My theory/opinions on the stock price development

Here is a short summary and key points:

• The stock price is always moving in three ways: trend UP, trend DOWN, and no trend fluctuation
• The stock price movement pattern can be classified as two zones: trap zone and money-making zone
• Trap zone can be further classified as bullish trap zone and bearish trap zone.
• The price movements always follow this pattern: trap zone -> money-making zone and then another trap zone. It is a regular repeatable pattern, but could be combined together to form a complex one zone.
• A reliable top and bottom formation needs a successful transition from either a bullish trap zone to a bearish trap zone, OR, a bearish trap zone to a bullish trap zone. In general, to complete such a transition, at least 6 UP/DOWN waves are required.
  
• After the trap zone, the expected money-making zone should be measurable. Otherwise, a trend reversal could happen. For example, the current rally since march can be classified as this case. After the trap zone, the expected move is only about 30 points lower than the trap zone, which clearly shows the weakness of the bearish force. Please refer to the chart below.
  

For other technical analysis tips, please refer to the collections here.

I hope you all can learn something from the blog ! It refreshes my thinking as well while I am writing and sharing.

SVA also breaks out. Here is the link to the initial call.