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.
Descending Channel:
Characterized by lower highs and lower lows, indicating a bearish trend.
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.
Break Down
Indicates a potential reversal or acceleration of a downtrend
Combining channel analysis with other technical indicators can enhance the reliability of trading signals.
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.
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.
It often indicates weakening bullish momentum and is considered a bearish reversal pattern, especially when occurring after an uptrend
Falling Wedge
Characterized by two downward-sloping, converging trend lines, this pattern suggests a potential bullish reversal, particularly when it appears after a downtrend.
It reflects diminishing bearish momentum and the possibility of an upward breakout
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.
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.
Head & Shoulders
Identifies the Head and Shoulders pattern, a bearish reversal formation signaling a potential trend change from bullish to bearish.
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.
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.
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.
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
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
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