A name is not a forecast

Labels such as double top, triangle or flag describe structure without guaranteeing direction. Similar shapes occur in different environments. Specify the time frame and reference swings before interpreting a pattern.

Separate development from completion

An evolving shape may change. A practice rule might require a closing price beyond a boundary instead of a brief intrabar touch. Choose the confirmation method before examining the eventual outcome.

Describe a failure scenario

Mark where the interpretation would fail as well as where it might work. Re-entry into a range after a breakout calls for reassessment. Historical shapes do not remove spread or execution costs.

Preserve unfinished setups

Save the observation date and intended confirmation rule while a shape is developing, then add the outcome later. Keep it even if the pattern never completes. This includes the uncertainty faced at the time instead of collecting only convincing historical successes.

Source and reading notes

This is an independently written educational overview based on the ATFX reading linked below. Examples are illustrative, not live quotes or forecasts. It does not reproduce the original article or imply endorsement by its author.