A gap is one of the most important special trading price bar configurations.
A gap is a major, visible discontinuity between two price bars on a chart.
A breakaway gap is an important event because it almost always marks the start of a new trend.
You interpret a breakaway gap depending on whether it’s upward or downward, according to supply and demand, in the following way:
Some examples of when a breakaway gap may form are an earnings surprise, award of a new government contract, or the possibility of a buyout.
Will the stock continue to rise? We can never know for sure,
But the charts give us some clues as to whether it might be worth entering a trade and riding the trend.