Analyzing Chart Patterns: Bullish and Bearish Breakaway Gaps. http://www.financial-spread-betting.com/course/gaps.html PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE!
Understanding the Breakaway Gap Reversal Chart Pattern. What is a breakaway gap and why is it so powerful? What is a breakaway gap, how is it setup and how can we potentially use it to make money as traders? Most people are familiar with a gap in trading. A breakaway gap is when we have a cluster of price and then all of a sudden we have a gap up in price that causes the start of a new trend. What causes this? It usually happens after a catalyst like news, earnings.. some kind of external influence that reprices this market. So how can we trade this? You can take a trade on the gap (very aggressive) or you could wait a few days to see how price moves (say wait for a pullback)