Interpret chart patterns, evidence and failure conditions

Separate structure, signal and detection

• Structure describes the bars and levels used by the rule.
• Signal bar is the candle that satisfies the rule's trigger, if one exists.
• Detection date is when the scanner evaluated the data. It may be later than the signal bar.
• Latest data date tells you how current the evidence is.

Completed versus developing candles

A daily or weekly condition should say whether its latest candle is complete. A developing weekly bar can move above a level and finish the week back below it.

• Treat provisional or developing labels as a warning that the pattern can change before the period closes.
• Compare the overlay, trigger and volume evidence using the same timeframe and trading-bar index.
• Do not turn an intraperiod move into a completed-close claim.

Use support and counter-evidence

• Support may include a completed close through a defined level, aligned volume expansion or repeated price support.
• Counter-evidence may include weak participation, overhead resistance, a stale signal or a broad-market contradiction.
• Missing history is unavailable evidence, not permission to substitute a schematic or an assumed candle.

Roman Hindi: support aur against dono likho. Sirf achchi baat dikhane se setup strong nahi ho jata.

Write the invalidation before the outcome

An invalidation is the observable condition that would make the current interpretation no longer fit the rule. It is not a guaranteed stop price or a trading recommendation.

• Use a clearly labelled level or structural condition from the same data.
• Re-evaluate when a new completed candle changes pivots, trendlines or the selected timeframe.
• Keep pattern statistics tied to their exact sample, period and rules. If that evidence is unavailable, say so.

Sources and methodology

Apply the lesson

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