Chapter 8: How Does a Breakout Occur?
What we will cover in this chapter
- Ranges might be boring compared to the trending phases but we will see how every range is an explosion waiting to happen.
- Ranges are decision-making processes which create vacuums of supply above, and demand below, the ranges. When prices eventually move into these vacuums, they surge until supply and demand come back into balance.
- Failed breaks indicate that the vacuum of supply above or demand below the range has not yet formed.
- The dynamic nature of the failed break will give us clues as to how emphatic the counter-trend move is likely to be.
- Base-formation completion is the most important example of where a lengthy range is completed with an emphatic breakout, ...