breakaway gap In technical analysis, a gap in a chart pattern of price movement indicating a stock price has broken out of a trend on high volume. A breakaway gap is bullish if the price movement is upward and bearish if the price movement is downward. Compare runaway gap. See also exhaustion gap. |   |
Breakaway Gap
In technical analysis, a gap on a chart representing a sudden and large price movement accompanied by high trading volume. Generally speaking, charts do not show breakaway gaps because price movements, even when large, occur smoothly enough to not require a break in the chart. Breakaway gaps may occur, for example, when the price of a security suddenly doubles or halves. As with many charting terms, it may be bullish or bearish; a sudden movement upward is a bullish breakaway gap, while a sudden movement downward is bearish.
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