Minor Structure + Momentum: Part Two
2024-11-26

In this section, we will combine minor structure and momentum, along with  MC  and Bollinger Bands.

We observed an uptrend, and then suddenly Candle "A" appeared. This indicates that the previous candle is a strong candidate for becoming an MC for us. Now, we need to analyze the market for signs that it may be transitioning into a ranging market.

As we see:

- Price movement from #1 to #2, is the same as #2 to #3. No momentum in a specific direction which is a clear sign of a ranging market. It confirmed MC for us.

- The movement from #3 to #4 has just reversed the previous bearish candle. Nothing much. Again we are inside a ranging market.

- Movement from #4 to #5 is equal to #5 to #6. Again it's ranging! Awesome! 

- Candle #7 is good for ranging, and we expect such sharp movements in a ranging market. But we do not expect a continuation of strong downward movement after it. If such a thing happens and could break both the low of candle #7 and the LTP level, we expect the price to continue a downtrend and create a stBoS downward in the future.