Candle Patterns Part 4: Complex Bases, Tops, and Range Structures

In Parts 1–3, we looked at:

• Psychology of single candles
• Classic 2–3 candle patterns
  (engulfing, inside bar, morning/evening star, etc.)
• How these patterns interact with support/resistance and swing structure

From Part 4 onward, we take a step beyond clean textbook shapes and focus on:

Complex bases, complex tops, and range structures
that you will see far more often on real charts.

The core idea is still the same:

A “pattern” is not a single pretty bar,
but a summary of repeated attempts in a price zone.

1. First, see complex bases and tops as a picture

Let’s start with a high-level visual before going into details.

Tap to zoom

On the left, you see a complex base.
On the right, a complex top.

The key common points:

• No single candle looks like a “perfect pattern”
• But multiple candles repeat a similar message
• A structure forms around support or resistance as those attempts accumulate

That structure is what eventually becomes:

• Double bottoms/tops
• Head and shoulders
• Range highs and lows

In other words, complex bases/tops are the skeleton of larger chart patterns.

2. Complex bases: repeated failures to break support

Let’s zoom in on the complex base first.

Tap to zoom

2-1. Core idea

A typical complex base has:

• A prior down move into support
• Several attempts to push lower
• A series of shallower lows and failed breakdowns above support

In this zone:

• The selling side keeps trying to extend the downtrend
• But each attempt is met by buying and short covering
• Over time, “it’s getting harder to push price lower” becomes visible in price

2-2. Reading the structure at candle level

Simplified, a complex base usually shows:

• One or two strong bearish candles into the zone
• Followed by slightly smaller bearish bodies
• Pin-bar / doji-like candles with long lower tails
• Then higher lows with smaller bodies, sometimes turning bullish

Rather than trying to label a single bar as “the long setup”, we care more about:

“In this entire area,
are sellers repeatedly failing to extend the move?”

2-3. Where it matters more

Complex bases carry far more weight when they form:

• Just above a higher timeframe support
  (see Timeframes)
• After several swings down in the
  swing vs correction structure
• With volume showing
  stops + fresh buying in the lower part of the cluster

In those cases, a complex base can be a candidate area
for the start of a new upswing.

3. Complex tops: distributed highs below resistance

Now let’s look at the mirror image: the complex top.

Tap to zoom

3-1. Core idea

A complex top is essentially:

• A prior uptrend into resistance
• Failure to break through in one shot
• Several highs spread just below the level,
  followed by a turn lower

Here, in the upper zone:

• The buying side keeps trying to push higher
• Supply repeatedly shows up near the same area
• You see evidence that “it’s getting harder to push price higher”

3-2. Candle-level structure

A simplified complex top often includes:

• One or two strong bullish candles into resistance
• More candles with similar or slightly higher highs
• Increasing upper tails, shrinking bodies near the highs
• A final bearish reaction that pushes away from the zone

Instead of memorizing the exact shape, focus on:

How chasing longs, profit-taking, and new shorts
interact around the resistance band.

3-3. Why it’s not always “the top”

Even after a complex top forms:

• In a strong trend, price can
  • Pull back briefly
  • Then break the range and continue higher

So treating any complex top as “the final top” and
taking large countertrend positions is dangerous.

In practice, a complex top is more of a signal that:

• “Conditions are becoming less favorable for new longs here”
• Risk management for existing longs should be adjusted
  (size, leverage, stop placement)

4. Ranges built from complex bases and tops

Complex bases and tops naturally connect to ranges.

Tap to zoom

Many ranges are simply:

• Complex bases clustering near the lower boundary
• Complex tops clustering near the upper boundary

4-1. Range lows: clusters of complex bases

Near range lows, you often see:

• Several similar lows
• Tails and pin-bar-like candles
• Volume concentrating around the bottom of the range

Put together, this says:

“Every time price dips here, someone steps in.”

From a larger pattern perspective, those bases can be part of:

• Double bottoms
• Triple bottoms
• Range lows that later form the base of a breakout

4-2. Range highs: clusters of complex tops

Near range highs, you tend to see:

• Several similar highs
• Upper tails and small bodies
• Volume spikes as price taps the boundary

This tells you:

“Every time price pokes this area, supply reappears.”

Those complex tops can evolve into:

• Double tops
• Triple tops
• Head-and-shoulders tops

depending on the broader swing structure.

5. Compression and breakout: storing energy before the move

A common evolution of complex structures is:

Compression → breakout → retest.

Tap to zoom

5-1. What a compression zone looks like

In a compression zone, you’ll usually notice:

• Candle bodies getting smaller
• High–low ranges gradually narrowing
• A visible slowdown in the tug-of-war between buyers and sellers

It is essentially an area where:

“Neither side is willing or able to push strongly—yet.”

Compression often forms:

• On top of a complex base
• Just below a complex top

The picture in this chapter is the base case;
later, we’ll revisit compression again in
Failure Patterns and Traps
from a broader pattern perspective.

5-2. Breakout and retest

Once compression ends, you often see:

1. A wide-range candle breaking above or below the range
2. A retest of the former boundary
   (price revisits the old range edge)
3. If that boundary holds, a new trend leg may start

On the other hand:

• If price breaks out and then quickly falls back into the range,
• That failed breakout can itself be a strong trap and reversal setup.

We’ll connect this more explicitly with failed patterns
in later chapters.

6. Practical checklist for complex structures

Here’s a practical checklist I like to use
when working with complex bases/tops and ranges:

1. Do not hunt for a single “perfect signal bar”

   • Instead of waiting for one textbook pin bar or engulfing candle,
   • Ask: “Across this whole area,
     which side keeps failing to make progress?”

2. Always align with the higher timeframe

   • Is this complex structure:
     • Just noise on the daily chart?
     • Or sitting right at a key 4H/1D support or resistance?
   • Use Timeframes
     to keep the bigger picture in view.

3. Overlay volume

   • For a complex base:
     • Does volume cluster
       around the lower parts of the candles?
   • For a complex top:
     • Do you see volume spikes near the highs?

4. Respect position inside the range

   • Complex structures in the middle of a range
     are often less informative directionally.
   • Give more weight to structures that form
     near the upper or lower boundary of the range.

7. Next step: advanced candle patterns and traps

In this Part 4, we have:

• Stepped beyond small, clean patterns
• Looked at complex bases and tops
• Seen how ranges are built from these clusters
• Introduced compression → breakout → retest sequences

On real charts, you’ll encounter these imperfect, overlapping structures
far more often than textbook double tops/bottoms.

In the next chapter,
Candle Patterns Part 5: Advanced Patterns and Traps, we will:

• Study trap structures commonly found around complex bases/tops
• Look at fake reversal signals inside strong trends and failed patterns
• Examine candle-based traps across multiple timeframes

all from a candle-level perspective.

Again, the key question remains:

Instead of “Is this pattern pretty?” ask
“Which side is repeatedly failing in this area, and how?”