Shakeout Bullish

Developed at Definedge.

Bullish shakeout is a four-line pattern of the Line-break chart.

Trends are not linear and they keep shaking out the weak traders even when overall trend is strong.

Bullish shakeout is basically a formation of single line against the trend and then resumption of previous trend. It shakes out the weak traders hence the name.

In bullish shakeout pattern, previous line is bearish in the series of four bullish lines.

The pattern gets completed only when trend is resumed hence a Bullish Shakeout is confirmed only when Bullish line is formed.

Prashant Shah introduced this concept in a research paper, and his book on the Line-break charts can be found on the Definedge Shelf.

Click here to know more about the pattern.

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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