What Comes after a TB-F Ends?

The short answer to this question is, “something different.” The most distinguishing feature of a TB-F is that it identifies a region of price movement, which is an accelerated trend with a uniquely distinctive price pattern, one that is easy to recognize visually on a chart. After a TB-F ends, the pattern of price movement will be noticeably different. I've made references to these situations in a few places earlier in this chapter, but here I want to show an example, which, to the novice who may be unclear about what a TB-F really does and does not do, might look like a failure of the methodology.

Look at Figure 5.20, and for the moment, ignore the ellipse I've drawn in there. This is a weekly bars chart of IBM ...

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