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
- Identify accumulation range: 2640-2660 consolidation
- Wait for Spring: Break to 2638, quick reversal
- GAIN OPTIMIZER confirms: BUY signal at 2642
- Enter on LPS: Price pulls back to 2650 (last support)
- Stop: Below Spring low (2636)
- 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) β
- C: Rally to 2642 (88.6% of AB) β
- 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
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:
- Bullish order block at 2640-2642
- Price returns, tests it
- Instead of bouncing, breaks through
- Failed support becomes resistance
- Now it's a "Breaker Block"
- Price rallies from below, hits 2640-2642
- Strong rejection expected (former support = new resistance)
Trading Order Blocks
- Mark the block: Last down candle before rally (2638-2642)
- Wait for return: Price pulls back to block
- GAIN OPTIMIZER confirms: BUY signal at 2640
- Entry: Within block zone (2639-2641)
- Stop: Below block (2636)
- Target: Previous high or measured move
Win rate: 80%+ when respected
5. Volatility Contraction Patterns
Low volatility precedes explosive movesβlearn 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
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
Scenario:
- Wyckoff Spring: Failed break of 2640 range β
- Order Block: Last down candle at 2642-2645 β
- Elliott Wave: End of Wave 2 correction β
- Harmonic: Bullish Bat D point at 2643 β
- GAIN OPTIMIZER: BUY signal 6/7 at 2644 β
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
- β Wyckoff Spring = Failed breakdown before markup
- β Harmonic Bat D point = 88.6% retracement
- β Elliott Wave 3 = Strongest, longest wave
- β Order blocks = Institutional accumulation zones
- β Volatility squeeze = Explosive breakout coming
- β Multiple pattern confluence = 90%+ win rate
- β Always combine with GAIN OPTIMIZER confirmation
- β Best setups have 3+ patterns aligned
- Learn one pattern deeply (start with Order Blocks)
- Mark examples on historical charts
- Spot pattern in real-time
- Wait for GAIN OPTIMIZER confirmation
- Take one high-confluence trade