They’re actually about how price reacts inside the range.
On the left → same structure failing:
• rallies stall • highs get sold • range resolves lower
That’s a downtrend.
On the right → same structure behaving differently:
• pullbacks hold • ranges resolve higher • dips get absorbed
That’s an uptrend.
Same market behaviour. Different outcome.
The shift doesn’t happen at the breakout - it starts when pullbacks stop doing damage.
Spot that change early and you’re no longer chasing moves, you’re positioning before they expand.
Simple idea. Hard to execute.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
Most people think trends are about direction.☂️
They’re actually about how price reacts inside the range.
On the left → same structure failing:
• rallies stall
• highs get sold
• range resolves lower
That’s a downtrend.
On the right → same structure behaving differently:
• pullbacks hold
• ranges resolve higher
• dips get absorbed
That’s an uptrend.
Same market behaviour.
Different outcome.
The shift doesn’t happen at the breakout -
it starts when pullbacks stop doing damage.
Spot that change early and you’re no longer chasing moves, you’re positioning before they expand.
Simple idea. Hard to execute.