Chapter 5 ended with a level map for each coin and one question: what condition is each coin in, and which setups does it allow? Label each coin from its map as advance, decline, range or unclear, flag high volatility, and let the label list setups you may check.
A bull market sounds like permission to buy, and a label is easy to read that way. It works closer to the reverse: it shrinks the list of plans you may write, sometimes to nothing. What it can do is filter plans by this manual's own rules, so a breakout plan is not applied to a range, where a trigger can fire and fail back inside. The label goes into the plan as a condition, with the closed-candle change that ends it. Two careful traders can label one chart differently, and this manual cites no test that a label predicts direction or that any setup does better under one.
Chapter 5's four words stay the words of record. This manual files them: advance and decline are trending, up or down, range is ranging, and unclear is sit-out. That filing is this manual's labelling, not a published standard. Sit-out means what the market cycles page says of unclear: any plan that needs a trend passes. If you would rather pass every setup on an unclear coin, write that as your own stricter rule. High volatility is not a fifth phase. It is a flag on any label, measured as ATR(14) divided by price, as a percent, on the decision chart. No linked page gives a cutoff for high. Write yours before you read the number, so it cannot be tuned to the coin you want.
| Line | What you write | Test it must pass |
|---|---|---|
| Coin and map | The symbol, the date, the trend word from your chapter 5 map and the context chart it was read on, and whether the map's change condition has occurred on a closed candle since. | Does the word still stand against its own change condition? |
| Label | Advance (trending up), decline (trending down), range (ranging) or unclear (sit-out: a plan that needs a trend passes), and the closed-candle change that ends it, from the map. | Would someone else file your word the same way? |
| Volatility flag | ATR(14) divided by price on the decision chart, as a percent, your cutoff for high, and high or not high. | Was the cutoff written before you read the number, and is the number from your chart and not a scanner's list? |
| Eligible setups | Each setup the table below names for your label. For a page that names no label, list it only if you can copy its market-fit sentence and point to the fact on your map or chart that matches it. On an unclear coin, the copied sentence must also need no trend. | Does every setup have a label the table names, or a copied sentence and a matching fact, beside it? |
| Pass | For a coin with no eligible setup, "pass:" and its label. | Is any coin left with no setup and no pass line? |
Objectives
This step supports one decision: which setups, if any, each mapped coin may be checked against. It comes here because the map says where an idea would be wrong and the label says whether an idea is allowed at all. It uses each coin's trend word and change condition from chapter 5, and the ATR(14) on your chapter 4 decision chart.
- File a map's trend word as a label and keep what would change it.
- Measure ATR percent on the decision chart and compare it with a cutoff you wrote first.
- Find the sentence on a setup page that names the market it fits.
- List the setups a label makes eligible, or write a pass.
The label is read on the context chart. A setup's trigger is read on the decision chart, which chapter 8 takes up. Listed here means may be checked: the setup page's Conditions section decides the rest. Each page below says in its own words which market it fits. The table quotes the part that names a market; copy the page's full sentence, with its other exclusions, before you list a setup. The flag changes no list. It is there so a new plan's size is recomputed from current ATR percent, as the volatility page shows. The stop itself comes from the chart.
| Setup | The market its own page names | Label it names |
|---|---|---|
| Breakout continuation long | A chart in an advance on the context timeframe. A range or a decline is a reason to pass. | Advance |
| Falling wedge breakout long | Lower highs and lower lows inside the wedge during a decline, not inside a range. | Decline |
| Oversold bounce long | A decline that still shows a lower high you can mark. A fall with no lower high gives no plan. | Decline |
| Trendline break retest short | A trend that respected one line for some time and then closed beneath it. A sideways market does not fit. | None named |
| EMA 55 resistance break long | A coin pushing up into a band from below. A sideways market where price keeps crossing the average, or an average far from the band, does not fit. | None named |
| Ending diagonal breakdown | A coin that has trended up for some time and grinds higher with less force. A coin that has gone nowhere for weeks does not fit. | None named |
| Failed breakout wick short | A band with a clear history. The context chart must not have closed above the band. | None named |
| Wave-one dip buy | A clean first leg and a pullback toward a zone you can mark. | None named |
| Fifth-wave exhaustion short | A coin that rose in countable swings and now stalls at a marked resistance band. | None named |
An advance lists one setup by name, a decline two, and a range and unclear none. Five pages say a range or a sideways market does not fit, so a ranging coin has no setup by name. That is a limit of these nine pages, not a claim that no plan could be written for a range. Only the breakout page ties its label to the context chart; the falling wedge and oversold bounce pages name a decline without naming a chart.
