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Bearish Breakaway



This pattern signals a trend...

How to identify...

Similar pattern(s)...

Reversal

  1. 1st day is a long white day.
  2. 2nd day is a white day whose body gaps up.
  3. 3rd & 4th days close higher each day.
  4. 5th day is a long black day that closes inside the gap created by the 1st and 2nd days.
  • none

Psychology...

The up trend is accelerated by a gap up. The next few days trend up, however start to run out of steam. The last day of the formation shows a breakdown and close below the previous 3 days, however the gap created on the 1st day remains unfilled. Since the gap is not filled and the trend is obviously deteriorating, this implies the reversal signal.