Inkbok - Trading Patterns

Breakout Resistance Line Support Line Symmetrical Triangle (Neutral) Bullish Breakout Horizontal Resistance Rising Support Ascending Triangle (Bullish) Bearish Breakout Falling Resistance Horizontal Support Descending Triangle (Bearish) Symmetrical Triangle: 1. Equal slope on both sides 2. Breakout can be either direction 3. Volume decreases as pattern forms 4. Minimum 4 touch points needed Ascending Triangle: 1. Horizontal resistance line 2. Rising support line 3. Typically breaks upward 4. Volume confirms breakout Descending Triangle: 1. Horizontal support line 2. Falling resistance line 3. Typically breaks downward 4. Volume confirms breakout

Triangle Patterns

Price consolidation patterns forming a triangle shape, indicating a potential continuation or reversal of the current trend.

Reliability: 72% success rate after confirmation
Best Timeframes: Daily, 4H, 1H
Symmetrical Triangle (Neutral) Ascending Triangle (Bullish) Descending Triangle (Bearish)
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Breakout Resistance Line Support Line Symmetrical Triangle (Neutral) Bullish Breakout Horizontal Resistance Rising Support Ascending Triangle (Bullish) Bearish Breakout Falling Resistance Horizontal Support Descending Triangle (Bearish) Symmetrical Triangle: 1. Equal slope on both sides 2. Breakout can be either direction 3. Volume decreases as pattern forms 4. Minimum 4 touch points needed Ascending Triangle: 1. Horizontal resistance line 2. Rising support line 3. Typically breaks upward 4. Volume confirms breakout Descending Triangle: 1. Horizontal support line 2. Falling resistance line 3. Typically breaks downward 4. Volume confirms breakout

Triangle Patterns

Reliability: 72% success rate after confirmation
Best Timeframes: Daily, 4H, 1H

Pattern Types:

  • Symmetrical Triangle (Neutral)
  • Ascending Triangle (Bullish)
  • Descending Triangle (Bearish)

Identification Points:

  • Converging trendlines
  • At least 4 touch points
  • Decreasing volume during formation
  • Break occurs 2/3 through pattern

Best Markets:

  • EUR/USD
  • USD/CHF
  • GBP/USD

Trading Tips:

  • Wait for convincing breakout
  • Check volume on break
  • Use measured move targets
  • Consider time-based exits

Common Mistakes to Avoid:

  • Trading false breakouts
  • Ignoring trend context
  • Poor stop placement
Gartley Pattern X A B (0.618) C (0.786) D (0.786) Butterfly Pattern X A B (0.786) C (1.618) D (1.27) Bat Pattern X A B (0.382-0.5) C (1.618-2.618) D (0.886) Crab Pattern X A B (0.382-0.618) C (2.618-3.618) D (1.618) Gartley Pattern: • XA: Initial move • AB: 0.618 of XA • BC: 0.786 of AB • CD: 0.786 of BC • AD: 0.786 of XA Butterfly Pattern: • XA: Initial move • AB: 0.786 of XA • BC: 1.618 of AB • CD: 1.27 of BC • AD: 1.27 of XA Bat Pattern: • XA: Initial move • AB: 0.382-0.5 of XA • BC: 1.618-2.618 of AB • CD: 0.886 of BC • AD: 0.886 of XA Crab Pattern: • XA: Initial move • AB: 0.382-0.618 of XA • BC: 2.618-3.618 of AB • CD: 1.618 of BC • AD: 1.618 of XA

Harmonic Patterns

Advanced price patterns based on Fibonacci ratios that help identify potential reversal points in the market.

