Trend from highs and lows
Higher highs and higher lows: uptrend. Lower highs and lower lows: downtrend. Neither: a range. The course reads the macro trend on the weekly with a logarithmic scale and the micro structure on the four-hour.
Support and resistance that flip
Resistance that is broken and then retested from above becomes support. Support that is broken and retested from below becomes resistance. The course author's worked example is a Bitcoin zone around 40,000 to 41,000 dollars that flipped from resistance to support after several retests in a past cycle; that is history, not a current level.
The lesson chart's auto zones follow the same rule. A zone is coloured by where it sits against the last close, not by how it formed: green below price is support, red above price is resistance, violet means price is trading inside it. A zone that formed as swing highs but now sits under price carries a flipped tag, which is this role reversal caught by the detector; the touch count tells you how many times the market has respected the level in either role.
The W (bullish)
- A low.
- A higher low.
- A neckline through the peak between them.
- A break above the neckline, a backtest of it, and a new high confirm the shape.
Measured move: measure from the neckline down to the lower wick, and project that distance up from the neckline. It is a place to plan a take-profit, not a promise.
The M (bearish)
- A high.
- A lower high.
- A neckline through the trough between them.
- A break below, a backtest, and a new low confirm it.
Measured move: neckline to the upper wick, projected down.
A W that fails its neckline can turn into an M. Failure is the invalidation; do not argue with it.
On the Technical Analysis chart, the Measure tool gives the distance in price and percent directly.
Longer is stronger
A W that took six weeks to form carries more weight than one that took five days, and a weekly pattern more than a daily one. Patterns are confirmation on top of structure and the averages, never the whole case.
In the lab
Find the last confirmed W or M on your coin, measure its move, and compare the projection with the nearest auto zone and the orange 21. When the three line up you have a planned exit; write it in the journal before you trade it.