Every setup and every system on this site assumes you already know what kind of market you're looking at before you apply any of them. This page teaches that part on its own: five market types, the actual tell for each one, and an untimed drill to check whether you can call it.
“Know what kind of market you're in before you touch any setup. Five types, one specific tell each, and the shape matters more than the label.”Jason Parker · Founder, TradeScalping.com
A stretch of chart is always doing one of these five things. Learn the shape, not just the name, since the name alone won't help the next time you're staring at one with no label on it.
Higher highs, higher lows, and every pullback holds before the next push. You're always in long until one of those pullbacks finally breaks the pattern.
Lower highs, lower lows, and every rally fails before the next leg down. The mirror image of a bull trend, same read, opposite direction.
Price taps the same two levels over and over and neither one gives. Buy the bottom, sell the top, and get out the moment one of those levels actually breaks.
A tight, boring stretch of overlapping bars finally lets go. One bar clears the whole thing and doesn't snap back in. You don't get to call it a breakout until it's already happened.
Bars stacked on top of each other, going nowhere, no edge worth trading in either direction. The correct read here is to not read it at all. Stand aside.
These aren't a sixth setup category. They sit underneath every setup and every system on this site. A breakout setup only works if the chart is actually in a tight range first. A pullback continuation setup only works if the chart is actually trending. Read the market type first, then pick the setup that fits it.
Fifteen charts, three of each type, shuffled. No countdown. Take as long as you want to look before you answer.
Every chart in this drill is randomly generated to fit its market type. None of it is historical price data, and none of it is tied to any specific ticker.
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