How to spot a trend reversal using my theory

As described before:

"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:
  1. the same kind of trap-zone will appear after the money-making zone
  2. 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
Some other related topics are summarized here.

1 comment:

  1. Tiger, thanks. But how do you define a trend reversal ?

    ReplyDelete