Swing Breakout Bearish Pattern

Developed by Definedge.

A Bearish Swing Breakout occurs when a bearish brick gets formed below an immediate previous swing low.

A bearish swing low gets formed when a bullish brick appears after a series of bearish bricks.  If the next series of bearish bricks goes below the low of the immediate previous swing low, and prints one brick below it, the Bearish Swing Breakout is then triggered at that brick.

Please note that a breakout below the immediate previous swing low is necessary to call it a Bearish Swing Breakout. Any swing pivots prior to the most recent one is not considered as a swing breakout.

Prashant Shah introduced this pattern in his book on Renko Charts.

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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.