Breakaway Bearish

The Bearish Breakaway is a bearish reversal pattern which occurs during an uptrend.

Characterised as a five-candle pattern, the first candle is a long bullish candle followed by three short middle candlesticks – either bullish or bearish – in which each high is higher than the previous candle. The fifth (and final) candlestick in the pattern is bearish indicating a short-term price reversal which – according the patterns theory – must close the price gap formed by the first and second candles in the pattern. The price gap up between the first and second candle is seen as a confirmation of the Bearish Breakaway pattern.

Considered a very rare candlestick pattern to find in price action – primarily due to the large number of candles which make-up the pattern – Bulkowski suggests the Bearish Breakaway has a reversal accuracy of only approx. 63-percent and therefore a bearish, price gap down or lower close sixth-candle should be used as a trading signal confirmation.