Breakaway Gaps

What makes a breakaway gap stronger than an ordinary gap, how traders handle an entry after one, and what our data says about how often they held.

A breakout with a head start

A breakaway gap is a gap that jumps a stock out of a base or trading range, straight past the breakout level, usually on heavy volume. Instead of creeping over resistance, the stock leaps over it before the market opens. It often reflects a real change in how investors see the company.

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