How to identify

1.   A downtrend is under way 2.   The first day is a long black day 3.   The second day is a black day that gaps below the first day 4.   The third and fourth days continue in the direction of the second with lower consecutive closes 5.   The fifth day is a long white day that closes inside the gap caused by the first and second days

The Breakaway bull pattern comes during a downtrend and represents an acceleration of selling to a possible oversold position. The Breakaway bull pattern starts with a long black day then involves a gap in the direction of the trend followed by three consecutively lower price days. All days in this pattern are black with the exception of the third day, which can be either black or white. The three days after the gap are similar to the Three Black Crows bear in that their highs and lows are each consecutively lower. The trend has accelerated with a big gap and then starts to fizzle, but it still moves in the same direction. The slow deterioration of the trend is quite evident from this pattern. Finally, a burst in the opposite direction completely recovers the previous three days' price action. What causes the reversal implication is that the gap has not been filled. A short-term reversal has taken place.

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