Shakeout Bullish

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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 the 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 the Bullish Shakeout pattern, the 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 a bullish line is formed.

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.