Positive Column Reversal

As soon as the column of ‘O’ is turned into an ‘X’, it becomes a positive column reversal pattern.

The number of boxes in column of ‘X’ depends on the reversal criteria defined by the user. On a 3-box reversal chart, a minimum of 3 boxes will appear in column ‘X’, and the positive column reversal pattern is considered to exist when 3 boxes appear.

It shows that the trend has changed from down to up. This pattern gains more importance when higher box-values are used.

When the overall chart pattern is bullish, this pattern can help plan low risk trade opportunities. It can also be useful while using multi-box value P&F system matrix.

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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.