Breakaway Bearish

 

Pattern: Reversal Trend: Bearish Reliability: Moderate

 

How to Identify it

• The first day is a long white day
• The second day is a white day that gaps above the first day
• The third and fourth days continue to in the direction of the second with higher consecutive closes
• The fifth day is a long black day that closes into the gap between the first and second days

What it Means

An uptrend sees a bullish surge that eventually weakens. The result is a long black day that does not close the gap into the body of the first day. This suggests a short-term reversal.