Oops pattern is a combination of support and resistance patterns. See below image.
‘O’ at same level indicates support. But it is possible that price will continue to fall further and trigger a bearish breakout pattern. If column reverses to ‘X’ from these levels, then we know that the support is level is respected.
Practically, we have seen that price doesn’t always turn from same levels. It will breach the low, generate double-bottom sell pattern and then reverse. The pattern is known as Bullish weak breakout pattern (Explained in the book Trading the markets Point & Figure way).
Another possibility is - price reverses near from support levels.
How to define near? – Let’s decide a range. From 2-box above previous ‘O’ can be considered as support pattern.
All these possibilities are considered in OOPS patterns. OOPS support pattern plots the price patterns those are reversed from previous support and resistance levels. Default range value is 2. So, it will consider price patterns reversed from 2 box above or below the previous support or resistance level. User can experiment with the parameter.
Vice versa for Bearish OOPS pattern. They show the candidates reversed from previous peaks.
How to scan OOPS pattern?
I want to look for this pattern on any of the important box-value.
Go to Matrix -> P&F System Matrix Select OOPS Bullish Support pattern condition in all box-values.
Select the group of stocks and scan.
In the output section, the score will be 1 if pattern is qualified on that box-value. Sort the total score column and look for candidates having score of 1 and above. Ignore the remark column.
Now you have list of stocks qualifying for the pattern on any of the chosen box-values. You can save them in a group and run other systems such as Relative strength or Matrix on that group.
Now we can open the charts qualified for the pattern and look for other patterns in different box-values.
‘O’ at same level followed by positive column reversal is a part of bullish OOPS pattern. But ‘O’ at same level on higher box-value is an important observation, it tells us that price is trading near important support level. What if I also want to consider that pattern for higher box-value in scanner itself?
Go to Back-testing -> System Builder -> P&F charts Select patterns:
‘O’ at same level and
OOPS bullish support pattern Write in Expression: 1 or 2.
Save the system builder and go to P&F System matrix.
Select ‘OOPS or O’ system on higher box-values.
Look for stocks having score 1 and above. Understood? Vice versa for bearish stocks.
How about combining other patterns in the P&F system matrix in this way? There are many possibilities, think and explore.
These tools are unique and interesting having great potential. Sincere approach and creativity can make you benefit tremendously by using them.
If you need help to set those scanners or understand them more, our supportteam is more than happy to talk to you.