123 Pullback – Bullish Pattern

Developed at Definedge.

The 123 bullish pullback pattern is a method of identifying a pullback trade that occurs over 3 swing moves. It is a 5-column pattern.

1 – Double top buy pattern

2 – Column of ‘O’ falls below double top buy pattern level

3 – Positive column reversal (Read pattern description)

It is a method to identify when the retracement falls below the bullish breakout level and price again starts moving up. After the double top buy pattern, there should be a minimum of eight boxes in order to ensure that it was not a weak breakout and that there was a meaningful rise following the breakout. It provides an extremely favorable pullback trade opportunity.

This pattern can be plotted on the chart by adding it from the study menu in TradePoint & RZone. The pattern is also available in the system builder section. By combining this pattern with other patterns and indicators, you can create your own trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.