Reliability: 70% success rate with proper validation
Best Timeframes: Daily, 4H, 1H
Gartley Pattern Butterfly Pattern Bat Pattern Crab Pattern
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Gartley Pattern X A B (0.618) C (0.786) D (0.786) Butterfly Pattern X A B (0.786) C (1.618) D (1.27) Bat Pattern X A B (0.382-0.5) C (1.618-2.618) D (0.886) Crab Pattern X A B (0.382-0.618) C (2.618-3.618) D (1.618) Gartley Pattern: • XA: Initial move • AB: 0.618 of XA • BC: 0.786 of AB • CD: 0.786 of BC • AD: 0.786 of XA Butterfly Pattern: • XA: Initial move • AB: 0.786 of XA • BC: 1.618 of AB • CD: 1.27 of BC • AD: 1.27 of XA Bat Pattern: • XA: Initial move • AB: 0.382-0.5 of XA • BC: 1.618-2.618 of AB • CD: 0.886 of BC • AD: 0.886 of XA Crab Pattern: • XA: Initial move • AB: 0.382-0.618 of XA • BC: 2.618-3.618 of AB • CD: 1.618 of BC • AD: 1.618 of XA

Harmonic Patterns

Reliability: 70% success rate with proper validation
Best Timeframes: Daily, 4H, 1H

Pattern Types:

  • Gartley Pattern
  • Butterfly Pattern
  • Bat Pattern
  • Crab Pattern

Identification Points:

  • Specific Fibonacci ratios
  • XABCD structure
  • Precise price legs
  • Clear reversal points

Best Markets:

  • EUR/USD
  • GBP/USD
  • USD/JPY

Trading Tips:

  • Confirm with other indicators
  • Use tight stops
  • Take partial profits at targets
  • Monitor multiple timeframes

Common Mistakes to Avoid:

  • Forcing pattern completion
  • Ignoring market context
  • Over-leveraging trades
Ascending Channel (Bullish) Upper Target Resistance Support Descending Channel (Bearish) Lower Target Resistance Support Horizontal Channel (Range) Resistance Support Buy Zone Sell Zone Ascending Channel: 1. Parallel upward sloping lines 2. Buy at support, sell at resistance 3. Breakout targets equal channel width 4. Higher highs and higher lows 5. Confirms bullish trend Descending Channel: 1. Parallel downward sloping lines 2. Sell at resistance, buy at support 3. Breakdown targets equal channel width 4. Lower highs and lower lows 5. Confirms bearish trend Horizontal Channel: 1. Parallel horizontal lines 2. Buy at support, sell at resistance 3. Indicates trading range/consolidation 4. Breakout direction signals new trend 5. Width indicates volatility Trading Guidelines: • Minimum 4 touch points required • Channel width should remain consistent • Volume confirms trend strength • False breakouts common - wait for confirmation • Risk management essential at boundaries

Channel Patterns

Price movements contained between parallel trendlines, showing a consistent trend direction.

Reliability: 82% success rate in trending markets
Best Timeframes: Daily, 4H, 1H
Ascending Channel (Bullish) Descending Channel (Bearish) Horizontal Channel (Range)
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Ascending Channel (Bullish) Upper Target Resistance Support Descending Channel (Bearish) Lower Target Resistance Support Horizontal Channel (Range) Resistance Support Buy Zone Sell Zone Ascending Channel: 1. Parallel upward sloping lines 2. Buy at support, sell at resistance 3. Breakout targets equal channel width 4. Higher highs and higher lows 5. Confirms bullish trend Descending Channel: 1. Parallel downward sloping lines 2. Sell at resistance, buy at support 3. Breakdown targets equal channel width 4. Lower highs and lower lows 5. Confirms bearish trend Horizontal Channel: 1. Parallel horizontal lines 2. Buy at support, sell at resistance 3. Indicates trading range/consolidation 4. Breakout direction signals new trend 5. Width indicates volatility Trading Guidelines: • Minimum 4 touch points required • Channel width should remain consistent • Volume confirms trend strength • False breakouts common - wait for confirmation • Risk management essential at boundaries

Channel Patterns

Reliability: 82% success rate in trending markets
Best Timeframes: Daily, 4H, 1H

Pattern Types:

  • Ascending Channel (Bullish)
  • Descending Channel (Bearish)
  • Horizontal Channel (Range)

Identification Points:

  • Parallel trendlines
  • At least 3 touches each side
  • Consistent slope
  • Regular price oscillation

Best Markets:

  • EUR/USD
  • USD/JPY
  • GBP/USD

Trading Tips:

  • Trade bounces off boundaries
  • Wait for confirmation candles
  • Use channel width for targets
  • Place stops beyond channel

Common Mistakes to Avoid:

  • Forcing parallel lines
  • Trading every touch
  • Ignoring broader trend