Follow through -Bullish

Developed at Definedge.

With this method, basic top buy bullish breakout patterns of P&F charts can be made powerful.

A basic top buy pattern followed after a significant bullish pattern provides confirmation to the major patterns. It is not an ordinary bullish breakout pattern because it has occurred after a major bullish pattern. It helps in filtering multiple stocks where bullish double top buy pattern has got triggered and it also confirms the bullishness of the major pattern that has got formed.

Price retraces after the bullish major pattern breakout, followed by a bullish double top buy signal, confirming the bullish environment and the weakness of bears. It offers the bullish trade opportunity and the initial risk can be defined by deciding on the number of boxes in the column of ‘O’ before the breakout.

This pattern and concept are introduced in the P&F book by Prashant Shah.

Click here to read more about the pattern.

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.