Bullish Breakaway Candlestick Pattern
Bullish breakaway is a market reversal candlestick pattern, indicating the end of an existing downtrend and start of a new uptrend (usually short-term reversal). It is a five candlestick pattern which first indicates the acceleration of existing downtrend, then slowing of it and finally the trend reversal.

The requirements of a bullish breakaway candlestick pattern include,
Bullish breakaway candlestick pattern is a moderately reliable candlestick pattern. Reliability can increase with increase in gap, shortening of real-bodies of middle day candlesticks and with increase in trading volume on fifth day. Confirmation of trend reversal can be a gap up, a higher close or a bullish candlestick on sixth day.
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The requirements of a bullish breakaway candlestick pattern include,
- The pattern should form at the bottom of the existing downtrend.
- The first day is a long bearish day characterized by a long black (colored) candlestick.
- The second day candlestick opens a gap below the first candlestick (except in forex charts) and closes at a new low (indicating trend acceleration). The real-body of the candlestick is smaller than first day candlestick.
- The third and fourth day candlesticks are also at the direction of existing downtrend with lower closes than previous candlestick. Third day candlestick can be bearish or bullish.
- On fifth day, there is a long bullish (white/colorless) candlestick, which closes in the gap between first and second day candlestick (except forex charts, where it can close into the real-body of first or second day candlestick).
Bullish breakaway candlestick pattern is a moderately reliable candlestick pattern. Reliability can increase with increase in gap, shortening of real-bodies of middle day candlesticks and with increase in trading volume on fifth day. Confirmation of trend reversal can be a gap up, a higher close or a bullish candlestick on sixth day.
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