Trending, Ranging &
Directional Patterns

A clean, sustained directional move where price climbs steadily in one direction with conviction. Candle bodies are large, wicks are small, and the EMA stack fans out progressively — EMA 20 pulling away from EMA 50 pulling away from EMA 200. Price barely pauses for more than two or three candles before continuing.

How to spot it: Consecutive large-body candles in one direction with minimal wick rejection. All four EMAs aligned and fanning out. No significant counter-move candles large enough to threaten the structure.

What signals show: EMA Spread registers WIDE and STRONG. Momentum Quality shows consistently bullish body weighting. EMA Velocity reads ACCELERATING. Trend Consistency above 70%. When all six signals align, this is one of the cleanest reads on the tool.

Price oscillates between two horizontal levels, bouncing back and forth without committing to a direction. The EMAs flatten out and cluster together. The range can persist for many candles before eventually resolving into a directional move.

How to spot it: Alternating bullish and bearish candles of roughly equal size, with wicks frequently touching the same upper and lower price levels. All four EMAs run nearly horizontal and are compressed together. There is no meaningful slope in any direction.

What signals show: EMA Spread reads NARROW. EMA Velocity shows DECELERATING or FLAT. Momentum Quality oscillates between mild bullish and mild bearish. Trend Consistency hovers around 50%. This is the hardest market state to predict — no clear edge exists.

An established trend runs for 120 candles, then price corrects back toward the EMA cluster before the original direction resumes. The pullback is distinguishable from a reversal by the smaller, less decisive candles during the correction phase compared to the original trend candles.

How to spot it: Strong trend candles in the first half of the setup, followed by smaller, slower candles moving against the trend direction. Price approaches but does not break decisively through the EMA cluster before beginning to resume the original direction.

What signals show: EMA Spread shows WIDE during the trend phase, narrowing during the pullback. Mean Reversion Risk often reads EXTENDED before the pullback begins. Structure shifts from STRONG to DECENT or INDECISIVE. The correction candles show weaker momentum than the trend candles that preceded them.

The market flips direction every 3 to 8 candles with no sustained momentum in either direction. EMAs are tangled and crossing repeatedly. Wicks are large relative to bodies — price tests both sides of the range without committing. This is the market's way of saying that neither side has conviction.

How to spot it: Frequent direction changes. Large wicks on most candles showing rejection at both extremes. Candle bodies small relative to wicks. The four EMAs crossing through each other with no clear stack configuration.

What signals show: All seven signals will frequently disagree. EMA Spread reads NARROW. Momentum Quality shows INDECISIVE. Structure reads INDECISIVE. This is one of the scenarios where a NEUTRAL Prediction Meter is the most accurate read — the market genuinely has no edge to give.

All four EMAs converge into a tight cluster — the market has been trending in one direction, reversed partially, then flattened. All four lines run nearly parallel within a very narrow band. Price sits right at the cluster. This is a coiled spring setup: when it breaks, it tends to break cleanly.

How to spot it: The four EMA lines visibly converging on the chart, running nearly parallel within a tight band. Candle bodies shrinking as the compression deepens. Price oscillating very close to all four EMAs simultaneously. The wicks of recent candles touch or cross the EMA cluster.

What signals show: EMA Spread reads NARROW. EMA Velocity reads DECELERATING. Mean Reversion Risk reads WITHIN RANGE. The compression itself is neutral — the direction of the eventual breakout is what matters.

Two hundred candles of tiny, compressed, directionless movement — the most compressed range possible. Bodies are minimal. Wicks are minimal. There is essentially no signal. This setup exists specifically to test whether you can recognize the absence of a tradeable condition before an explosive move arrives.

How to spot it: Candle bodies and wicks are both extremely small — far smaller than normal for the selected timeframe. All four EMAs run nearly flat and are tightly clustered. The price range over the entire chart is very narrow. There is nothing to read because nothing has happened yet.

What signals show: All signals will be WEAK or INDECISIVE. EMA Spread reads NARROW. Momentum Quality shows near-zero weighting. The lesson of this pattern: no setup means no trade. When there is nothing to read, the correct response is patience.

