Bullish Breakaway: Important Results
Theoretical performance: Bullish reversal Tested performance: Bullish reversal 59% of the time Frequency rank: 97 Overall performance rank: 45 Best percentage meeting price target: 75% (bear market, down breakout) Best average move in 10 days: -5.79% (bear market, down breakout) Best 10-day performance rank: 12 (bear market, up breakout) All ranks are out of 103 candlestick patterns with the top performer ranking 1. “Best” means the highest rated of the four combinations of bull/bear market, up/down breakouts. The above numbers are based on hundreds of perfect trades. See the glossary for definitions. |  Bullish Breakaway |
Bullish Breakaway: Discussion
The bullish breakaway candle is a rare pattern, rare enough that I did not provide performance statistics in my Encyclopedia of candlestick charts book. As with many multi-line candle patterns, the identification guidelines are stringent, eliminating many that might otherwise qualify. Of course, beauty is in the eye of the beholder (or beer holder), so it is ultimately up to you to decide what qualifies as a bullish breakaway.
The bullish breakaway candlestick acts as a bullish reversal both in theory and in the 41 I found. The overall performance rank is 45, which is mid list. The best average move 10 days after the breakout is a drop of 5.79% in a bear market. I consider moves of 6% or more as good, so I think this pattern performs well, too. However, additional samples might change that assessment. The best 10-day performance rank is 12, which is very good considering 1 is best out of 103 candle patterns.
Bullish Breakaway: Identification Guidelines
| Characteristic | Discussion |
| Number of candle lines | Five. |
| Price trend leading to the pattern | Downward. |
| Configuration | Look for a series of five candles in a downtrend. The first candle is tall and black followed by another black one that opens lower, leaving a gap between the two bodies (but shadows can overlap). The third day is a candle of any color but it should have a lower close. Day four is a black candle with a lower close. The final day is a tall white candle that closes within the body gap of the first two candles. |
Bullish Breakaway: Example
The chart shows a bullish breakaway candlestick on the daily scale. I would like to say that it is a good example, but with a candle pattern as rare as this one, you take any that come along.
Circled in red is a tall black candle that begins the bullish breakaway. Price gaps lower the next day after another black candle appears. Note the gap between the two bodies. Days three and four are candles with lower closes, wrapped up with a white candle that closes within the gap between the bodies of the first two candles.
This candle pattern appears in a downward price trend and it acts as a bullish reversal when price closes above the top of the 5-candle pattern. A downward breakout would be a close below the lowest low in the pattern. Exciting isn’t it?
