Welcome, fellow traders! If you’ve been navigating the financial markets for a while or are just starting your trading journey, you’ve likely come across various trading concepts that promise to enhance your market analysis and trading strategies. One such concept is the ICT Breakaway Gap. In this guide, we’ll delve deep into what ICT Breakaway Gaps are, how to identify them, and why they matter in trading. Whether you’re a novice or an experienced trader, this article aims to break down complex ideas into digestible insights that can be applied in your trading endeavors.
Introduction to ICT Breakaway Gaps
The ICT (Inner Circle Trader) methodology offers a unique perspective on price action and market structure. Among its various concepts, the Breakaway Gap stands out as a pivotal pattern that can signal significant market movements. At its core, an ICT Breakaway Gap is a type of Fair Value Gap (FVG) that remains unfilled as the price moves decisively away from it after breaking a key swing high or low.
Understanding this pattern can be a game-changer. It helps traders anticipate market momentum and position themselves advantageously, potentially leading to more profitable trades. But before we dive into the intricacies of Breakaway Gaps, it’s essential to grasp some foundational concepts.
Essential Concepts to Grasp
To fully appreciate the significance of an ICT Breakaway Gap, you should be familiar with the following terms:
- Fair Value Gap (FVG): A price range where inefficiencies exist due to rapid market movements, leaving a gap between consecutive candles.
- Inversion Fair Value Gap: Occurs when a previous FVG acts oppositely after being broken, serving as support or resistance.
- Breaker Block: A reversal pattern where a previous support or resistance level is breached, and the market continues in that direction.
- Balanced Price Range: An area where buying and selling pressures are equal, often leading to consolidation before a breakout.
What Exactly is an ICT Breakaway Gap?
An ICT Breakaway Gap is essentially a Fair Value Gap that forms after a strong price move and remains unmitigated—meaning the price doesn’t retrace to fill this gap. It’s termed “Breakaway” because, after breaking a significant swing high (in bullish scenarios) or swing low (in bearish scenarios), the price continues to move away without looking back. This behavior indicates strong market momentum, often fueled by institutional participation or significant market events.
Identifying an ICT Breakaway Gap
Spotting a Breakaway Gap in real-time is a skill that can set you apart as a trader. While anyone can see a Breakaway Gap after the fact, the challenge lies in recognizing the signs before the price accelerates away.
Here are steps to identify a Breakaway Gap:
- Look for Strong Price Moves: Identify instances where the price breaks a significant swing high or low with noticeable displacement.
- Identify the Fair Value Gap: After the break, a Fair Value Gap often forms due to the rapid price movement.
- Assess Market Structure: Analyze whether the price is likely to retrace to fill the gap or continue moving away.
- Watch for Confirmation Signals: Utilize tools like Breaker Blocks, Inverse Fair Value Gaps, or Balanced Price Ranges to confirm the likelihood of a Breakaway Gap.
Types of ICT Breakaway Gaps
Breakaway Gaps can be classified based on the direction of the price move:
1. Bullish Breakaway Gap
A Bullish Breakaway Gap occurs when the price breaks above a significant swing high with strong upward momentum, forming a Buy Side Imbalance Sell Side Inefficiency (BISI). In this scenario, the price is expected to continue rising without retracing to fill the gap, indicating robust bullish sentiment.
Why Does the Price Not Retrace?
Several factors can prevent the price from retracing:
- Breaker Block: After breaking the swing high, any retracement may be halted by a Breaker Block, which acts as new support.
- Inverse Fair Value Gap: If the price breaks through a bearish FVG, it can transform into a bullish Inversion FVG, providing further support.
- Balanced Price Range: Overlapping FVGs can create a Balanced Price Range, reinforcing the new support level.

2. Bearish Breakaway Gap
A Bearish Breakaway Gap happens when the price breaks below a significant swing low with strong downward momentum, forming a Sell Side Imbalance Buy Side Inefficiency (SIBI). Here, the price is expected to continue falling without retracing to fill the gap, reflecting strong bearish sentiment.
