Five chart formations from your Day 3 lesson, explained with schematic paths, breakdown levels, and failure points.
Double Top · original schematic
A bearish reversal may form after a rise; a bearish continuation may follow a pause in an existing decline. Read the prior trend before interpreting a shape.
The paths below are simplified teaching diagrams. Draw levels as zones and check live price behaviour on your own chart.
Two peaks develop near the same resistance, with an intervening low.
The intervening low forms the neckline. A sustained breakdown supports the reversal idea; a new high beyond the peaks challenges it.
Three highs form around a common resistance area.
The lows between the highs mark a support area. Watch how price behaves below that area; a breakout above resistance invalidates the expected reversal.
A higher middle peak (head) is flanked by two lower peaks (shoulders) after a rise.
Connect the reaction lows to form a neckline. A breakdown may confirm the shape. The head-to-neckline distance is an illustrative measured move.
A sharp decline forms a pole before price rebounds inside a short upward channel.
Watch the lower channel boundary. A breakdown may resume the prior decline; a breakout above the flag challenges the setup.
Repeated lows test roughly flat support while each rally makes a lower high.
A break below support may resolve the compression downward. The initial triangle height is sometimes used as a visual projection; upside resolution remains possible.
Identify the prior trend and current market conditions.
Mark the relevant support, resistance, or trendline.
Look for a close, retest, and follow-through rather than a brief touch.
Define invalidation and a position size you can manage.
Open the Day 4 lesson in this series.
This original web lesson follows the topics in the supplied Day 3 PDF, which credits Vidya Phad. The text and diagrams here were newly created for AlphaEdge Pro Academy.
Pattern labels and measured moves are educational examples, not guaranteed predictions or personalized trading advice. Consider the possibility of false signals and losses.