CHAPTER 02 · LESSON 02

Uptrend, downtrend and range

Uptrend, downtrend and sideways range are different observable states. They should not be explained with the same assumptions.

Directional states

An uptrend usually preserves rising structural points; a downtrend preserves falling structural points. The label remains provisional until the relevant structure is tested.

Range state

A range repeatedly contains price between recognised boundaries. Movement inside it can be large without becoming a sustained directional trend.

Avoid forced labels

If evidence is mixed, describe the uncertainty instead of choosing a direction for the sake of having a conclusion.

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