Pattern completion level
We get the take profit from the pattern completion level (PCL).
- Measure vertical distance from top of head (including wicks or body; you can ignore rogue wicks.
- Continue it the same distance past the neckline. That is the PCL level
- On the horizontal line where the PCL level is, look left to find a candle body.
3.1. Has price been there before ?
3.2.
3.3. In this example, if we use the wick in the head, the price has practically has never been to the PCL level before, so in this case, you'd consider not including the wick:
3.4. In this example, price has never been to the PCL before, so the pattern is not valid:
