Stock Diamond - Technical Analysis Education

Bullish Breakaway

Reliability Rating: Moderate

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