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

Channel Targets and Stop-Loss (SL)

Automatic SL & Targets: When you enable the Targets toggle in the settings, the indicator now displays both the designated target and the calculated Stop Loss (SL) directly on the chart for active channel patterns.

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.

Falling Wedge

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

Wedges Targets and Stop-Loss (SL)

Automatic SL & Targets: When you enable the Targets toggle in the settings, the indicator now displays both the designated target and the calculated Stop Loss (SL) directly on the chart for active wedge patterns.

"Stay in Trade" Mode

• Prevent Overlapping Signals: The new "Stay in Trade" input helps prevent the indicator from spamming new pattern entries while an active trade is still ongoing.

• How It Works:

  • This input becomes active only when the Targets toggle is turned ON.

  

  • When enabled, the toolkit will lock out the creation of any new patterns until your current position's stop loss or target is officially hit.

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:

Settings