Why Does the Price Not Retrace?
The reasons mirror those of the bullish scenario but in reverse:
- Breaker Block: The previous support becomes resistance, preventing the price from retracing upward.
- Inverse Fair Value Gap: A bullish FVG broken to the downside can turn into a bearish Inversion FVG, acting as resistance.
- Balanced Price Range: Overlapping FVGs can create a Balanced Price Range, strengthening the resistance level.

Reasons Behind ICT Breakaway Gaps
Understanding why a Breakaway Gap remains unfilled is crucial. Here are the primary reasons:
1. Breaker Blocks
A Breaker Block is a price level that used to act as support or resistance but has been breached, causing a role reversal. In the context of Breakaway Gaps:
- Bullish Scenario: The breaker block forms below the gap, preventing the price from retracing downward.
- Bearish Scenario: The breaker block forms above the gap, stopping the price from retracing upward.
2. Inverse Fair Value Gaps
An Inversion FVG occurs when the price breaks through an existing FVG, causing it to switch roles:
- Bullish Scenario: A bearish FVG broken to the upside becomes a bullish Inversion FVG, providing support.
- Bearish Scenario: A bullish FVG broken to the downside becomes a bearish Inversion FVG, acting as resistance.
3. Balanced Price Ranges
A Balanced Price Range is formed when overlapping FVGs create a zone of equilibrium:
- Bullish Scenario: The overlapping area provides strong support, discouraging retracements.
- Bearish Scenario: The overlapping area acts as robust resistance, preventing upward retracements.
Practical Application in Trading
Incorporating ICT Breakaway Gaps into your trading strategy can enhance your ability to ride strong market trends. Here’s how you can apply this concept:
- Entry Points: Consider entering trades in the direction of the Breakaway Gap after confirming that the price is unlikely to retrace.
- Risk Management: Place stop-loss orders strategically, considering the support and resistance levels provided by Breaker Blocks or Inversion FVGs.
- Trend Confirmation: Use Breakaway Gaps as confirmation of a strong trend, potentially increasing your position size with confidence.
Conclusion
The ICT Breakaway Gap is a powerful concept that, when understood and applied correctly, can significantly improve your trading performance. By recognizing the signs of a Breakaway Gap and understanding the underlying reasons why the price may not retrace to fill the gap, you position yourself to capitalize on strong market movements.
Remember, trading involves continuous learning and adaptation. As you integrate the concept of Breakaway Gaps into your trading toolkit, practice diligent risk management and remain attentive to market dynamics.
Frequently Asked Questions (FAQs)
An unmitigated Fair Value Gap indicates a strong market momentum where the price moves decisively in one direction without retracing to fill the gap. This behavior suggests that institutional players or significant market forces are driving the price, providing traders with an opportunity to join the trend with higher confidence.
Breaker Blocks serve as key support or resistance levels after a significant price break. When a Breaker Block forms, it can halt any retracement attempts, causing the price to continue in its initial direction. This lack of retracement contributes to the Fair Value Gap remaining unfilled, thus forming a Breakaway Gap.
ICT Breakaway Gaps can occur on any time frame; however, their significance increases on higher time frames due to the greater market participation and stronger signals they represent. Traders should consider the time frame in relation to their trading style and objectives when identifying and trading Breakaway Gaps.
The primary difference lies in whether the gap gets filled. A regular Fair Value Gap often sees the price retracing to fill or mitigate the gap, balancing the market inefficiency. In contrast, a Breakaway Gap remains unmitigated as the price continues to move away, indicating strong momentum and a potential continuation of the trend.
Yes, waiting for confirmation is prudent to manage risk effectively. Confirmation can come from various factors, such as:
Price Action: Continuation patterns or rejection at support/resistance levels.
Volume Indicators: Increased trading volume supporting the move.
Additional ICT Concepts: Alignment with other ICT patterns or signals, such as Inversion FVGs or Balanced Price Ranges.