Chart Pattern Scanner

A recognizable price formation that predicts future movement. Patterns form because human psychology repeats. They provide entry, stop, and target levels.

The expected price target based on pattern dimensions. For Double Bottom, it's neckline plus pattern height. For flags, it's breakout plus pole length.

Reversal patterns signal trend change (H&S, Double Top). Continuation patterns signal pause then trend continues (Flags, Triangles).

Volume confirms pattern validity. Decreasing volume during formation and expanding volume on breakout validates the pattern. Low volume breaks often fail.

Enter on confirmed breakout - price closing beyond pattern boundary with volume expansion. Can also enter on retest after breakout for better R:R.

Clear structure with proper symmetry, appropriate volume signature (decreasing then expanding), proper duration, visible on trading TF, and favorable context.

When pattern breaks opposite to expected, it creates a strong signal in that direction. Exit original position and consider trading the failure with tight stop.

Wedges have both lines sloping same direction (rising or falling). Triangles have lines converging from opposite directions. Wedges typically reverse, triangles continue.

Check HTF for major patterns and context. Trade patterns on your trading TF. Use LTF for entry timing. Best setups have pattern alignment across TFs.

Measure the cup depth from rim to bottom. Add that distance to the breakout point (handle high). That is the measured move target.

Detect swing points using lookback confirmation. Match swings to pattern templates with tolerances. Score patterns on symmetry, volume, clarity. Rank by score.

Optimize on training period (2 years), test on subsequent out-of-sample (6 months), roll forward and repeat. Validates parameters work on unseen data.

Institutions accumulate/distribute during pattern formation, causing the volume signature. They participate heavily on breakouts. Volume analysis reveals their activity.

Stream price data, incrementally detect swings, run pattern algorithms each bar, track pattern states (forming/complete/active), generate alerts on state changes.

Well-formed patterns with volume: 55-70% win rate depending on type. Measured moves achieved 65-75% of time. Positive expectancy when combined with proper risk management.