A strong, clean trend runs for 130 candles — then suddenly the candles become tiny. Each subsequent candle's high and low fits entirely within the range of the preceding candle. This is institutional patience: the trend is intact but price is pausing. The breakout, when it comes, typically continues in the trend direction.

How to spot it: Clear trend in the first two-thirds of the chart, then a visible shrinkage in candle size. The most recent candles are small enough that their high-low range fits within the prior candle's range. The EMA stack remains intact from the original trend.

What signals show: EMA Spread remains MODERATE or WIDE, reflecting the prior trend. Structure shifts to INDECISIVE as the inside bars form. Momentum Quality weakens. The important read is that the EMA stack is still pointing in the original trend direction despite the current pause.

Three drives in one direction, each one progressively weaker than the last. The first push is strong. The second retrace is shallow. The third push barely makes a new high (or low). Each push has slightly smaller candles than the one before. The market is running out of fuel but still moving in the trend direction.

How to spot it: Three visible pushes in the same direction on the chart, each separated by a brief pause or small counter-move. Each successive push shows slightly smaller candle bodies than the previous. The overall direction is still intact but momentum is visibly declining.

What signals show: Momentum Quality weakens with each push — early reads show STRONG, later reads show MILD. EMA Velocity shifts from ACCELERATING to DECELERATING. The Prediction Meter strength decreases with each push even as direction remains consistent.

Price initially moves against the direction that the setup suggests — a convincing counter-move that looks like a reversal for 170 candles. Then the last 30 candles aggressively recover. This pattern tests whether you can read the true underlying direction from the signal quality rather than the surface-level price action.

How to spot it: The first 60% of the chart shows strong movement in one direction. The middle section looks like a pullback. The most recent candles begin recovering toward the original direction. The EMA alignment tells the real story.

What signals show: EMA Spread and EMA Velocity read in the recovery direction even during the pullback. Close Position shifts to show closing near the top of range as recovery candles form. This is a setup where trusting the signals over the surface price movement is the key skill.

A strong trend establishes for 100 candles, price makes a deep retrace all the way back toward the 200 EMA, then aggressively rejects and continues the original trend. This is one of the highest-probability continuation setups in forex — price finds institutional support or resistance at the 200 EMA and resumes.

How to spot it: Clear trend in the first half. A pullback that goes significantly deeper than usual — approaching or touching the EMA 200 line visible on the chart. Then larger bullish (or bearish) candles forming as price bounces from the 200 EMA level.

What signals show: Mean Reversion Risk reads EXTENDED during the pullback phase. EMA Spread narrows significantly during the retrace. Then as the bounce begins, Momentum Quality shifts back to the original trend direction. Close Position moves from Lower Range back to Upper Range.

The market creates an organized staircase structure: each advance makes a new high, and each pullback holds above the prior low. This is textbook market structure — the definition of an uptrend (reverse for downtrend: lower lows and lower highs). Each step in the staircase confirms that buyers are in control at progressively higher prices.

How to spot it: A clear staircase pattern visible on the chart — three or more identifiable swing lows each higher than the previous, and three or more swing highs each higher than the previous. Structure is organized rather than chaotic.

What signals show: Trend Consistency reads HIGH — above 65% bullish candles. Momentum Quality consistently shows MODERATE to STRONG. EMA Velocity reads RISING. Structure reads DECENT or STRONG. The organized nature of the advance means most signals agree on direction.

A sharp, explosive vertical move — the Pole — in 60 candles, followed by a tight, diagonal consolidation — the Flag — for 90 candles. The consolidation drifts slightly against the original direction but stays within a narrow channel. The final 50 candles break out in the original trend direction.

How to spot it: A vertical spike in the first third of the chart — large candles, minimal wicks, very fast movement. Then a period of smaller, tightly channeled candles drifting slightly counter to the original move. Then a resumption of the original direction with similar energy to the initial pole.

What signals show: EMA Spread reads WIDE after the pole phase. During the flag, Momentum Quality weakens as the consolidation drifts counter. Then as the breakout begins, Momentum Quality and EMA Velocity both shift strongly back to the original direction.

