In actual trading, most trend markets do not complete in one go; they will always 'stop to catch their breath' in between. These breathing spots are what we call 'intermediate patterns'.
Various patterns are not difficult to recognize, but the real question is:
Can you patiently wait before a breakout, and can you decisively enter after the breakout?
How to usually handle these patterns?
First type: Triangle (especially symmetrical triangle) — Don't bet early, as it can easily lead to whipsaws.
The most annoying part of a symmetrical triangle is that it often puts you in a dilemma — both long and short positions seem viable, but you always end up on the wrong side.
So, do not enter before the breakout, and after the breakout, wait for a pullback confirmation before deciding whether to enter.
Second type: Wedge — A slowing rhythm is an opportunity, not boredom.
Many people mistakenly believe that a slowly converging trend indicates a lack of momentum, but the wedge is quite the opposite; it compresses market sentiment. Once a direction is confirmed after enough compression, it usually leads to an emotional release.
Especially when a descending wedge breaks upward, the first move is often a significant emotional spike; if you don't chase it, you'll miss the opportunity, but if you do chase it, you fear a false breakout — what to do? You can only rely on 'experience + position management'.
Third type: Flag / Pennant — A high probability opportunity for trend continuation.
If the market has just completed a strong one-sided move and then prices pause in a sideways or slanting manner, that is a high-probability 'flag consolidation'.
I actively wait for such opportunities; for example, when a strong coin forms a flag, I will place a limit order at the lower bound. Sometimes it drops down and I get filled, leading to a straight line rally.
Finally, the core understanding of price patterns: these patterns may seem like technical figures, but to put it simply, they express market rhythm and participants' expectations.
What you really need to grasp is not the 'pattern', but 'when the market wants to move again'.