In the logic of the Chaos Theory, the formation pattern is equivalent to the bricks you use to build a house.

I personally think that the method of drawing type is relatively simple and easy to understand. Without further ado, I will get straight to the teaching.

Only the above 4 situations can be obtained from the inclusion processing of three consecutive K-lines.

1. Rising K-line reaches new highs but not new lows

2. The falling K-line forms a new low but not a new high

3-top pattern: the high and low points of the middle K-line are higher than the K-lines on both sides

4 bottom pattern, the middle K-line low point, the K-lines on both sides of the average hell

Destruction of top and bottom pattern:

After the top pattern is formed, if the next K-line is a rising K-line and breaks through the high point of the top pattern, it is regarded as the destruction of the top pattern.

As for the bottom pattern, I will not go into details here.

Without the top pattern, there is no top, and vice versa, there is no bottom. The pattern is prepared to divide the structure of the following pens.

After the top pattern is established, there are only two situations. The first is that it continues to become a relay. The second is that it continues to become a pen.

In fact, if you zoom in on the subsequent structures of the top and bottom formations, you will find that they are sub-level or sub-sub-level head and shoulders tops or head and shoulders bottom structures. It's amazing!