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Elite Patterns - Advanced

Advanced Pattern Recognition

Master complex patterns professionals use for high-probability setups

πŸ“– 15 min read πŸ‘οΈ 510 views πŸ“… Updated today

πŸ“‹ Table of Contents

Beyond basic patterns lie sophisticated structures that reveal institutional behavior and high-probability opportunities.

1. Wyckoff Accumulation/Distribution

Wyckoff patterns show how institutions accumulate positions before major moves.

Accumulation Schematic

The Four Phases

Phase A: Stopping the Downtrend

  • Selling Climax (SC): Heavy volume, panic selling
  • Automatic Rally (AR): Dead cat bounce
  • Secondary Test (ST): Retest of SC low
  • Indication: Downtrend losing steam

Phase B: Building a Cause

  • Range formation: 2640-2660 for days/weeks
  • Multiple tests of support/resistance
  • Institutions accumulating quietly
  • Duration = Size of eventual move

Phase C: Spring (Liquidity Grab)

  • False breakdown below range (to 2638)
  • Stops triggered, weak hands out
  • Institutions buy panic selling
  • Price quickly back in range
  • KEY SIGNAL: Failed breakdown

Phase D: Markup Begins

  • Sign of Strength (SOS): Break above range
  • Last Point of Support (LPS): Pullback holds
  • Higher highs, higher lows
  • Major uptrend begins

Trading Wyckoff Accumulation

βœ… High-Probability Entry
  1. Identify accumulation range: 2640-2660 consolidation
  2. Wait for Spring: Break to 2638, quick reversal
  3. GAIN OPTIMIZER confirms: BUY signal at 2642
  4. Enter on LPS: Price pulls back to 2650 (last support)
  5. Stop: Below Spring low (2636)
  6. Target: Range size Γ— 2 = 2700+

Win rate: 75-80% when Spring confirmed

2. Harmonic Patterns

Fibonacci-based geometric patterns with precise reversal points.

Key Harmonic Patterns

Pattern Structure Reversal Zone Win Rate
Gartley XABCD pattern D at 78.6% XA 70-75%
Bat Sharp B retracement D at 88.6% XA 75-80%
Butterfly Extended pattern D at 127% XA 70%
Crab Most extended D at 161.8% XA 80%+

Bullish Bat Example

Perfect Bat Setup

Point identification:

  • X: Swing low at 2600
  • A: Rally to 2650 (+50 pts)
  • B: Pullback to 2625 (50% of XA) βœ“
  • C: Rally to 2642 (88.6% of AB) βœ“
  • D: Expected at 2612 (88.6% of XA)

Trading the Bat:

  • Wait for price to reach D zone (2610-2615)
  • GAIN OPTIMIZER BUY signal at 2612
  • Enter LONG at 2612
  • Stop: 2605 (below D)
  • Target 1: 2625 (point B)
  • Target 2: 2642 (point C)
  • Target 3: 2650 (point A)

3. Elliott Wave Essentials

Understanding wave structure reveals where price is in its cycle.

The 5-3 Wave Pattern

Impulse Waves (5 waves)

Uptrend structure:

  • Wave 1: Initial move up (2600 β†’ 2630)
  • Wave 2: Correction down (2630 β†’ 2615, not below 2600)
  • Wave 3: Strongest move (2615 β†’ 2670) Usually longest
  • Wave 4: Shallow correction (2670 β†’ 2655, not into Wave 1)
  • Wave 5: Final push (2655 β†’ 2680)

Corrective Waves (ABC):

  • Wave A: Initial decline (2680 β†’ 2650)
  • Wave B: Counter-rally (2650 β†’ 2665)
  • Wave C: Final decline (2665 β†’ 2640)

Trading Elliott Waves

βœ… High-Probability Wave Trades

Best entries:

  • End of Wave 2: After pullback, before Wave 3 explosion
  • End of Wave 4: Before final Wave 5 push
  • End of Wave C: Correction complete, new impulse starting

Wave 3 Trade (Most profitable):

  • Wave 1 complete: 2600 β†’ 2630
  • Wave 2 pulls back: 2630 β†’ 2618 (40% fib)
  • GAIN OPTIMIZER BUY at 2618
  • Entry: 2618
  • Stop: 2605 (below Wave 1 start)
  • Target: 2670+ (Wave 3 = 1.618 Γ— Wave 1)
  • Expected R:R: 4:1+

4. Breaker Blocks & Order Blocks

Smart Money Concepts that reveal institutional positioning.

