We assess the likely future trend direction with the following principles
First principle – We expect a directional trend to continue in its current state until the next S/R barrier, unless displaying evidence of weakness.
Second Principle – When an up or down trend shows weakness we expect a higher likelihood of a complex correction rather than a reversal until such time as the market shows both price acceptance and strength in the new direction.
Third Principle – A sideways trend within the framework is expected to continue in its current state, unless displaying evidence of strength towards the range boundary.
Fourth principle – When a sideways trend shows strength towards the range boundary, we expect a break of the boundary.
Fifth Principle – We expect our S/R framework to hold unless strength is displayed approaching the S/R boundary.
Initial market Analysis Process
- Define Structure
- Define Trend
- Identify Strength and Weakness
- Identify Future trend direction
- Visualise future Price Action
- Identify Areas of opportunity
Setups
There are five primary setups
TST, BOF, and BPB at S/R levels and two with trend setups, Pullback and complex pullback.
