X Below n Percent of prev col

You can use this pattern condition to define the retracement of a column of ‘O’ to its previous column of ‘X’.

N is a retracement percentage in ‘O’ in this pattern. You can define the retracement percentage. As an example, if you decide on 50% retracement and run the scanner on this stock, it will show candidates who have returned more than 50% to their previous swing in the current column. It helps you to identify deep retracement candidates.

When the retracement in the current column of ‘X’ is less than the previous swing, it indicates bearishness. Defining it in terms of percentage rather than absolute helps us scan stocks. Number of boxes in the previous column of various stocks is not known, it could be 10, 20, 50, 100 or anything else. Defining retracement in terms of percentage would help here.

With the help of a system builder, you can also design various patterns and strategies.

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.