• Describes a chart and asks "what pattern is this?"
• Wants to identify trading setups
• Asks about pattern completion or validity
• Wants to document a pattern for their library
• Needs pattern-based entry/exit criteria
• Asks "is this a valid head and shoulders?"
• Wants to learn pattern characteristics

• Forms after uptrend
• Neckline connects lows between shoulders
• Volume typically decreases at head, increases on breakdown

• Enter short on break below neckline
• Wait for retest of neckline (optional, conservative)

• Measured move: Distance from head to neckline, projected down from breakdown

• Price breaks above right shoulder high

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• Clear uptrend preceding pattern
• Three distinct peaks (left shoulder, head, right shoulder)
• Head is highest point
• Neckline can be drawn connecting lows
• Volume decreasing from left shoulder to right shoulder

• Break below neckline with volume increase
• Conservative: Wait for retest of neckline as resistance

• Above right shoulder high

• T1: Measured move (head to neckline distance)
• T2: Major support below

• Stronger when neckline slopes down
• Watch for volume confirmation on breakdown

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• Forms after downtrend
• Bullish reversal pattern
• Volume increases on breakout above neckline

• Forms after uptrend
• Two failed attempts to break higher
• Neckline at the low between peaks

• Forms after downtrend
• Bullish reversal
• Entry on break above neckline (high between bottoms)

• Stronger than double tops/bottoms (more tests = stronger level)
• Requires more time to form
• Entry and target same as double patterns

• Flagpole: Sharp price increase with volume
• Flag: Downward sloping or horizontal consolidation, low volume
• Duration: Typically 1-4 weeks (daily chart)

• Break above flag upper trendline
• Volume confirmation

• Flagpole length projected from breakout point

• Break below flag lower trendline

• Flagpole: Sharp decline
• Flag: Upward sloping or horizontal consolidation
• Entry on break below flag

• Converging trendlines
• Shorter duration than flags (1-3 weeks)
• Continuation of prior trend expected

• Typically bullish (breaks upward ~70% of time)
• Shows buyers increasingly willing to pay higher prices
• Resistance level being tested multiple times

• Typically bearish
• Shows sellers increasingly aggressive
• Support being tested repeatedly

• Neutral pattern (can break either way)
• Decreasing volatility
• Usually breaks in direction of prior trend

• Most reliable continuation pattern
• Old resistance becomes new support (or vice versa)
• Volume on initial breakout, lighter volume on retest

• Enter on retest of broken level
• Or enter on continuation after successful retest

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• Clear resistance/support level identified
• Breakout with volume increase
• Price pulls back to test broken level
• Retest holds (candlestick confirmation)
• Volume lower on retest than breakout

1. Aggressive: On breakout
2. Conservative: After successful retest (preferred)
3. Confirmation: Small position on breakout, add on retest

• Below retest low (bullish)
• Above retest high (bearish)

• Next major S/R level
• Measured move (prior range)

• Higher success rate when higher timeframe aligned
• Failed retests can be traded opposite direction

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• Breakout lacks volume or conviction
• Quickly reverses back into range
• Often traps breakout traders (provides liquidity for reversal)

• Enter when price moves back into range
• Confirmation: Close back inside range

• Level that previously held as support
• Price breaks below, level now acts as resistance
• Short when price rallies back to test it

• Series of HH and HL
• Entry on pullback to HL (support)
• Invalidation if price makes lower low

• At tops: Potential reversal
• At bottoms: Potential reversal
• In range: Continued indecision
• Requires confirmation from next candle

• Provides the "big picture"
• HTF patterns more significant than LTF patterns
• Align trades with HTF patterns for higher success

• Use for precise entry within HTF pattern
• Confirm HTF pattern with LTF pattern

Daily Chart: Ascending triangle forming (bullish)
4H Chart: Bull flag within the triangle (continuation setup)
1H Chart: Breakout retest on 1H provides entry

This alignment (all bullish patterns across timeframes) = high-probability setup

• [Market condition requirement]
• [Trend requirement]
• [Volume characteristic]

• [Specific element 1]
• [Specific element 2]
• [Specific element 3]

• [What confirms pattern validity]

1. Aggressive: [Description]
2. Conservative: [Description]

• [Condition 1]
• [Condition 2]

• Date: [Date]
• Instrument: [Asset]
• Entry: [Price]
• Stop: [Price]
• Exit: [Price]
• R:R: [Ratio]
• Lesson: [What went well]

• Date: [Date]
• Instrument: [Asset]
• Entry: [Price]
• Stop: [Price]
• Exit: [Price]
• Lesson: [What to avoid next time]

• Pattern fully formed
• Entry criteria met
• Stop loss identified
• Risk acceptable (1% or less)
• Targets identified
• Higher timeframe aligned
• No major news events pending

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1. Ask for key details:
   • What timeframe?
   • What was the prior trend?
   • Where is price now?
   • Volume characteristics?
2. Identify the pattern:
   • Match description to known patterns
   • Verify all pattern elements present
   • Assess pattern quality/validity
3. Provide trading plan:
   • Entry trigger
   • Stop loss placement
   • Profit targets
   • Invalidation level
4. Document (optional):
   • Use Write tool to add to user's pattern library (e.g.,

     patterns/[pattern-name].md

     )
   • Use template from "Pattern Documentation Template" section above

• Pattern structure is ambiguous or messy
• Multiple patterns could apply
• Pattern occurs at unusual market location
• Volume doesn't confirm pattern expectation
• Higher timeframe conflicts with pattern

🗣 Say: "Pattern identification is ambiguous. Let me ultrathink whether this is a valid setup."

• Am I forcing a pattern where none exists? (pattern shopping)
• Why would this pattern work HERE specifically?
• What's the base rate for this pattern type?
• What would invalidate this pattern quickly?
• Is this a textbook pattern or marginal case?
• What's the strongest argument this pattern will FAIL?
• Would I trade this with real money today?

• Clear, well-formed structure
• Occurs at significant S/R level
• Volume confirms pattern
• Multiple timeframe alignment
• Fits within larger market structure

• Messy, ambiguous structure
• Occurs in middle of range (no S/R context)
• Volume doesn't confirm
• Conflicts with higher timeframe
• Too small/insignificant

1. Pattern Shopping: Don't force patterns where they don't exist
2. Ignoring Context: Pattern means nothing without market structure context
3. Premature Entry: Wait for pattern completion and confirmation
4. Wrong Timeframe: Higher timeframe patterns more reliable
5. No Invalidation Plan: Always know when pattern has failed

• [Element 1 present/absent]
• [Element 2 present/absent]
• [Element 3 present/absent]

• Conservative: [Entry point with confirmation]
• Aggressive: [Entry point without confirmation]

• [Placement and price level]

• T1: [Level] (R:R = [ratio])
• T2: [Level] (R:R = [ratio])

• [What price action would invalidate this pattern]

• Pattern Quality: [High/Medium/Low]
• Confidence: [High/Medium/Low]
• Recommended Position Size: [% of normal size]