Stock Diamond - Technical Analysis Education

Bearish Breakaway

Reliability Rating: Moderate

This is a multiple day pattern. It starts with an established uptrend. On the second day the stock gaps up with a smaller white candles. On day 3 and 4 the candles are small but closing upward. On the last day of the pattern a large black candle is formed.

In this pattern, day 4 in not necessary, an equally valid pattern is where days 1,2,3, and 5 occur. This only shows the potential for a short term breakout and does not give indication about the strength of the breakout.