Intermediate · Forex & Crypto Trading · Chapter 2
Market Structure & Pattern Recognition
Learn how to read trend, spot high-quality Head & Shoulders and Double Top/Bottom patterns, understand volume differences in forex vs crypto, and turn patterns into complete trade plans using TradingView.
What you’ll learn
- Identify trend direction using swing highs and lows (HH/HL vs LH/LL).
- Draw support and resistance zones that actually matter on your charts.
- Spot and label Head & Shoulders and Double Top/Bottom patterns correctly.
- Calculate measured-move targets based on pattern structure, not guessing.
- Write a complete trade plan: entry, stop loss, target, and risk-to-reward ratio.
- Use TradingView tools professionally (path, horizontal ray, text notes, alerts).
- Understand volume limitations in forex (tick volume vs real volume) and in crypto.
- Think probabilistically about patterns instead of expecting “sure wins.”
Course description
Chapter 2 turns you from “I see random candles” into someone who can read structure at a glance. You’ll learn how to identify uptrends, downtrends, and ranges, draw support and resistance zones, and use those as the foundation for trading patterns.
From there, you’ll dive into classic reversal patterns like Head & Shoulders and Double Tops/Bottoms, including confirmation rules, measured targets, and logical stop placement. You’ll also learn how volume really works in forex vs crypto, and why patterns are probabilities—not promises—so risk management always comes first.
The chapter ends by tying everything together into a 7-step trade plan: context, setup, trigger, stop loss, targets, risk-to-reward, and position size, plus journaling and reflection so you actually improve over time.
Curriculum
Section 1 — Market Structure in 10 Minutes
- 1.1 What is Market Structure?
- 1.2 Uptrend: Higher Highs & Higher Lows (HH/HL)
- 1.3 Downtrend: Lower Highs & Lower Lows (LH/LL)
- 1.4 Range (Sideways Market)
- 1.5 Support & Resistance Zones
- 1.6 TradingView Practice: Drawing Market Structure
Section 2 — Head & Shoulders Pattern
- 2.1 What is a Head & Shoulders Pattern?
- 2.2 Parts of the Head & Shoulders Pattern
- 2.3 Confirmation: When is H&S “Activated”?
- 2.4 Measured Move Target (How Far Will Price Go?)
- 2.5 Stop Loss / Invalidation (Where Am I Wrong?)
- 2.6 Inverse Head & Shoulders (Bullish Version)
- 2.7 Common Mistakes with H&S
- 2.8 TradingView Practice: Drawing H&S
Section 3 — Double Tops & Double Bottoms
- 3.1 What is a Double Top (DT)?
- 3.2 What is a Double Bottom (DB)?
- 3.3 How to Draw Double Tops & Bottoms
- 3.4 Measured Move Target for DT/DB
- 3.5 Stop Loss / Invalidation for DT/DB
- 3.6 TradingView Practice: Drawing DT/DB
Section 4 — Volume Reality Check (Forex vs Crypto)
- 4.1 What is Volume in Trading?
- 4.2 Forex is Decentralized (OTC Market)
- 4.3 What is Tick Volume?
- 4.4 Crypto Volume (Exchange-Based)
- 4.5 How to Use (or Not Use) Volume in Pattern Trading
Section 5 — From Pattern to Plan (Building a Complete Trade Idea)
- 5.1 Why You Need a Trade Plan
- 5.2 The 7-Step Trade Plan Template
- 5.3 Entry Triggers (When to Pull the Trigger)
- 5.4 Stop Loss Placement (Protecting Your Capital)
- 5.5 Target Placement (Where to Take Profit)
- 5.6 Risk-to-Reward Ratio (R:R)
- 5.7 Position Sizing (How Much to Risk)
- 5.8 Journaling Your Trade (Before & After)
- 5.9 Workshop: Write Your First Trade Plan
Section 6 — Patterns are Probabilities, Not Promises
- 6.1 No Pattern Works 100% of the Time
- 6.2 How to Think Probabilistically
- 6.3 Why Some Patterns Fail
- 6.4 Using Patterns with Other Tools (Confluence)
- 6.5 The Role of Discipline and Patience