Classical Pattern Examples

Patterns in Practice — R Multiples and Live Execution

Classical patterns are only as useful as your ability to execute them with discipline. Every pattern provides a Level (the channel boundary or neckline), a Trigger (the breakdown/breakout candle), and an Entry (the retest of the broken level). Combining LTE methodology with pattern trading is how you achieve consistently high R multiples — trades like 3.88:1 and 6.23:1 become repeatable.

• Bear Flag (EOS/USD 12H): entry at Sr flip of flag resistance → trigger = hanging man → stop above resistance → R = 3.88:1
• Bull Flag (BTC/USD 4H): entry at Sr flip of bull flag → indecision candle trigger → stop below flag low → R = 6.23:1
• Descending Triangle (BTC Daily): waited for neckline retest entry 1 month after breakdown → R = 2.74:1
• Ascending Triangle (ETH Daily): higher lows + flat top → breakout + retest entry → R = 2.84:1
• Always measure the POLE for your target — this is the objective, predefined price target
• Entries come on RETESTS — not immediately on the break; patience after the break is part of the discipline

Live Examples — Bear Flag, Bull Flag, and Triangles

Real pattern trading requires waiting. After the initial breakout or breakdown from a pattern, it is tempting to chase. The experienced trader waits for the retest of the broken channel wall — that retest is the actual LTE entry. The pattern's pole or height measurement gives a predefined target with no guessing required.

• Bear Flag execution: identify downtrend → wait for flag channel to form → Level = upper channel resistance → Trigger = rejection candle at resistance (hanging man) → Entry = breakdown of lower channel support → Stop above flag high → Target = pole distance below breakdown
• Bull Flag execution: identify uptrend → wait for flag pullback → Level = lower channel support as Sr flip → Trigger = indecision candle → Entry = breakout above upper channel → Stop below flag low → Target = pole distance above breakout
• Descending Triangle: lower highs + flat bottom → breakdown below flat support → Entry = retest of flat bottom from below (old support now resistance) → Target = height of triangle
• Ascending Triangle: higher lows + flat top resistance → breakout above flat resistance → Entry = retest of flat top from above (old resistance now support) → Target = height of triangle
• Daily timeframe patterns take weeks to months to fully play out — patience is mandatory
• Journal R multiples for every pattern trade — data will tell you which pattern type has the highest hit rate in your hands

Price is making lower highs on every rally while repeatedly bouncing off the same flat support level — touching it three times without breaking lower. The pattern has now formed a fourth lower high. What pattern is this, and what should you expect next?

• ● Descending Triangle — lower highs + flat support = bearish; expect breakdown below the flat level
• ● Ascending Triangle — flat support signals buyer strength; expect bullish upside breakout
• ● Symmetrical Triangle — lower highs + flat lows is indeterminate; wait for either side to confirm

Answer it (with a live chart) in the interactive lesson.