Close below previous n bars

This pattern is characterized by the closing price of the candle being lower than the low price of the previous n bars. A period of n bars can be defined by the user.

Please note that the heikin-ashi candle does not represent the actual closing price of the session. The closing price is the average of the open, high, low, and closing prices of that session. In this pattern, candidates will be identified whose average of the four prices is less than the low price of the previous n candles.

The condition is bearish and can be useful for scanning stocks.

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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