Bullish 123 Pullback

Developed at Definedge.

During an uptrend, if the price retraces below the previous bullish swing breakout zone and then forms a reversal, it is a bullish 123 pullback pattern.

1 — Bullish swing breakout at Point B is followed by at least three bullish bricks

2 — A series of bearish bricks indicating the price retracing back below the swing high breakout point at Point 1 but not falling below the low of the bullish swing at Point A

3 — Bullish brick reversal.

Bullish 123 pullback is a three-leg bullish 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.