Hypothetical walkthrough: four coins, one tempting breakout, one pass
Hypothetical walkthrough. Invented prices and an invented outcome, chosen to teach the decision. Not a recorded trade, and not evidence of how often this setup works.
Assume four coins, A to D, each mapped as in chapter 5 on a weekly context chart and a daily decision chart. The reader's cutoff for high is ATR(14) divided by price above 5% on the daily chart, their own number, written first.
- Coin A. The map says advance, and no weekly close since its date has fallen below the last swing low, so the word stands. ATR(14) is 2.4 on a price of 96, which is 2.5%: not high. The breakout continuation long is named for an advance. The EMA 55 page names no label. Its market-fit sentence is a coin pushing up into a band from below, and A's last daily swing runs up toward the resistance band on its map, and the daily 55 EMA sits near that band, so the reader lists it. How near counts is a Condition the plan checks in chapter 8. Eligible: breakout continuation long and EMA 55 resistance break long.
- Coin B. The map says advance and still stands. ATR(14) is 7.9 on 130, which is 6.1%: flag high. Eligible: the breakout continuation long. The flag changes nothing in the list.
- Coin C. The map says range, and today's daily candle closed above the top of its band. The reader wants the breakout continuation long. That page lists an advance on the context timeframe as a condition and a range as a reason to pass, and C's context chart says range. The daily candle does not meet that requirement. Eligible: none. They write "pass: range".
- Coin D. The map says unclear, so any plan that needs a trend passes. No page names unclear, and no page that names no label has a market-fit sentence that needs no trend and matches D's map. Eligible: none. They write "pass: unclear".
The outcome was chosen to show a label that costs a tempting trade, a flag that changes no list, and a pass.
Reading list
- Market cycles: labelling with a rule written first, on closed candles, with unclear as a fourth label, and the page's own statement that it names no setup for any phase.
- Volatility: ATR percent for comparing coins, and why a more volatile coin gets a smaller position. The volatility scanner is a prompt; ATR percent on your chart is the manual route.
- Trade setups: the nine setups, each with its market fit in its opening and its Conditions section.
- Breakout continuation long: requires an advance on the context chart and treats a range or a decline as a reason to pass.
- Falling wedge breakout long: lower highs and lower lows during a decline, not inside a range.
- Oversold bounce long: a decline with a lower high you can mark, and no plan without one.
For the other six, read the opening and the Conditions before you list one, and copy the sentence you rely on.
This chapter cannot settle whether any listed setup's own conditions are met on the chart today, or which coin deserves a plan. It ranks nothing: coins A and B above carry the same label and the same setup, and nothing here separates them. The question to carry forward: of the coins with a setup on their list, which deserve a plan today? Finding coins to trade uses volatility, volume and funding to answer it.
You should now be able to
- File a map's trend word as a label, check its change condition against closed candles, and say what would end it.
- Measure ATR percent on the decision chart and compare it with a cutoff you wrote before looking.
- Find the sentence on a setup page that names the market it fits, or say the page names no label.
- List the setups a label makes eligible, with a copied sentence and a matching fact for any page that names no label.
- Write "pass" beside a coin whose label makes no setup eligible.
- Produce: your condition label for each mapped coin, with the setups it makes eligible or a pass, using the table at the top of this page.