Expanding Bullish

Developed by Definedge.

Bullish Expanding is a four-line reversal pattern of the Line Break chart.

A series of alternative lines where the last line is bullish constitutes a Bullish Expanding pattern.

This is a rather interesting pattern in the Line Break charts. Three-line break expanding pattern is a complex series of four lines.

These are not very common patterns in terms of occurrences and suggests indecision among participants that is resulting in a price noise. They are named expanding because subsequent lines make new highs and lows so the patterns looks like traditional expanding formation. Expanding is a difficult phase for trend following methods.

Prashant Shah introduced this concept in a research paper and his book on the Line Break Charts by Prashant Shah, available for free on Shelf.

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This pattern can be plotted on the chart by adding it from the Add study menu in TradePoint & Patterns in 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.