What should be the strategy if a breakaway gap does not fill?

A breakaway gap typically occurs at the end of a consolidation phase and can signal a strong price movement in the direction of the gap. When a breakaway gap does not fill, it often indicates continued momentum in the direction of the gap, which can be taken as a confirmation of the prevailing trend. Therefore, entering a trade in the direction of the gap can be a strategic move, as it aligns with the potential for further price movement following the gap.

When the price does not return to fill the gap, it suggests that the buyers or sellers (depending on the direction of the gap) are in control and that there could be an opportunity to capitalize on this momentum. This strategy leverages the idea that unfilled gaps can act as areas of support or resistance, reinforcing the trend rather than opposing it.

The other strategies may not effectively utilize the information presented by the unfilled gap. Closing a position immediately would disregard the potential for trend continuation. Waiting for the gap to fill may result in missing out on significant price movement, as gaps that do not fill quickly can indicate strong trends. Moving the stop loss order closer could be a prudent risk management tactic, but it does not directly capitalize on the opportunity created by the breakaway gap that has not filled