September 14th, 2011 
admin What Does Breakaway Gap Mean?
A term used in technical analysis. A breakaway gap represents a gap in the movement of a stock price supported by levels of high volume. It occurs when prices break away from an area of congestion. When the price is breaking away from a triangle (Ascending or Descending) with a gap then it can be implied that change in sentiment is strong and coming move will be powerful. One must keep an eye on the volume. If it is heavy after the gap is formed then there is a good chance that market does not return to fill the gap. When the price is breaking away on a low volume, there is a possibility that the gap will be filled before prices resume their trend.
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