Bearish Breakaway

A bearish breakaway is a technical analysis pattern that signals a potential downward trend in a security’s price. It is characterized by a gap in the price chart, followed by a sharp decline in the security’s price. This pattern is often seen in stocks, commodities, and other financial instruments. The bearish breakaway is a bearish reversal pattern, meaning that it signals a potential reversal of an existing uptrend.

History of the Term

The term “bearish breakaway” was first coined by technical analyst Richard Schabacker in his 1932 book, Technical Analysis and Stock Market Profits. Schabacker was one of the first to recognize the importance of chart patterns in predicting future price movements. He identified the bearish breakaway as a reliable indicator of a potential downward trend in a security’s price.

Since then, the bearish breakaway has become a widely used technical analysis tool. It is often used by traders and investors to identify potential opportunities to profit from a security’s downward price movement. The pattern is also used to confirm existing downtrends and to identify potential entry and exit points for trades.

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Summary

The bearish breakaway is a technical analysis pattern that signals a potential downward trend in a security’s price. It is characterized by a gap in the price chart, followed by a sharp decline in the security’s price. This pattern is often used by traders and investors to identify potential opportunities to profit from a security’s downward price movement. For more information about this term, you can visit websites such as Investopedia, The Balance, and TradingView.

See Also

• Bullish Breakaway
• Bearish Continuation
• Bullish Continuation
• Technical Analysis
• Price Chart
• Gap
• Reversal Pattern
• Uptrend
• Downtrend
• TradingView

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