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Nikita (SEBI RA)

9th Oct Β· SEBI-Registered Analyst

Breakaway Pattern – Trend Reversal Setup πŸ”„

πŸ“Š The Breakaway is a 5-candle pattern that can appear as bullish (after downtrend) or bearish (after uptrend). βœ… Bullish Breakaway: 1️⃣ Long red candle. 2️⃣ Gap down with 3 candles trending lower but losing momentum. 5️⃣ Strong green candle closing into the gap β†’ trend reversal. βœ… Bearish Breakaway: 1️⃣ Long green candle. 2️⃣ Gap up with 3 candles moving higher but losing strength. 5️⃣ Strong red candle closing into the gap β†’ reversal to downside. πŸ“Œ Example: Stock in uptrend β‚Ή720 β†’ β‚Ή750, forms gap up, 3 weak greens, then big red closes below midpoint β†’ Bearish Breakaway β†’ trend shift. 🧠 Rule: Rare but highly reliable when seen with volume confirmation.

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