Four continuation patterns we work through in cohort sessions. Each entry below includes the zone logic, a typical invalidation level, and the conditions where we advise standing aside.
01
In an uptrend, price breaks a horizontal resistance, rallies, then retraces to retest that level as support. The zone is the former resistance band — not the deepest point of the prior swing.
Invalidation: Daily close below the retest zone, especially on elevated volume relative to the prior five sessions.
Pass when: The breakout candle was weak (small body, long upper wick) or the retest happens more than twelve sessions after the break.
02
After an impulsive leg, price pulls back to the 38.2% or 50% Fibonacci level that aligns with a prior swing low (uptrend) or swing high (downtrend). Fibonacci alone is never sufficient — structure must agree.
Invalidation: Close beyond the 61.8% level or break of the swing that defined the Fibonacci anchor.
Pass when: The impulse leg was choppy with overlapping candles, making the swing anchor ambiguous.
03
Price respects a rising trend line connecting at least two higher lows while the higher-timeframe trend remains up. Entry targets the third or fourth touch, not the first.
Invalidation: Close below the most recent higher low, even if the trend line itself has not broken yet.
Pass when: The trend line angle is too steep (more than 45 degrees on a standard scale) suggesting an unsustainable extension.
04
The 20-period and 50-period moving averages on the entry timeframe converge with a structure zone on the higher timeframe. Used as confirmation, not as the primary reason to enter.
Invalidation: Close on the wrong side of both averages plus loss of the structure level they were meant to defend.
Pass when: Averages are flat or crossed, indicating range conditions rather than trend continuation.
The setup guide is a reference. Cohort programmes include live markup, homework, and feedback on your application of each pattern.