"Any price movement in any time frame can and only can be decomposed into one unique combination of trap-zones and money-making zones !"
So, if the trend continues with the momentum, then only two patterns are shown:
- the same kind of trap-zone will appear after the money-making zone
- the same kind of money-making zone will appear after the trap-zone
Otherwise, these will be viewed as some WARNING signs for a possible trend reversal.
In order to confirm a trend reversal, two conditions are necessary and are required as well:
- A transition between the trap-zones happens
- A transition between the money-making zones happens
Tiger, thanks. But how do you define a trend reversal ?
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