Breakaway

 

Description

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.

Input Parameters

Parameter Description
length The number of candles used to calculate the average body height. If the body height of a candle exceeds this average, it is considered long.
trend setup The number of preceding candles to check if the trend exists.

Plots

Plot Description
Bearish The bearish Breakaway candlestick pattern.
Bullish The bullish Breakaway candlestick pattern.


For educational purposes only. Not a recommendation of a specific security or investment strategy.
Technical analysis is not recommended as a sole means of investment research.
Past performance of a security or strategy does not guarantee future results or success.