The Breakaway Bullish is another candlestick pattern listed on our proprietary Cryptohopper Strategy Designer. If selected in the strategy designer, it will help traders catch bullish price reversals and would provide a buy signal.

Breakaway Bullish Pattern

The anatomy of a breakaway bullish pattern is represented by 5 consecutive candlesticks. Where:

  1. The first candlestick has an extensive trading range and is bearish.
  2. The following 3 candlesticks have a smaller trading range.3. Lastly, the fifth candle is bullish, and its trading range is more extensive than the previous 3 candles that close within the body of the first candlestick.
  3. Lastly, the fifth candle is bullish, and its trading range is more extensive than the previous 3 candles that close within the body of the first candlestick.

The fifth candle shows a shift in the supply-demand balance, which indicates that the bulls are starting to reaper in the market. To increase our odds of success, we can combine the Breakaway bullish pattern with a technical indicator like the Parabolic SAR, which will open a buy position if the dots are below the price.

How to Create the Strategy

Step by step guide to creating the strategy using the Breakaway bullish pattern and the Parabolic SAR indicator:

  1. Step#1: select the Breakaway bullish pattern from the Candle Patterns tab.
  2. Step#2: select the Parabolic SAR indicator from the Indicators tab.
  3. Step#3: select the option "necessary signal".
  4. Step#4: select the minimum "buy" signals to 2 out of 2.
  5. Step#5: to close out the position, use another indicator, but make sure you change the signal settings from "buy" to "sell".