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Set-ups

The Bull Flag Set-Up

A sharp advance, then a shallow drift against it, and a ceiling on that drift which is the one price the whole set-up is read from.

Intermediate7 min read
Set-ups

The Bear Flag Set-Up

A sharp decline, then a shallow drift back up against it, and a floor under that drift which is the one price the whole set-up is read from.

Intermediate6 min read
Set-ups

The Bull Pennant Set-Up

The same pause as a bull flag drawn as a triangle rather than a channel: the highs step down, the lows step up, and the range squeezes toward nothing.

Intermediate7 min read
Set-ups

The Bear Pennant Set-Up

A hard decline followed by a coil rather than a bounce: highs stepping down, lows stepping up, and a range that runs out of room.

Intermediate7 min read
Set-ups

The Trend Pullback Set-Up

The plainest continuation shape there is: an established uptrend, a dip into a rising reference that has already held twice, and a resumption from it.

Foundations7 min read
Set-ups

The Rally Fade Set-Up

The bearish mirror of the trend pullback: a downtrend, a rally into a falling reference that has already capped it twice, and a resumption from there.

Foundations7 min read
Set-ups

The Gap-and-Go Set-Up

A stock opens well above the range it has been trading in and never trades back into it, with the first half-hour's range becoming the reference everything afterwards is read against.

Intermediate7 min read
Set-ups

The Gap-Down Continuation Set-Up

A stock opens well below its range on a repricing it cannot recover from, and the first half-hour's low becomes the reference the rest of the session is read against.

Intermediate7 min read
Set-ups

The Momentum Stair-Step Set-Up

An advance that moves in stages: a short run, a tight shelf that holds above the last one, another run, and a series of shelves that never gives one back.

Intermediate7 min read
Set-ups

The Flat Base Set-Up

A ceiling price has been turned back from several times, a range that tightens underneath it, and the session that finally closes above it.

Foundations7 min read
Set-ups

The Ascending Triangle Set-Up

A flat ceiling with a rising floor underneath it: buyers arriving earlier at every dip while one price keeps capping the rallies.

Intermediate7 min read
Set-ups

The Descending Triangle Set-Up

A flat floor with a falling ceiling above it: sellers accepting less at every rally while one price keeps absorbing the declines.

Intermediate6 min read
Set-ups

The Cup and Handle Set-Up

A rounded decline and recovery back to a prior high, then a small drift below it, and a test of the level the whole structure is organised around.

Intermediate7 min read
Set-ups

The Inverted Cup and Handle Set-Up

A rounded top and decline back to a prior low, then a small drift above it, and a test of the level the structure is organised around.

Advanced7 min read
Set-ups

The Volatility Squeeze Set-Up

A market whose range has contracted to the narrowest it has been in months, which says a large move is coming without saying anything at all about its direction.

Advanced7 min read
Set-ups

The Range Break Set-Up

A rectangle with both sides working — a floor and a ceiling each tested more than once — and the session that finally closes outside one of them.

Foundations7 min read
Set-ups

The Double Bottom Set-Up

Two lows at roughly the same price with a rally between them, and the high of that rally as the level the reversal is confirmed at.

Intermediate7 min read
Set-ups

The Double Top Set-Up

Two highs at roughly the same price with a dip between them, and the low of that dip as the level the reversal is confirmed at.

Intermediate6 min read
Set-ups

The Inverse Head and Shoulders Set-Up

Three lows with the middle one deepest, two rallies between them forming a neckline, and the break of that neckline as the confirmation.

Advanced6 min read
Set-ups

The Head and Shoulders Top Set-Up

Three highs with the middle one tallest, two dips between them forming a neckline, and the break of that neckline as the confirmation.

Advanced6 min read
Set-ups

The Rounding Bottom Set-Up

A decline that slows, flattens, and turns without ever making a dramatic low, over months rather than weeks — and the old high that ends it.

Foundations7 min read
Set-ups

The Rounding Top Set-Up

An advance that loses speed, flattens into a dome, and turns down over months — with the price the advance came from as the level that ends it.

Intermediate6 min read
Set-ups

The Diamond Top Set-Up

A top that first broadens into wider and wider swings and then contracts back into a coil, leaving a diamond outline and a narrowing lower boundary that ends it.

Advanced7 min read
Set-ups

The Three Rising Valleys Set-Up

Three successive lows, each higher than the last, under a ceiling formed by the rallies between them — a base that announces itself before the level goes.

Intermediate7 min read
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