150 candles of nearly flat, directionless price action — then a sudden explosive burst in one direction with large candles and minimal wicks. This pattern teaches the critical skill of waiting: the market was giving no signal for most of the chart, and then it committed completely.

How to spot it: The first 75% of the chart shows very small candles with almost no directional bias. All four EMAs are flat and clustered. Then in the final quarter of the chart, candle bodies suddenly expand dramatically in one direction — the surge is unmistakable.

What signals show: All signals read weak or flat during the range phase. Then simultaneously: EMA Velocity shifts to ACCELERATING, Momentum Quality jumps to STRONG, Close Position reads TOP THIRD. The surge is so large relative to the prior range that signals all flip strongly at once.

Similar to EMA Compression but more pronounced: price tightens progressively over 160 candles — candle bodies shrink, then shrink further, then shrink again. Then a decisive break in one direction with large candles. The compression is the spring loading energy. The break is the release.

How to spot it: A progressive narrowing of the price range visible across the chart — candles getting smaller as the pattern develops. The most recent pre-breakout candles are the smallest on the entire chart. Then one large decisive candle breaks the range.

What signals show: EMA Spread narrows progressively. EMA Velocity slows to nearly zero. Structure reads INDECISIVE during compression. Then at the break: Momentum Quality shifts strongly, Close Position reads at an extreme, and EMA Velocity jumps to ACCELERATING.

Price continues making new highs (or lows) but the candle bodies are shrinking — the advance is slowing even as it makes new ground. This is momentum divergence: the scoreboard (price) says one thing while the underlying energy (candle quality) says another. Smart money uses this to time entries early.

How to spot it: New price highs being made in the later candles, but with smaller bodies than the earlier trend candles that established the move. Wicks getting larger relative to bodies. The trend is intact on the surface but the quality of the trend is deteriorating.

What signals show: EMA Velocity shifts from ACCELERATING to RISING to DECELERATING as the divergence develops. Momentum Quality weakens even while EMA Spread remains wide. Structure shifts from STRONG to DECENT. The Prediction Meter confidence decreases even while direction stays consistent.

A three-wave structure: Leg A (the initial directional move), Leg B (a corrective counter-move), and Leg C (a continuation of the original direction that is approximately the same size as Leg A). This pattern reflects the natural Elliott Wave tendency of markets to move in corrective and impulsive waves.

How to spot it: Three distinct phases visible on the chart: a strong initial move (A), a pullback (B) that retraces roughly 38-50% of A, and then a second advance (C) that approximately matches A in size. The result is a staircase with a defined corrective pause in the middle.

What signals show: EMA Spread widens during Leg A, narrows slightly during Leg B, then widens again during Leg C. Momentum Quality is strong during A and C, weaker during B. The pattern is readable because the signals in Leg C mirror the signals that appeared at the start of Leg A.

A strong trend for 80 candles, then a gap in the original direction — price jumps sharply. The gap is then filled as price retraces back. Once the gap is filled, the original trend resumes. This reflects the market's tendency to complete unfinished business at prior price levels before continuing.

How to spot it: A sharp price gap visible on the chart — the open of one candle is significantly different from the close of the prior candle. Followed by a counter-move that partially or fully closes that price gap. Then a resumption of the original trend.

What signals show: After the gap: Close Position reads at an extreme. Then as the fill begins, Momentum Quality shifts counter. Mean Reversion Risk may read EXTENDED. Once the fill completes, Momentum Quality and Close Position shift back to the original trend direction.

Price approaches a key level repeatedly, finally breaks through convincingly, then pulls back to retest that same level — which now acts as new support (if broken upward) or resistance (if broken downward) — before launching the continuation move. One of the most reliable patterns in all of technical analysis.

How to spot it: A level that price has touched two or more times without breaking. A clean break through that level with large, decisive candles. A pullback that approaches but does not break back through the level. Then new momentum in the breakout direction.

What signals show: EMA Spread and Momentum Quality show the original direction during the approach. During the retest, Close Position and Structure may show brief hesitation. Once the bounce from the tested level begins, all signals shift strongly in the breakout direction — a cleaner read than the initial break.