Bearish 123 Pullback

Developed at Definedge.

In a down trend, when the price moves back up above the previous bearish swing breakout zone and forms a reversal, it is called a bearish 123 pullback pattern.

1 — Bearish swing breakout at Point B, is followed by at least three bearish bricks
2 — A series of bullish bricks that indicates the price retracing back above the swing low breakout brick at Point 1, without going back above the high of the bearish swing at Point A
3 — Bearish brick reversal

Bearish 123 pullback is a three-leg bearish pullback objective pattern.

Prashant Shah introduced this pattern in his book on Renko charts.

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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.

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