Understanding 17 Pattern Detection
Quantum GradeA automatically detects 17 chart patterns across three priority categories: Reversal (P1), Continuation (P2), and Candlestick (P3). Each pattern receives a confidence score and is graded using the NQ Enhanced Score.
Pattern Categories Overview
| Category | Patterns | Base Confidence | Best Timeframe |
|---|---|---|---|
| P1: Reversal | 6 patterns (H&S, Double/Triple Top/Bottom) | 80-88% | H4, Daily, Weekly |
| P2: Continuation | 9 patterns (Flags, Pennants, Triangles, Wedges) | 65-75% | H1, H4, Daily |
| P3: Candlestick | 9 patterns (Engulfing, Star, Hammer, Fakey) | 50-78% | All timeframes |
| RSI Divergence | Bullish/Bearish divergence detection | Variable | H4, Daily |
| Fakey | False breakout trap patterns | 78% | H4, Daily |
P1: Reversal Patterns
6 high-probability reversal patterns detected automatically
Key Characteristics
- •Head & Shoulders / Inverse Head & Shoulders (80% base confidence)
- •Double Top / Double Bottom (85% base confidence)
- •Triple Top / Triple Bottom (88% base confidence)
- •Detected at significant support/resistance levels
Examples
- •Head & Shoulders at weekly resistance
- •Double Bottom at major demand zone
- •Triple Top with bearish divergence
Best For: Swing traders looking for major trend reversals
P2: Continuation Patterns
9 continuation patterns for trend-following entries
Key Characteristics
- •Bull/Bear Flag (75% base confidence)
- •Bull/Bear Pennant (70% base confidence)
- •Ascending/Descending/Symmetrical Triangle (65-72% confidence)
- •Rising/Falling Wedge (70% base confidence)
Examples
- •Bull Flag breakout in uptrend
- •Ascending Triangle continuation
- •Falling Wedge bullish reversal
Best For: Traders who prefer trading with the trend
P3: Candlestick Patterns
9 candlestick patterns at key confluence zones
Key Characteristics
- •Bullish/Bearish Engulfing (70% base confidence)
- •Morning/Evening Star (75% base confidence)
- •Hammer/Shooting Star (65% base confidence)
- •Doji (50% base confidence) and Fakey (78% base confidence)
Examples
- •Bullish Engulfing at EMA confluence
- •Morning Star at daily support
- •Fakey pattern trapping retail traders
Best For: Price action traders who read candle patterns
RSI Divergence
RSI divergence signals for reversal confirmation
Key Characteristics
- •Bullish divergence: Price makes lower low, RSI makes higher low
- •Bearish divergence: Price makes higher high, RSI makes lower high
- •Combined with pattern detection for higher probability
- •Works across all timeframes
Examples
- •Bullish RSI divergence at Double Bottom
- •Bearish divergence at Head & Shoulders neckline
- •Hidden divergence for continuation
Best For: Traders who use momentum confirmation
Fakey Pattern
False breakout trap pattern with high win rate
Key Characteristics
- •Detects false breakouts that trap retail traders
- •78% base confidence when properly identified
- •Entry after failed breakout confirms reversal
- •Often signals start of new directional moves
Examples
- •Bull Fakey at support zone
- •Bear Fakey at resistance with volume spike
- •Fakey combined with inside bar
Best For: Traders who understand stop hunt mechanics
Signal Selection Best Practices
Start Simple
Begin with P2: Continuation signals. They have the highest consistency rate because you're trading with the trend.
Match Your Style
Aggressive traders may prefer Reversal and Strong Engulfing. Conservative traders should focus on Continuation.
Timeframe Alignment
Always check that the signal type aligns with the higher timeframe bias. A reversal signal against Daily trend requires extreme caution.