In my experience in the markets, all price action follows 3 main market phases as below:
1) Consolidation: price ranges between two levels and consolidates between that area.
2) Expansion: Price action breaks out of the consolidation with high volatility making rapid impulsive and corrective waves.
3) Trend: The price action finally follows and market has a fixed sentiment where the trend takes place and the main direction of the financial instrument price goes.
1) Consolidation: price ranges between two levels and consolidates between that area.
2) Expansion: Price action breaks out of the consolidation with high volatility making rapid impulsive and corrective waves.
3) Trend: The price action finally follows and market has a fixed sentiment where the trend takes place and the main direction of the financial instrument price goes.
