ShmoopTube

Where Monty Python meets your 10th grade teacher.

Search Thousands of Shmoop Videos


IPO Videos 120 videos

Finance: What are Capital Markets?
7 Views

What are Capital Markets? The most often context used for “Capital Markets” is in corporate finance and investment banking, and it refers prima...

Finance: What are Overbought and oversold?
1 Views

What are overbought and oversold? Hit play to find out.

Finance: What is Selling Away?
8 Views

Selling away is the practice of selling securities that aren't under the seller's auspices to sell.

See All

Finance: What is Breakaway Gap? 7 Views


Share It!


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.

Language:
English Language

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]

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

Related Videos

GED Social Studies 1.1 Civics and Government
39794 Views

GED Social Studies 1.1 Civics and Government

Fake News
11938 Views

How do you tell fake news from real news?

Finance: What is Bankruptcy?
260 Views

What is bankruptcy? Deadbeats who can't pay their bills declare bankruptcy. Either they borrowed too much money, or the business fell apart. They t...

Finance: What is a Dividend?
1777 Views

What's a dividend? At will, the board of directors can pay a dividend on common stock. Usually, that payout is some percentage less than 100 of ear...

Finance: How Are Risks and Rewards Related?
589 Views

How are risk and reward related? Take more risk, expect more reward. A lottery ticket might be worth a billion dollars, but if the odds are one in...