Emerging Chart Patterns:

Emerging chart patterns provides one with early notification of potential trading opportunities. They represent fully formed patterns that only need price to break through support or resistance in order to complete.

As soon as price breaks through the anticipated level of support or resistance, the emerging pattern is expired and a completed pattern presented as a trading opportunity.

Many emerging patterns do not complete however, and this usually means that the price has not continued moving in the direction of support or resistance where the breakout for completion was expected. If a new turning point forms between the support and resistance levels before breaking out, the emerging pattern will expire.

Emerging Fibonacci Patterns:


Emerging Fibonacci patterns are slightly more convoluted, as there is more than one hypothetical condition that needs to occur for the pattern to complete.

The setup for an emerging Fibonacci pattern has a theoretical final turning point set at a particular price level, indicated by a pink dot on the graph. For the pattern to complete, price not only has to reach that level, but it has to find support/resistance at that level and retrace in the opposite direction.

If either the price does not reach the target level, or it does not turn around at that level, the pattern will expire.