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Breakaway

Gap TheoryThe gap theory is short and simple. Not everything needs to be lengthy and laborious. "Everything should be simple as possible, but not any simpler" Break-Away Gap Once a new cycle has begun and you see a breakaway gap in the STARTING of a move, you get confirmation of this new cycle. HOLD. Run-Away Gap Once the trend is continuing for some time and then you see a second gap, this is a confirmation that you are somewhere in the MIDDLE of the move, so you know a further movement in price is expected. HOLD. There is a possibility that you can get multiple runaway gaps. Exhaustion Gap After a move in price had already happened, a gap that signals the END of the move happens. If this is your 3rd gap on the, you should look very closely to distinguish if it is a runaway gap or exhaustion gap. SELL. How do you tell the difference between the exhaustion gap and the runaway gap? Easy, if after the gap happens the price shoot straight up without closing the gap in the next few days ---> runaway gap. HOLD. if after the gap happens the price is closing the gap in the next few days ---> exhaustion gap. SELL. If you like it, follow and like so it will be saved in your saved ideas for future reference.
AMEX:MJEducation
by ZoharCho
5
ZOM - impressive price actionZOM broke out of a 22 months resistence @ 0.50 with a Breakaway Gap on 11 Jan (after some stealth accumulation for 2 months prior). Breakqway gaps occurs at the start of a trend and do not get filled (until one fine day when the stock finally turned bearish). The stock has been trending nicely since, with a bull flag consolidation in the past few weeks before another strong move up yesterday. For those who have yet to stake into this stock, it is difficult to wait for a pullback (which may or not may not happen before it goes much higher). For those who do not mind taking calculated risk, consider to dip your toes in from 1.30-1.50, with initial stop several ticks below yesterday's large candle's low @ 1.16. Position size accordingly to cater for this wide initial stop loss. Near term target of 1.75 (some resistence around here) should be pretty achievable and the longer term, I feel that 2.98 is definitely plausible. Protect profits with trailing stops at pivot lows on the way up! Disclaimer: This is just my own analysis and opinion for discussion and is not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance. Thank you. Feel free to give me your thoughts ! :)
AMEX:ZOMLong
by Juliac
1
Breakaway GapWhen the price opens above a significant resistance area it is known as a Breakaway Gap. This is a bullish signal and indicates the start of a strong trend. Although some would argue that gaps must be filled it is important that we identify what type of gap we are looking at. Breakaway Gaps are usually backed by a positive announcement and in this case it is; PUREgraphite Awarded US$5.57M from the U.S. Department of Energy (DOE) for New Technology Development Price is currently sitting at a major Fibonacci level of %61.8. It is possible that we at a major resistance however a move above this level could indicate that we are likely to reach the next target of 4.75 -BreadCharts
ASX:NVXLong
by BreadCharts
1
What is a price gap? How to trade the price gap?What is a price gap? A price gap appears on the price chart as a blank space, and the blank space represents the time when there was no trading activity in that particular price level. 4 Types of Price Gaps 1. A breakaway gap happens when the security traded in a narrow range for some time, and then the security jumps to a different price level. This indicates interest in the security to test a different price level. 2. A common gap happens because of traders daily buying and selling activity. 3. A continuation gap is a measuring gap to determine if the current trend will continue. 4. An exhaustion gap is a gap that happens toward the end of a trending period. This can be a sign of a price reversal is about to happen. How to trade the price gap? Traders should trade in the direction of the breakaway gap and continuation gap. Traders should consider carefully before adding to their current position when they encounter an exhaustion price gap. What are some of the reasons one may fail to trade the price gap? Possibly due to misinterpreting the exhaustion gap as a continuation gap, and possibly misinterpreting the bull or bear trap as a breakout gap. Possibly it was initially a continuation gap or a breakout gap correctly identified, but suddenly the trend changed direction and trapped the traders. Thank you for reading! Greenfield Remember to click "Like" and "Follow!" Disclosure: Chart interpreted and article prepared by Greenfield. A market idea by Greenfield Analysis LLC for educational material only.
NASDAQ:TSLAEducation
by GreenfieldAnalysis
16
AAL Long, demand zone confirmed and Breakaway GapCondition: 1. False breakout stopped most of the positions bought in the demand zone. 1.1 After big down move 1.2 consolidation in Demand 1.3 Break through the Demand 1.4 One bar down, next bar up, back to the demand zone. 1.5 Higher than previous high 2. Breakaway Gap (G1), down trend line break. Earning Date: 7/30/2020. It will not affect this trading plan. Estimate: Demand zone at $9 could be hold. Entry: 9.5 Stop: 9 Target: 12; risk/reward=1:5 This is a trading school homework. I need few months to practice trading plan. If you like it, thank you for your support. Please use SIM/Demo account to try it, until my trading plans get high winning rate.
NASDAQ:AALLong
by PlanTradePlanMM
The Importance of Gaps in Technical AnalysisThree types of gaps: Breakaway, Runaway or Measuring Gap and Exhaustion Gap. Breakaway gap: 1.At a completion of an important price pattern and generally the breaking of a resistance occurs on a breakaway gap They sign the beginning of a significant market move 2.Breaking of a major trendline, in a reversal signal can also see a breakaway gap 3.They occur on heavy volume 4. Heavier are the volume, less likely the gap will be filled 5.The gap could be filled (generally not all the gap) 6. Upside gap they can work as support areas for subsequent market corrections 7. During an uptrend, it is important that prices do not follow below the gap, otherwise it is a sign of weakness If you are interested in Technical Analysis Theory, please subscribe and watch my Lessons studio.youtube.com
NASDAQ:GOOGEducation
by Mauriello
USO Long, option trade with big stop bufferImportant Note: USO long term target is "0". It is only good for short term trading. If it sounds strange, please google the reason. Existing Condition: 1. Double bottom pattern 2. Breakaway Gap(G1), trend line break. Stock Entry between: open and under 2.80 Stop: 2.2 (down to new low) Target1: 4.2; risk/reward=1:2 Target2: 5; risk/reward=1:3 Prediction: Next Breakaway Gap(G2), next trend line break. In option trade, I bought 2021 Jan Call Butterfly C3/6/9 (Delta 0.26), limit 0.47; Sell P2 (Delta -0.21) Limit 0.46; Total simulate long 47 shares stock for free. Stop below 2. According to Today's oil futures price: (Following futures could be found in Tradingview Futures list. In other platform, the symbol might be different.) Jun (CLM2020) from $13 to $18; Jul (CLN2020) from $18 to $23; DEC (CLZ2020) from $28 to $30; I estimate Oil price will go up from the bottom in June . This is a trading school homework. I need 6 months to practice trading plan. If you like it, thank you for your support. Please use SIM/Demo account to try it, until my trading plans get high winning rate.
AMEX:USOLong
by PlanTradePlanMM