The set-up with no shape

What the Lesson Covers

1. 0:00No pattern name, no tidy outline, and the most common continuation on any chart.
2. 0:06The shape. An uptrend already making higher highs and higher lows dips into a rising reference it has held before, on smaller bars, then turns and goes back at the last high.
3. 0:17Why it forms. Trends persist while buyers keep absorbing supply. The dip is the moment that gets tested, and the average is just a consistent place to watch it happen.
4. 0:27The levels that matter. The reference, the prior high, the prior low, and how deep the last pullback was. That final measurement does most of the work here.
5. 0:37Where it completes. It completes on a close back above the prior high. It stops holding below the prior low, because underneath that there is no sequence of higher lows and so no trend at all.
6. 0:48How often it follows through. Sixty-four to seventy per cent, the highest band here, because it asks the least: an existing trend doing what it has already done.
7. 0:57The same shape failing. The failure is quiet. The dip simply keeps going, cuts the average, undercuts the prior low, and an uptrend has become a range without any single dramatic bar.
8. 1:08The tells. A pullback already deeper than the last one, a close below the reference followed by a retest from underneath, or advances that keep getting shorter.
9. 1:18Watch the swings, not the shape. The swings are the trend.