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Thread: Strike-back Pattern
P&F pattern explained via images.
P&F pattern explained via images.
See below image.
Price went below its previous swing low. It is a bearish breakout.
Price went below its previous swing low. It is a bearish breakout.
Price going below its previous low is a double bottom sell pattern in P&F charts.
Pattern is bearish. People who were looking at previous low as support are in trouble. Bears are dominating.
Imagine, bulls strike back and take price above previous low. See the image.
Imagine, bulls strike back and take price above previous low. See the image.
Price above bearish breakout level. Bears are in a difficult situation now, they seem trapped. The breakout was temporary, if that demand level at the swing low is strong, there is a possibility of strong bullish move from here.
In P&F, ‘X’ is back!
In P&F, ‘X’ is back!
This is bullish, but we need more confirmation. There is a tussle between bulls and bears at this point. If demand is not strong around current levels, price will fall and break previous low.
Previous low is a test of bulls.
Previous low is a test of bulls.
Imagine price corrects from there. If bulls hold previous bottom, they are here to stay.
In P&F terminology, there should not be a double bottom sell.
If price maintains the bottom and goes above the previous high, it is a bullish strike-back pattern.
See below image.
See below image.
We can make it completely objective using P&F, see below image of Bullish strike-back pattern.
Opposite is bearish strike-back pattern. Below image explains it.
Using P&F, pattern became objective. We can scan for it, back-test and create systems for it by using it along with other patterns and indicators.
If I run a scanner in EOD segment today on 0.25% box-value, SBILIFE is one of the candidates.
If I run a scanner in EOD segment today on 0.25% box-value, SBILIFE is one of the candidates.
A = bearish breakout. B = bulls managed to bounce. C = bottom of A was protected. D = bullish strike-back.
Pattern fails if price falls below bottom of C.
Pattern fails if price falls below bottom of C.
Sorry for the bad drawing 
. It is like bears laughed, bulls smiled and attacked. They can prove dangerous!
Story was to explain the concept.
. It is like bears laughed, bulls smiled and attacked. They can prove dangerous!Story was to explain the concept.
Attempt is to explain the concept and how it was designed on P&F. Idea is to take advantage of important properties of different methods. I seek objectivity so that focus can be shifted to execution while trading. <End>
