Description : PATTERNS
Candlestick patterns - Bearish and Bullish
>> "BreakAway"
Breakaway is a trend reversal candlestick pattern consisting of five candles.
Depending on their heights and collocation, a short-term bullish or bearish trend reversal can be predicted.
The bearish Breakaway is recognized if:
> The first candle is long and bullish and continues the uptrend;
> The second candle is bullish and gaps up from the first one;
> The third and the fourth candles have consecutively higher Close prices, the fourth candle is necessarily bullish;
> The fifth candle is long and bearish; its Close price is in the gap between the first and the second candles.
The bullish Breakaway is recognized if:
> The first candle is long and bearish and continues the downtrend;
> The second candle is bearish and gaps down from the first one;
> The third and the fourth candles have consecutively lower Close prices, the fourth candle is necessarily bearish;
> The fifth candle is long and bullish; its Close price is in the gap between the first and the second candles.
Example: