Breakaway Gap

The Breakaway Gap appears when price breaks away from a consolidation area or chart pattern, signaling the start of a new trend.

IsolatedGAPBreakoutBreakaway Gap: Breakout of isolated area → Start new trend

Pattern Details

Category

continuation

Success Rate

71%

Average Move

+15%

Duration

Immediate

Pattern Structure

Pattern Structure
Key components that define this chart pattern
  • 1
    Consolidation area before gap
  • 2
    Large gap breaking resistance/support
  • 3
    Price continues in gap direction

Trading Rules

Trading Rules
Essential rules for trading this pattern successfully
  • Enter position in gap direction
  • Volume must be high on gap
  • Target = Gap width + consolidation area
  • Stop loss within gap area
Trading Tips
  • Gap should not be filled within 3 sessions
  • High volume is mandatory
  • Signals strong trend beginning

Statistics

Breakout Statistics
Bullish Breakout71%
Bearish Breakout71%
Performance Metrics
Average Rise+15%
Average Decline-15%
Pullback Rate12%