Module 5 · From patterns to study rules
From patterns to study rules — Trading Academy
Define recognition, entry, exit and failure conditions before looking at results. These exercises do not present validated trading systems.
First lesson: Define a chart pattern’s boundary. No sign-up required.
Lesson 1 of 3
Define a chart pattern’s boundary
Not completed
By the end of this lesson
- Separate a candidate pattern from its completion rule.
- Calculate an entry-specific ratio rather than relying on the pattern’s total height.
Suggested preparation: Mark and test a price zone, Read the candle before the label
Work it through
Sketch a double top with peaks at 1.1100 and neckline 1.1060. Mark what a close-based break requires, then add a recovery path that fails.
Lesson 2 of 3
Write a complete study specification
Not completed
By the end of this lesson
- State entry, exit, expiry, execution and cost assumptions.
- Keep development choices separate from an untouched evaluation sample.
Suggested preparation: Include costs consistently, Define a chart pattern’s boundary
Work it through
Write a one-page hypothetical rulebook containing instrument, timeframe, completed-data rule, entry, stop, target, expiry, costs and no-trade conditions. List any remaining ambiguity.
Lesson 3 of 3
Account for a breakout’s execution
Not completed
By the end of this lesson
- Use the next permitted executable price rather than an invented earlier fill.
- Translate a gross payoff into a result after stated costs.
Suggested preparation: Write a complete study specification
Work it through
Reconcile the guide’s USD 24 gross risk, USD 48 gross reward and USD 0.70 additional commission. Keep the failed-break example in the same study log.
Prepared by InsomniCapital. Checked 2 October 2026. Sources and detailed assumptions appear in each linked guide. Read the risk disclosure.