This is a good indication of continued downward pressure
A breakaway gap occurs when the price of a stock or other asset opens significantly higher or lower than the previous trading session's close, often on high volume. This typically signals a strong shift in market sentiment and the beginning of a new trend. Investors and traders might consider selling during a breakaway gap for several reasons:
Taking Profits: If the breakaway gap occurs after a significant uptrend, it might be an opportune moment to lock in profits. The surge in price could be an indicator that the stock is overbought, and a correction might follow.
A breakaway gap occurs when the price of a stock or other asset opens significantly higher or lower than the previous trading session's close, often on high volume. This typically signals a strong shift in market sentiment and the beginning of a new trend. Investors and traders might consider selling during a breakaway gap for several reasons:
Taking Profits: If the breakaway gap occurs after a significant uptrend, it might be an opportune moment to lock in profits. The surge in price could be an indicator that the stock is overbought, and a correction might follow.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.