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Normal (Intermediate) Course · Chapter 2

Market Structure & Pattern Recognition

Learn to read market structure, identify high-quality reversal and continuation patterns, and convert them into written trade plans—all using TradingView on forex and crypto charts.

⏱ 90–120 minutes 🖥 Hands-on practice 📚 Lesson 01 of 5
Important Reminder Forex and crypto trading are high risk and speculative. Everything on this website is for education only and not financial advice. Never trade with money you cannot afford to lose. Always start with a demo or paper trading account. For real investment decisions, consult licensed financial professionals in the Philippines.

What you’ll be able to do after this chapter

  • Identify trend direction using swing highs/lows (HH/HL vs LH/LL) and basic support/resistance zones.
  • Spot and annotate Head & Shoulders and Double Top/Bottom patterns; draw necklines and measured-move targets.
  • Write a simple, rules-based trade idea with entry triggers, invalidation, target(s), and risk-to-reward.
  • Use TradingView tools (trendlines, horizontal rays, text notes) to build a clean chart and repeatable checklist.
  • Understand that forex is decentralized (OTC); tick volume is a proxy and less reliable than centralized volume.

Introduction: Your first hands-on lesson

Market structure is the foundation of technical analysis—like reading the road before you drive. In this chapter, you'll learn to identify uptrends (HH/HL), downtrends (LH/LL), and ranges, then graduate to classic reversal patterns: Head & Shoulders and Double Tops/Bottoms. We’ll go step-by-step on TradingView so the platform feels simple and familiar. Most importantly, you'll turn pattern recognition into an actionable trade plan with clear entries, stops, and targets.

Key Concepts You’ll Master

  • Market Structure: Uptrend (HH/HL) · Downtrend (LH/LL) · Range · Support/Resistance zones
  • Patterns: Head & Shoulders (Top/Inverse) · Double Top (M) · Double Bottom (W) · Necklines · Measured moves
  • Trade Planning: Entry trigger · Invalidation/Stop · Target · Risk-to-reward · Position sizing
  • TradingView Skills: Path tool · Horizontal rays · Text notes · Alerts · Ruler tool
Remember: Patterns are probabilities, not promises. Demo first; when live, risk small. Keep journal screenshots. Respect your money plan.

Lesson roadmap

Section 1 — Market Structure in 10 Minutes

Structure basics
  • Uptrend (HH/HL) vs Downtrend (LH/LL) vs Range
  • Support/Resistance zones (draw areas, not lines)
  • TradingView demo: path tool + horizontal rays

Section 2 — Head & Shoulders (H&S)

Reversal pattern
  • Identification rules: Left Shoulder → Head → Right Shoulder
  • Neckline drawing and break confirmation
  • Measured-move target calculation

Section 3 — Double Tops & Double Bottoms

M/W shapes
  • Double Top (M) and Double Bottom (W) identification
  • Neckline + break confirmation
  • Measured-move targets

Section 4 — Volume Reality (Forex vs Crypto)

Context only
  • Why forex is OTC and decentralized
  • Tick volume as a proxy (not absolute truth)
  • Crypto exchange volume: exchange-specific data

Section 5 — From Pattern to Plan

Execution
  • Template: Context → Setup → Trigger → Invalidation → Target → Risk → Review
  • Fixed fractional risk example (0.5%–1% of account)
  • Journal screenshots before/after trades

Workbook & Quiz

Practice
  • Workbook exercises: W2-A through W2-D
  • Quiz: 12 items (≥9/12 required)