By PatternLedger · Published

What the patterns look like

Made-up prices. Shape example only, not a detected signal.

Read left to right. The line charts join selected turning points; they leave out the full candle history and volume.

Range box: breakout

Range box: breakout — made-up chart example Repeated tests define a flat box from 100 to 110. The later price of 113 is above resistance. The box itself does not choose a direction. Made-up prices. Shape example only, not a detected signal. Price 94 105 116 Earlier Time → Later
  • Example price
  • Flat support 100
  • Flat resistance 110
  1. The upper and lower edges stay flat. Each has several separate tests and reactions.
  2. The later move above 110 shows the breakout. A return inside the box would remove a break signal.
Lower edge
100
Upper edge
110
Later price
113

Made-up prices. Shape example only, not a detected signal.

Range box: breakdown

Range box: breakdown — made-up chart example Repeated tests define a flat box from 100 to 110. The later price of 97 is below support. The box itself does not choose a direction. Made-up prices. Shape example only, not a detected signal. Price 94 105 116 Earlier Time → Later
  • Example price
  • Flat support 100
  • Flat resistance 110
  1. The upper and lower edges stay flat. Each has several separate tests and reactions.
  2. The later move below 100 shows the breakdown. A return inside the box would remove a break signal.
Lower edge
100
Upper edge
110
Later price
97

Made-up prices. Shape example only, not a detected signal.

The box is neutral until the interaction qualifies

A range box sits between horizontal support and resistance. In both examples, those edges are 100 and 110. Unlike a channel, the edges do not slope upward or downward.

One picture ends above the box at 113. The other ends below it at 97. These are two directions within one range-box pattern type, not two extra pattern types.

Separate repeated tests from one wide candle

A clear box needs repeated tests and reactions at both edges. Strict needs four independent touches and two confirmed reactions per edge, with clean containment.

One candle spanning the whole box does not establish both sides. Candles that touch both edges are excluded from both touch counts because their direction is unclear. The simple line drawings cannot show every full-candle check.

A break must hold outside the same box

The upward example moves above resistance at 110. The downward example moves below support at 100. The scanner needs a fresh, confirmed and held break, not simply one wick through an edge.

A return inside the box removes the break signal. Keep the original boundaries when checking that return. Do not redraw the box around a failed move to make the old break appear valid.

Current PatternLedger rules

These rule summaries are shared with the Pattern Reference. Strict means that more checks pass. It is not a promise of profit.

Range box

Look for
Price holds between repeatedly tested horizontal support and resistance.
Strict needs
Four independent touches and two confirmed reactions per edge; clean containment.
What makes it invalid
Failed boundary or re-entry after a break.

Check the real signal

  • Use the displayed signal date and the right Daily or Weekly chart.
  • Read the current direction, Strict or Loose label, and what makes the signal invalid.
  • Compare matching backtest evidence. A diagram, score, or past result does not guarantee a future return.

Keep reading

Compare all patterns

All 17 pattern types supported by PatternLedger, in eight groups. Use the 20 labelled pictures to compare their shapes, then open a guide for the rules and limits.