CHART PATTERNS Trading Guide

The Chart Patterns module is an ambitious, automated shape-recognition engine. It uses a sliding window and linear regression logic to identify and label classic structural formations such as Wedges, Triangles, and Channels across any timeframe.

What does the indicator show?

• Pattern Boundaries: Colorful connected lines boxing in the current structural formations with their swing anchor points highlighted.
• Pattern Extrapolations: For converging shapes (like Wedges and Symmetrical Triangles), the system automatically projects the apex intersection point into the future.
• On-Chart Labels: Elegant tooltip boxes automatically naming the detected structure (e.g., "Rising Wedge (Contracting)") directly on the chart.

Key Settings

• Visibility Toggles: Choose exactly what types of geometric shapes to hunt for (Wedges, Triangles, and/or Channels).
• Lookback & Min Bars: Dictates the structural size of the patterns. A large lookback combined with a high minimum bar count will capture only macro multi-week structures.
• Slope Tolerance: The acceptable mathematical leniency when determining if a line is "flat" (crucial for Ascending/Descending triangle recognition).

How to use Strategy Parameters (Condition Source)

Within the Strategy Tester module, you can leverage the data from this indicator to create powerful logical conditions for trade entries and exits.

1. Automated Pattern Breakouts

The system emits specialized signals categorizing the active geometric shapes and the exact moment they fail or break out.

• Any Rising Wedge / Any Triangle / Any Channel — Broad grouping booleans that stay True as long as the specific category of pattern is currently active.
• Bullish / Bearish Pattern — Booleans indicating the theoretical directional bias of the currently drawn structure.
• Pattern Breakout Up / Down — Precise boolean triggers that fire the moment price breaks and closes outside the bounds of the active shape.
• Individual Pattern Names — Highly specific flags (e.g., Falling Wedge (Contracting)) if you want to trade a very specific setup.

Strategy Example: A breakout trader can build a strategy that checks if Pattern Breakout Up is_true while ensuring the setup originated from a Bullish Pattern bias.