As of 08/20/2019
  Indus: 25,962 -173.35 -0.7%  
  Trans: 10,006 -75.35 -0.7%  
  Utils: 834 -1.95 -0.2%  
  Nasdaq: 7,949 -54.25 -0.7%  
  S&P 500: 2,901 -23.14 -0.8%  
YTD
 +11.3%  
 +9.1%  
 +17.0%  
 +19.8%  
 +15.7%  
  Targets    Overview: 08/15/2019  
  Up arrow27,200 or 24,900 by 09/01/2019
  Up arrow10,700 or 9,550 by 09/01/2019
  Up arrow850 or 790 by 09/01/2019
  Up arrow8,200 or 7,400 by 09/01/2019
  Up arrow3,000 or 2,750 by 09/01/2019
As of 08/20/2019
  Indus: 25,962 -173.35 -0.7%  
  Trans: 10,006 -75.35 -0.7%  
  Utils: 834 -1.95 -0.2%  
  Nasdaq: 7,949 -54.25 -0.7%  
  S&P 500: 2,901 -23.14 -0.8%  
YTD
 +11.3%  
 +9.1%  
 +17.0%  
 +19.8%  
 +15.7%  
  Targets    Overview: 08/15/2019  
  Up arrow27,200 or 24,900 by 09/01/2019
  Up arrow10,700 or 9,550 by 09/01/2019
  Up arrow850 or 790 by 09/01/2019
  Up arrow8,200 or 7,400 by 09/01/2019
  Up arrow3,000 or 2,750 by 09/01/2019

Bulkowski's Bullish Breakaway

 

My book, Encyclopedia of Candlestick ChartsEncyclopedia of Candlestick Charts book., pictured on the left, takes an in-depth look at candlesticks, including performance statistics.

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-- Tom Bulkowski

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The bullish breakaway is indeed bullish, unlike some other candlesticks with the bullish moniker. Unfortunately, it acts as a reversal just 59% of the time, which I consider "near random." The candle pattern is also rare. The overall performance is 45 out of 103 candlesticks where 1 is the best performing, so do not expect a long trend after this candle breaks out.

Important Results
Discussion
Identification Guidelines
Example
See Also

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.

The ideal bullish breakaway candlestick
Bullish Breakaway

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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

CharacteristicDiscussion
Number of candle linesFive.
Price trend leading to the patternDownward.
ConfigurationLook 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.

The bullish breakaway candlestick on the daily scale

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?

-- Thomas Bulkowski

Top of page

More

See Also

 

Support this site! Clicking any of the books (below) takes you to Amazon.com. If you buy ANYTHING while there, they pay for the referral.

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Chart Patterns: After the Buy Getting Started in Chart Patterns, Second Edition Trading Basics Fundamental Analysis and Position Trading Swing and Day Trading Visual Guide to Chart Patterns Encyclopedia of Candlestick Charts Encyclopedia of Chart Patterns 2nd Edition Trading Classic Chart Patterns

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