A racing trend gaps once more, runs out of breath on small candles, then a long final candle surges all the way back into the gap and reverses. A five-candle reversal that turns away at the exhausted tail of a move.
The Breakaway is a five-candle reversal pattern.
At the tail of a trend, price first gaps once more in the same direction. But after the second candle the momentum does not hold. The third and fourth candles shrink into small bodies, and the drive to keep going slowly drains away. Then a long opposite-colored fifth candle surges all the way back into the gap, and the direction turns.
The name "Breakaway" comes from the move itself: at the end of a trend, price breaks away from the body of the move with one last gap, then a reversal claws back that entire gapped distance.
How to Read
BINANCE:BTCUSDT
The heart of the pattern lies in two things: the momentum dying out on the third and fourth candles, and the fifth candle surging all the way back into the gap. It runs out of breath on small candles, then claws everything back on one long candle. That gap between slow and fast tells the story of the reversal.
How to Read
BINANCE:BTCUSDT
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