Order Blocks

What Are Order Blocks

Definition: Last down candle before strong up move (bullish OB)

Characteristics:

  • Large institutional orders placed in this zone
  • Price returns to this area for "refueling"
  • Acts as strong support on retest
  • High-probability bounce location

Example:

  • Downtrend: 2670 β†’ 2650 β†’ 2640 β†’ 2638
  • Last red candle: 2642 β†’ 2638
  • Then explosive rally: 2638 β†’ 2660
  • Order block = 2638-2642 zone
  • If price returns, expect bounce from 2638-2642

Breaker Blocks

Failed Order Blocks Become Breakers

Evolution:

  1. Bullish order block at 2640-2642
  2. Price returns, tests it
  3. Instead of bouncing, breaks through
  4. Failed support becomes resistance
  5. Now it's a "Breaker Block"
  6. Price rallies from below, hits 2640-2642
  7. Strong rejection expected (former support = new resistance)

Trading Order Blocks

βœ… Order Block Strategy
  1. Mark the block: Last down candle before rally (2638-2642)
  2. Wait for return: Price pulls back to block
  3. GAIN OPTIMIZER confirms: BUY signal at 2640
  4. Entry: Within block zone (2639-2641)
  5. Stop: Below block (2636)
  6. Target: Previous high or measured move

Win rate: 80%+ when respected

5. Volatility Contraction Patterns

Low volatility precedes explosive movesβ€”learn to spot coiling patterns.

Squeeze Patterns

Pattern Structure Timeframe Breakout
Bollinger Squeeze BB bands narrowest in 6+ months H4-Daily Explosive (20-50 pts)
Coiling Triangle Converging highs/lows M15-H1 Sharp (10-25 pts)
Pennant After strong move, tight flag M15-H1 Continuation
Consolidation Box Narrow range, low volume All timeframes Variable

Trading Volatility Breakouts

βœ… Squeeze Breakout System

Setup identification:

  • Price consolidates 2645-2655 for 4+ hours
  • Range tightening: 2648-2652 last hour
  • Volume declining
  • Bollinger Bands contracting

Execution:

  • Don't predict direction (50/50 odds)
  • Set alerts above/below range (2656/2647)
  • Wait for breakout + GAIN OPTIMIZER confirmation
  • Enter in direction of break
  • Stop: Other side of range
  • Target: Range size Γ— 2-3

Example:

  • Range: 2648-2652 (4 pts)
  • Breaks UP to 2653
  • GAIN OPTIMIZER BUY at 2653
  • Entry: 2653, Stop: 2647, Target: 2665 (3:1 R:R)

6. Pattern + GAIN OPTIMIZER

Maximum edge comes from pattern + indicator confluence.

Multi-Pattern Confirmation

βœ… Perfect Storm Setup

Scenario:

  1. Wyckoff Spring: Failed break of 2640 range βœ“
  2. Order Block: Last down candle at 2642-2645 βœ“
  3. Elliott Wave: End of Wave 2 correction βœ“
  4. Harmonic: Bullish Bat D point at 2643 βœ“
  5. GAIN OPTIMIZER: BUY signal 6/7 at 2644 βœ“

Confluence score: 5/5 patterns aligned

Trade execution:

  • Entry: 2644
  • Stop: 2638 (below all support)
  • Target 1: 2660 (conservative)
  • Target 2: 2675 (standard)
  • Target 3: 2690+ (extended, Wave 3 target)

Expected outcome:

  • Win probability: 90%+
  • Average R:R: 5:1
  • This is the type of setup to risk 2% instead of 1%

What You've Learned

πŸŽ“ Advanced Pattern Mastery
  • βœ… Wyckoff Spring = Failed breakdown before markup
  • βœ… Harmonic Bat D point = 88.6% retracement
  • βœ… Elliott Wave 3 = Strongest, longest wave
  • βœ… Order blocks = Institutional accumulation zones
  • βœ… Volatility squeeze = Explosive breakout coming
  • βœ… Multiple pattern confluence = 90%+ win rate
  • βœ… Always combine with GAIN OPTIMIZER confirmation
  • βœ… Best setups have 3+ patterns aligned
πŸ’‘ This Week's Focus
  1. Learn one pattern deeply (start with Order Blocks)
  2. Mark examples on historical charts
  3. Spot pattern in real-time
  4. Wait for GAIN OPTIMIZER confirmation
  5. Take one high-confluence trade
← Liquidity Analysis Options Integration β†’