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Breakaway

 

Description

 

This reversal pattern has a long black candlestick gapping below the first day.

 

For a bullish breakaway, the next two days are a continuation in the same direction with lower closes. The last day is a long white candlestick, closing the gap between the first and second days.

 

The pattern is an indication of a stock gapping down, and although the movement downwards continues, it slows down. The long white candlestick perhaps being a signal of a possible reversal. Confirmation comes if the declining volume of the three middle days have a pickup in volume on the white day.

 

The opposite forms a bearish breakaway.

 

Market Opinion

 

Reversal, possibly to the upside, moderately bullish.

Reversal, possibly to the downside, moderately bearish.

 

Pattern

Bullish:

Description: Description: C:\avasaramworkspace\avasaramWeb\web\tutorials\candlesticks\Breakaway_files\image001.jpg 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Description: Description: C:\avasaramworkspace\avasaramWeb\web\tutorials\candlesticks\Breakaway_files\image002.jpg 

 
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