What is the trendline breakdown pattern?
The trendline breakdown is a bearish breakout pattern. Price closes below an ascending trendline fitted to the recent lows, ending the run of higher lows.
How does the trendline breakdown form?
Price closes below a trendline fitted to the recent lows, ending a run of higher lows.
How do you confirm a trendline breakdown?
The line that supported every dip becomes the ceiling on the way back up. Watch whether the retest holds from below.
When does the trendline breakdown fail?
A single close through a long-standing line is weak evidence; the steeper the line, the more easily it is broken by ordinary consolidation.
No chart pattern works every time. The examples on this page were chosen because they show the pattern clearly, and in real markets patterns fail often.
Practice on real charts
3 real examples of the trendline breakdown, cut off where the pattern completed. Make your call, then see what happened.
The shaded area is a trendline breakdown. Where did price go next?
