Breakaway Gap

You already know from the Fair Value Gap lesson that an FVG is a three-candle imbalance, and that price often returns to it.

Sometimes it does not. Price leaves the gap behind and keeps moving, and the FVG stays untouched. In this framework, an FVG that remains unmitigated is called a Breakaway Gap.

An FVG is mitigated when price later trades back into the gap. If price never comes back, the FVG is unmitigated. Start with the normal case, an FVG that does get mitigated.

Now the other case. A bullish FVG forms. Price rises away from it. It pulls back a few times, but the pullbacks stop above the gap. The gap is never touched.

Flip everything. A bearish FVG forms, price falls away from it, and the rallies back up stop below the gap.

Same starting FVG, same first candles. The only difference is what price does next.

When an FVG first appears, you cannot tell whether it will be mitigated. Both endings begin identically. You usually need to observe how price behaves afterward.

So a Breakaway Gap is a description of what has happened so far. It remains unmitigated so far. It is a label you can apply later, not a prediction you can make at the start.

Some concepts from earlier lessons are sometimes read alongside a gap that price leaves behind. Treat them as context clues, not guarantees.

No. Many gaps are revisited, and some never are. The Breakaway Gap is the name for the ones that are not. It is associated with strong directional movement, but it is not a rule.

By definition, a Breakaway Gap is a gap price has not come back to. So it is generally not treated as a later entry zone: the whole point is that price moved on without it.

This lesson is about reading and labelling price, not about trade instructions.

Second practice. Another FVG, another ending. Bearish this time.

Anywhere FVGs appear. No timeframe is universally best.