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Turtle breakout is one of the most popular trading systems. According to the popular turtle trading system, a price dropping below the 20-day low represents a bearish breakout. It is a commonly used breakout method that people use to trade when a price rises above a specified period.
The column in a P&F chart represents a swing move. A column in a P&F chart may contain multiple sessions.
By analyzing price falling below the low of multiple columns, rather than the low of a specific period that we define, the number of sessions will be dynamic and determined by the price pattern.
The turtle beairsh breakout method uses five Os as a default period. There will be multiple sessions in each of the five columns. A turtle breakout method has been incorporated into the P&F chart.
This concept was introduced by Prashant Shah in his book on P&F charts.
Turtle breakouts are very useful price patterns that identify stocks that fall below horizontal distribution patterns. This pattern can be a reversal as well as a continuation.
Click here to learn more about the pattern.
This pattern is useful on Relative strength chart as well. Click here to know more about that.
Click here to know about original Turtle breakout method.
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.