Chart patterns on altFINS are classified as Emerging or Complete (breakout):

1. Emerging: when price still trades between the support and resistance lines. So emerging patterns are technical trade setups that have yet to break out.
2. Complete (breakout): when price has broken through the support or resistance line. These are setups that are ready for trading.  Does it matter in which direction it breaks out? Yes, definitely.  The breakout has to happen away from the last turning point.  There are some other characteristics that will also indicate what the direction of the breakout should be, and those are 1) the direction of the initial trend, together with 2)  whether the pattern is a reversal or continuation.  Continuation patterns break out in the same direction as the initial trend, while reversal patterns break out in the opposite directions to the initial trend. The easiest way to know which direction the pattern is expected to break out, is to see where the direction arrow is pointing.

 

     

 

How to distinguish Emerging and Complete patterns in the charts?

1. Emerging: the most obvious feature of an emerging pattern is the two yellow dotted lines that extend the support and resistance lines.  Their purpose is to give you a visual of the continuation of the expected trading range.
2. Complete (breakout): the most obvious feature of a completed pattern is the great forecast region with the colored target level.  If you see this construction next to a chart pattern, then you will know that it has completed by breaking through either the support or resistance level and it has an overall average chance of 70% that it will reach the target level.  

Another way to distinguish Emerging and Completed patterns in the graphs, is that Completed patterns have colored arrows, while the arrows of emerging patterns are grayed out.

 

How to trade? 

1. Emerging patterns are particularly useful for swing traders on trending pattern formations. The opportunities that many swing traders are looking for are situations where price becomes range-bound and it continues to bounce between support and resistance. They go long on the upward bounce and short on the downward for as long as it stays within the range.  Traders should look for emerging patterns where the range is sufficiently wide and where it doesn’t become too narrow too soon.  So typically ideal situations are trending patterns like channels and not so much the non trending patterns like triangles.  Also, try to find patterns with a nicely defined range that have just bumped off the support or resistance line and have a reasonable distance to cover until price reaches the opposite boundary.
2. Complete patterns (breakout) are simple trades; you go with the breakout direction and the target level.