Low below previous bars

In this pattern, the low price of the current Heikin-Ashi candle is 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 low price of Heikin-Ashi differs slightly from the candlestick patterns. In the case of Heikin-Ashi candles, the low price is the minimum price of the actual low, the open of the Heikin-Ashi candle (average of the previous body) or the close of the Heikin-Ashi candle (average of the current OHLC).

A bearish breakout occurs when the low of the current candle falls below the low of the previous n candles.

It is a bearish condition that can be useful when scanning stocks.

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.