Bearish Breakaway

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Figure 1.

Figure 1. Bearish Breakaway pattern.

Japanese name: kotsubame tsutsumi
Forecast: bearish reversal
Trend prior to the pattern: uptrend
Opposite pattern: Bullish Breakaway
Number of candle lines: 5

Construction:

  • First candle
    • a tall white candle
  • Second candle
    • a white candle
    • candle opens above the previous closing price (upward price gap, shadows can overlap)
  • Third candle
    • a white or black candle
    • candle opens above the previous opening price
  • Fourth candle
    • a white candle
    • candle closes above the previous closing price
  • Fifth candle
    • a tall black candle
    • candle opens below the previous closing price
    • candle closes below the second line's opening price and above the first line's closing price
    • the price gap formed between the first and the second line is not closed

 

The Bearish Breakaway is a five-line bearish reversal pattern introduced by Greg Morris as the counterpart of the Bullish Breakaway.

Similarly as the bullish variant, there is a price gap formed between the first and the second line.

The fifth last line represents a trend break formed by a long black candle. The opening price is lower than the previous closing price, but the candle closes above the first line closing price, and the gap is not covered. The pattern requires confirmation and one of the following candle should close the price gap.

The Bearish Breakaway appears extremely rarely on the charts. Within 20 years on the S&P500 we found only 23 occurrences.

 

Figure 2.

Figure 2. The Bearish Breakaway is a very rarely appearing pattern, hence it is impossible to calculate any meaningful performance statistics.
Be careful when seeing statements that the pattern is a good and robust performer. We present this pattern here only for the sake of completeness, which is most likely impossible to apply in real life trading.

 

Bearish Breakaway statistics

Below you can find some Bearish Breakaway pattern statistics calculated by CandleScanner software.

Pattern name: Bearish Breakaway
Scanner settings: daily stocks
Group: S&P500
Number of symbols: 502
Date range: 7/1/1995 - 6/30/2015
Time interval: daily candles
Total number of candlesticks: 2,236,421
Number of occurrences (Bearish Breakaway): 23
Number of occurrences (all candlestick patterns): 638,570
% of occurrences (Bearish Breakaway): 0.00 %
Average frequency: 97,235.7
Efficiency statistics (5 candlesticks testing period)

Efficiency NO DATA FALSE LOW MEDIUM HIGH
Number of
Occurrences
0 4 5 6 8
% of
Occurrences
0.00 % 17.39 % 21.74 % 26.09 % 34.78 %

 

Efficiency statistics (10 candlesticks testing period)

Efficiency NO DATA FALSE LOW MEDIUM HIGH
Number of
Occurrences
0 4 3 4 12
% of
Occurrences
0.00 % 17.39 % 13.04 % 17.39 % 52.18 %

 

10 top best performing symbols

Occurrences Statistics 5 candlesticks testing period
(HIGH efficiency)
10 candlesticks testing period
(HIGH efficiency)
Symbol Number of
Occurrences
Average
Frequency
Number of
Occurrences
% of
Occurrences
Number of
Occurrences
% of
Occurrences
AMG 1 4,428.0 1 100.00 % 1 100.00 %
BBT 2 2,517.0 1 50.00 % 2 100.00 %
FFIV 1 4,044.0 1 100.00 % 1 100.00 %
FTI 1 3,532.0 0 0.00 % 1 100.00 %
PCLN 1 4,090.0 1 100.00 % 1 100.00 %
XEC 1 3,213.0 1 100.00 % 1 100.00 %
Pattern name: Bearish Breakaway
Scanner settings: daily stocks
Group: S&P500
Number of symbols: 502
Date range: 7/1/2010 - 6/30/2015
Time interval: daily candles
Total number of candlesticks: 614,034
Number of occurrences (Bearish Breakaway): 2
Number of occurrences (all candlestick patterns): 166,328
% of occurrences (Bearish Breakaway): 0.00 %
Average frequency: 307,017.0
Efficiency statistics (5 candlesticks testing period)

Efficiency NO DATA FALSE LOW MEDIUM HIGH
Number of
Occurrences
0 0 1 1 0
% of
Occurrences
0.00 % 0.00 % 50.00 % 50.00 % 0.00 %

 

Efficiency statistics (10 candlesticks testing period)

Efficiency NO DATA FALSE LOW MEDIUM HIGH
Number of
Occurrences
0 0 0 1 1
% of
Occurrences
0.00 % 0.00 % 0.00 % 50.00 % 50.00 %

 

10 top best performing symbols

Occurrences Statistics 5 candlesticks testing period
(HIGH efficiency)
10 candlesticks testing period
(HIGH efficiency)
Symbol Number of
Occurrences
Average
Frequency
Number of
Occurrences
% of
Occurrences
Number of
Occurrences
% of
Occurrences
FTI 1 1,258.0 0 0.00 % 1 100.00 %

1 Response

  1. I’m glad to see objective descriptions of the candlestick patterns. Indeed making candlestick patterns rankings may be very misleading, especially for the beginners.