The order of evidence
- Wyckoff and market structure.
- Indicators: the averages, Fibonacci, RSI, MACD, Bollinger.
- Patterns and trend lines.
Crypto's volatility and leverage break patterns constantly. The course uses them only when the first two layers already agree.
Flags
A sharp move, then a tight channel drifting against it. Bull flag after a rise, bear flag after a fall; both are continuation shapes. The course wants at least one to two weeks of flag before it counts.
Pennants and triangles
Converging lines. Under a week it is a pennant; over a week it is a triangle, and the longer one is the stronger one. The author notes that breakouts have tended to come about three quarters of the way through the shape, which is a tendency to watch for, not a clock.
Wedges
Tighter versions of the above. The course rarely trades them.
Head and shoulders
Left shoulder, higher head, lower right shoulder, neckline under the two troughs. Measured move: head to neckline, projected down from the break. The inverse is the bullish mirror, and the course notes it often appears inside a Wyckoff spring, which is one reason structure comes first.
W and M, measured again
For a W: neckline to the lower wick, projected up. For an M: neckline to the upper wick, projected down. Same arithmetic as head and shoulders; the shape is just simpler.
In the lab
Switch on the zones and the two slower averages. Only inside a stretch where both agree on direction, look for a flag or triangle of more than a week, draw it, and note in your journal where the break came relative to the pattern's length.