Market is a very interesting when come to analysis and decision tree logic.
The whole premise about market it that the analysis has to be EITHER .. OR or NEITHER .. NOR.
It is EITHER UP OR DOWN trend and when it is NEITHER UP NOR DOWN trend, it has to be in the range bound side way trend.
This means we got only 3 things to consider UP .... DOWN ....SIDE WAY.
IF there are NO signs of any trend reversal set up forming or already in place, that mean the prevailing trend is intact.
IF there are signs of trend reversal forming or completed, that mean the probability of prevailing trend continue is reduced and unlikely to continue. This brings us to the next possible scenario EITHER OR.
eg. If the trend is UP,,, and the reversal set up is forming, the likely hood of the trend continue is low and the next course of action is EITHER DOWN OR SIDEWAY. The reverse holds true in a DOWN trend.
eg. If the trend is SIDE WAY, the next possible scenario is EITHER UP OR DOWN.
Everything is about logic commonsense and no rocket science or Quant mathematics.
Unfortunately human must always complicate things and make things very confusing.
Only when we strip all the noises and go back to basic, everything become clear and simple to understand
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