# Chart Patterns
The **Chart Patterns** section in the **Market Core Toolkit** offers advanced tools for recognizing and leveraging channels and wedges, two fundamental patterns in technical analysis.
Designed to enhance trading precision, this feature helps traders identify trend continuation or reversal opportunities through breakout signals, customizable settings, and adaptive calculations for various market conditions.
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### 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.
Ascending Channel
**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.
**Breakout Above Resistance**: Suggests a continuation or acceleration of an uptrend.
Break Up
**Breakdown Below Support**: Indicates a potential reversal or acceleration of a downtrend
Break Down
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Combining channel analysis with other technical indicators can enhance the reliability of trading signals.
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### **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
Rising Wedge
**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
Falling Wedge
The pattern is highlighted on the chart with shaded areas and angled support/resistance lines, helping traders quickly identify breakout zones and manage risk effectively.
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### 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.
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### Settings
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### Settings
This section provides full control over the detection and visualization of chart patterns, including **Channels**, **Wedges**, and **Head & Shoulders**. Each pattern type has its own toggle and configuration options.
1. **Pattern Toggles**
Each row begins with a checkbox to enable or disable detection of the corresponding pattern:
* **Channels**
* **Wedges**
* **Head & Shoulders**
Only enabled patterns will be scanned and plotted on the chart.
2. **Color Customization**
Each pattern supports two color selections:
* **Bullish Color** – Used to highlight bullish formations (e.g., upward channels or inverse head & shoulders).
* **Bearish Color** – Used for bearish formations (e.g., downward wedges or standard head & shoulders).
An optional third color slot may appear for additional styling (e.g., border or background fill).
3. **Calculation Period**
A numeric field is provided for each pattern to define its lookback period:
* This value determines how many historical bars are analyzed for pattern formation.
* Shorter periods will focus on recent, smaller structures, while longer periods help identify broader patterns.
4. **Line Thickness** – Available for **Channels** and **Wedges**. Options include Small, Medium, or Large to define how thick the plotted lines appear on the chart.
5. **Detection Threshold** – Applies only to the **Head & Shoulders** pattern. This numeric value controls the pattern’s sensitivity:
Lower values (e.g., 0.3) make the detection more selective.
Higher values increase tolerance and allow more potential matches.
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