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Breakaway Pattern
Posted By: TradersLog
The Breakaway pattern is a five candle reversal formation that occurs during a trend. The first candle in the formation is long, in the direction of the trend. The second candle is also long gaps away from the first in the direction of the trend. The third candle can be either color, but does not show a change in trend direction. The fourth candle continues in the direction of the preceeding trend. The fifth candlestick has a long body, opens against the trend and continues in that direction to close the gap.
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