Definition
The lead-in phase is the price action that comes immediately before a chart pattern forms. It is the run-up, or run-down, that establishes the trend the pattern will either continue or reverse.
The lead-in is not part of the pattern itself, but it supplies essential context. The same shape can carry a different meaning depending on whether the price entered it from an uptrend, a downtrend, or a long sideways drift.
Why it matters
How it works
To use the lead-in phase, a trader examines the trend that precedes the pattern. A flat base that follows a steep decline behaves differently from the same base that follows a long advance: one suggests accumulation and a possible bottom, the other can signal a pause inside an existing move.
This context shapes how the pattern is traded. The lead-in helps a trader pick the more probable breakout direction and decide where confirmation, entry, and stop levels belong, rather than treating the shape in isolation.