Chart formation · ● neutral
Definition
The textbook label for this shape is ● neutral. The label describes the shape; it is not an instruction.
QuantZ does not claim this shape has predictive value. The detector reports that the bars met a definition; it says nothing about what follows.
The rule the detector applies
the upper line falling and the lower line rising, converging; no direction until it breaks
Thresholds are named by the option key the code reads, and the list below is every option this shape’s detector reads, taken from the detector’s source. The values are the ones it ships with, read at render from its defaults. Keys ending in ATR (or ATRPerBar) are distances in average true ranges over atrPeriod bars, and keys ending in Bars or Period count bars; the rest are ratios or counts that compare parts of the formation with each other. So the same numbers apply to a low-priced stock and to a high-priced coin.
- atrPeriod = 14
- reversalATR = 3
- minConvergenceRatio = 0.6
- flatSlopeATRPerBar = 0.05
- lineFitToleranceATR = 0.6
- railContainmentATR = 0.6
- rectangleParallelTolerance = 0.2
- minChannelHeightATR = 1.5
- maxChannelHeightATR = 12
- breakoutBufferATR = 0.15
- minLiveChannelRatio = 0.15
- maxHoldSpanRatio = 1
Prior trend
none · No prior trend is tested. The formation is defined by its confirmed pivot sequence, and its status (developing, confirmed, invalidated, expired) by closes against its own boundary.
Status and the measured move
A formation is developing until a close clears its boundary by the breakout buffer, then confirmed on the bar whose close did it; a close back through its invalidation level marks it invalidated, and a window that closes with neither marks it expired. A developing formation is never presented as confirmed.
A geometric projection: the pattern’s own height laid off from the breakout level. It is a construction on the chart, not a forecast.