What it is
Chart patterns are shapes made by several swings, often over dozens of candles. They show a balance between buyers and sellers changing: a double top shows a failed second attempt at a high, a head and shoulders shows a trend losing its rhythm, a triangle shows a squeeze before a break.
WickSpeak looks at the most recent swings only, so the pattern clears when structure moves on rather than lingering from long ago.
How it is calculated
1. Find swing highs and lows using the swing size setting and keep the last 7. 2. Head and shoulders: three highs with the middle one highest and the outer two about equal. The neckline joins the lows between them. 3. Double top or bottom: two highs (or lows) about equal, with a turn between them. 4. Two points count as equal when they differ by no more than 25% of the pattern's own height (the tolerance setting). 5. Triangles and wedges: the highs and lows form two converging lines. 6. Each line is tagged with its pattern's name.
Settings
| Setting | Default | Range | What it changes |
|---|---|---|---|
| swing size | auto | auto, or a fixed 0.25%, 0.5%, 1%, 2%, 3%, 5%, 8%, 12% or 20% | How big a move must be to count as a swing. Larger finds bigger, slower patterns. |
| tops match within % of height | 25 | 5 to 60 | How close two tops or bottoms must be, as a share of the pattern's height. Lower is stricter. |
How to read it
How to trade it
- 1
Wait for the pattern to complete and draw its neckline or boundary.
- 2
Entry trigger: a candle closes beyond the neckline. On US30 1 hour, sell a close below a head and shoulders neckline.
- 3
Stop: back above the right shoulder, or above the neckline plus a buffer for a tighter stop.
- 4
Target: the pattern's height (head to neckline) projected from the break. If the head is 300 points above the neckline, target 300 points below it.
- 5
Some traders wait for a retest of the broken neckline for a better price.
A head and shoulders short is proved wrong if price closes back above the right shoulder. A double top is proved wrong by a close above the two tops.
WickSpeak draws the pattern lines and names on the chart and writes a plain-English reading: which pattern it is, how to trade the break and what would prove it wrong. The 146 pattern scanner covers 30 chart patterns, including flags, pennants, cup and handle, triple tops and rectangles.
Best markets and timeframes
Chart patterns read best on 1 hour to daily charts. Gold, US30, NAS100 and the major forex pairs all form them clearly.
Common mistakes
- Shorting a head and shoulders before the neckline breaks.
- Calling any two highs a double top without a real turn between them.
- Ignoring volume and trend; a pattern against a strong trend often fails.
Works well with
Questions traders ask
What is the most reliable chart pattern?
None is reliable on its own. Head and shoulders and double tops are widely used because the neckline gives a clear trigger and stop.
How do you measure a chart pattern target?
Take the pattern's height, such as head to neckline, and project it from the breakout point. It is a guide, not a promise.
What is a neckline?
The line joining the lows between the shoulders of a head and shoulders, or the middle low of a double top. A close through it confirms the pattern.
Why does a pattern disappear from the chart?
WickSpeak reads only the last 7 swings, so once new swings form the old pattern clears. That keeps the chart focused on current structure.