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;
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The second candle is bullish and gaps up from the first one;
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The third and the fourth candles have consecutively higher Close prices, the fourth candle is necessarily bullish;
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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:
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The first candle is long and bearish and continues the downtrend;
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The second candle is bearish and gaps down from the first one;
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The third and the fourth candles have consecutively lower Close prices, the fourth candle is necessarily bearish;
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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.