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Finance: What is Breakaway Gap? 7 Views
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Description:
What is a Breakaway Gap? A breakaway gap is the point in time when a stock price changes direction (it goes from increasing to decreasing or vice versa). After this happens, lots of trading occurs depending upon the direction of the price.
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Transcript
- 00:00
Finance a la shmoop.. what is breakaway gap? well Letterman has one yeah that but [David Letterman's front teeth appear]
- 00:09
here we're talking about a trading pattern like on a stock chart like this
- 00:13
thing where the breakaway gap is a sudden change in trading pattern like
- 00:18
you're walking along just fine and easily recognized in comfy double bottom
- 00:22
pattern like this but then blam the company reports an awesome quarter in [Stock chart dramatically rises]
Full Transcript
- 00:27
the stock zooms upward outside of the pattern it goes from here to here and
- 00:32
well now what like there's no pattern yet so what do we do well depending on
- 00:36
your lean prayer might help is the stock heading down now to normalize or up more
- 00:42
because now everyone thinks it's the next Google and wants to own it for the
- 00:46
long run so breakaways go up like this and
- 00:49
sometimes they go down like this but either way they break away from a [Arrow points to stock charts breakaway gap]
- 00:54
pattern and yeah, clearly this was not the next Google! oh well
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