The Bullish Breakaway is a bullish reversal pattern which occurs during a downtrend.
Characterised as a five-candle pattern, the first candle is a long bearish candle followed by three short middle candlesticks – either bullish or bearish – in which each low is lower than the previous candle. The fifth (and final) candlestick in the pattern is bullish 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. A price gap down between the first and second candle is seen as a confirmation of the Bullish 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 Bullish Breakaway has a reversal accuracy of only approx. 59-percent and therefore a bullish, price gap up or higher close sixth-candle should be used as a trading signal confirmation.