Chapter 16: Type-3 endings – Ranging, Time and Size
What we will cover in this chapter
- Type-3 tops are identified by lengthy periods of volatile ranging and can be characterised as wars between the competing forces of supply and demand.
- Type-3s never start out as type-3s but morph into these extremely difficult environments where the question really should be asked whether one should have a position at all.
- Type-3 bottoms represent the classic base formation. These are the foundations of bull markets once new sources of demand become apparent. As such they can be characterised as ‘sleepers’.
TYPE-1 ENDINGS ARE symptomatic of at least a temporary dramatic blowout in the dominance of supply over demand or vice versa. Type-2 endings ...