Investor Education Story

Financial Indicator

Macroaxis News
  
By Nathan Young

June 21, 2017

Breakaway investing and trading is when there is a signal that could be indicating a short term trend reversal. There are different types of breakaways, but one of the most seen is the gap up or the gap down, indicating the market is moving quickly and depending on volume, with momentum.

Breakaway

When there is a gap in price, many people believe this is a strong trend reversal, but that does not mean the trend is going to change for the long term. Typically when there is a gap up, people believe the gap will be filled at some point and that can be used as a support level. On the reverse, if the chart gaps down, many may say the chart does not have to fill the gap and this could be a time to watch out for a longer term bearish signal.




Trading these types of chart movements can certainly be risky because in a gap in the chart, volume is typically there is force the movement because there is a huge difference in buyers and sellers from just a few days ago.

The breakaway investor can certainly make money, but that isn’t always the case. People can lose money just as quickly as they get a return on their investment, which means these gap plays can be risky.

Be sure to take a look at examples on the Internet and see how people play breakaway investments and trades, and begin to analyze them and see if it fits your current situation. If you get stuck, reach out to an investing professional and they can help to point you in the right direction. This is not for everyone and the goal is to make a solid return over the long term. Complete research and take your time before jumping into breakaway investing.

Latest Stories

Recently Published Macroaxis Headlines

Opportunities

Explore Investment Opportunities
Build portfolios using Macroaxis predefined set of investing ideas. Many of Macroaxis investing ideas can easily outperform a given market. Ideas can also be optimized per your risk profile before portfolio origination is invoked.
Explore Investing Ideas  

Did you try this?

Run ETF Directory Now
   

ETF Directory

Find actively-traded Exchange Traded Funds (ETF) from around the world
Hide  View All  Next  Launch ETF Directory