> For the complete documentation index, see [llms.txt](https://docs.bigbeluga.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.bigbeluga.com/main-toolkits/market-core-pro-tm/chart-patterns.md).

# Chart Patterns

The **Chart Patterns** in the **Market Core Toolkit** offers advanced tools for recognizing and leveraging channels and wedges, two fundamental patterns in technical analysis. 

## Channels

The **Channels and Breakouts** feature helps traders spot price consolidation phases and prepare for potential explosive moves. 

Channels are drawn automatically by connecting local highs and lows into parallel trendlines, forming a defined trading range.

### **Ascending Channel**: 

Characterized by higher highs and higher lows, indicating a bullish trend.

<figure><img src="/files/Ywt4LE7uooeMNXwy5Iyp" alt=""><figcaption><p><strong>Ascending Channel</strong></p></figcaption></figure>

### **Descending Channel**:&#x20;

Characterized by lower highs and lower lows, indicating a bearish trend.

<figure><img src="/files/5NbNwSmc56pjVbzu3lpa" alt=""><figcaption></figcaption></figure>

## **Breakouts**

A breakout occurs when the price moves beyond the established channel boundaries, signaling a potential shift in trend.

### **Break Up**

Suggests a continuation or acceleration of an uptrend.

<figure><img src="/files/foicP1o5MEg4Oz7mZQOE" alt=""><figcaption><p>Break Up</p></figcaption></figure>

### **Break Down**&#x20;

Indicates a potential reversal or acceleration of a downtrend

<figure><img src="/files/vyXL26cwBoQb5JCAaPf4" alt=""><figcaption></figcaption></figure>

{% hint style="info" %}
Combining channel analysis with other technical indicators can enhance the reliability of trading signals.
{% endhint %}

## **Channel Targets**

Instead of guessing where the breakout momentum will exhaust, the system projects a precise target based on the full vertical height of the channel.&#x20;

<figure><img src="/files/K0kljoGWKqfynXB6LLhG" alt=""><figcaption></figcaption></figure>

The moment a BreakUp or BreakDn signal is validated at the channel boundary, a vertical measurement line is generated from the breakout point, casting the exact destination directly onto your chart.

## **Wedges**

The **Wedges** feature automatically detects two key chart patterns — **Rising Wedge** and **Falling Wedge** — which are commonly used in technical analysis to anticipate potential price reversals or continuations.

### **Rising Wedge**

This pattern forms when price action is confined within two upward-sloping, converging trend lines.&#x20;

<figure><img src="/files/ugkuSfRwHnugqjkArQYR" alt=""><figcaption><p>Rising Wedge</p></figcaption></figure>

{% hint style="info" %}
It often indicates weakening bullish momentum and is considered a bearish reversal pattern, especially when occurring after an uptrend
{% endhint %}

### **Falling Wedge**

Characterized by two downward-sloping, converging trend lines, this pattern suggests a potential bullish reversal, particularly when it appears after a downtrend.&#x20;

<figure><img src="/files/iETzV0wJlh672b2WJIFS" alt=""><figcaption><p>Falling Wedge</p></figcaption></figure>

{% hint style="info" %}
It reflects diminishing bearish momentum and the possibility of an upward breakout
{% endhint %}

## **Wedges Targets**

Instead of guessing where the breakout momentum will exhaust, the system projects a precise target based on the dynamic vertical height of the range.&#x20;

<figure><img src="/files/7UpsdprSsf28YLceLw6p" alt=""><figcaption></figcaption></figure>

{% hint style="info" %}
Treat these automated channel targets as your primary target zones or key areas to trail your stop-loss closely, as price will frequently face heavy institutional reactions or profit-taking upon reaching them.
{% endhint %}

## Head & Shoulders

Identifies the **Head and Shoulders** pattern, a **bearish reversal** formation signaling a potential trend change from bullish to bearish.

<figure><img src="/files/Gj7MTVd7HwBL3g7DuyQW" alt=""><figcaption></figcaption></figure>

The pattern consists of three peaks:

* **Left Shoulder (LS)** – A price rise followed by a pullback.
* **Head** – A higher peak forming the highest point of the pattern.
* **Right Shoulder (RS)** – A lower peak, similar to the left shoulder, indicating weakening momentum.

## Trend Lines & Breakout Signals

The Trend Lines feature automatically maps critical trend boundaries by connecting major structural highs or lows, delivering real-time breakout signals when the price decisively violates these lines.

<figure><img src="/files/dSi3KoDm20HGpLPG6HQD" alt=""><figcaption></figcaption></figure>

#### **How It Works**

* Solid Trend Lines: The indicator automatically identifies and draws a solid line connecting two or more prominent local highs (resistance trend lines) or local lows (support trend lines).
* Dashed Line Extensions: Once the initial trend line is formed, a dashed line projects forward into space. This serves as a live, tracking extension line that market participants are watching.

<figure><img src="/files/LSpkVWZeqGaPCmmSC0Es" alt=""><figcaption></figcaption></figure>

* Breakout Triggers: The exact moment price action crosses and breaks past the dashed extension line, a dynamic real-time signal is plotted on your chart.

<figure><img src="/files/ezGash4MUIONRlImfNu3" alt=""><figcaption></figcaption></figure>

### **Signal Classification**

The system differentiates between standard and high-momentum breakouts, labeling them based on the volume and velocity of the breaking candle:

| **Signal Label**     | **Type**              | **Description**                                                                                                         |
| -------------------- | --------------------- | ----------------------------------------------------------------------------------------------------------------------- |
| ▲ Break Up           | Standard Bullish      | Plotted when price closes cleanly above a resistance trend line extension.                                              |
| ▲+ Strong Break Up   | High-Momentum Bullish | Plotted with a `+` sign when a breakout occurs with exceptional volume, signaling a highly reliable trend acceleration. |
| ▼ Break Down         | Standard Bearish      | Plotted when price closes cleanly below a support trend line extension.                                                 |
| ▼+ Strong Break Down | High-Momentum Bearish | Plotted with a `+` sign when a breakdown occurs with heavy selling pressure, indicating strong continuation downside.   |

##

## Settings

<div align="left" data-with-frame="true"><figure><img src="/files/a2f66tRGVnUubnvnmc6T" alt="" width="563"><figcaption></figcaption></figure></div>

| Setting          | Color Customization                     | Display / Filter Dropdown                                         | Additional Options / Targets                                      |
| ---------------- | --------------------------------------- | ----------------------------------------------------------------- | ----------------------------------------------------------------- |
| Channels         | Support / Resistance /  Background Fill | Select period of calculation Dropdown: `Small` / `Medium` / `Big` | ☑️ Targets (Take Profit Levels)                                   |
| Wedges           | Support / Resistance /  Background Fill | Select period of calculation Dropdown: `Small` / `Medium` / `Big` | ☑️ Targets (Take Profit Levels)                                   |
| Head & Shoulders | Baseline / Labels Structure             | Select period of calculation Dropdown: `Small` / `Medium` / `Big` | Threshold input % (e.g., `3`)                                     |
| TrendLines       | Support / Resistance                    | Dropdown: `All` / `Support` / `Resistance`                        | Select period of calculation Dropdown: `Small` / `Medium` / `Big` |