Trend, Range & Transition
Identify when the market is moving, balancing, or changing state.
A trend is a market moving directionally with expanding structure. A range is a market rotating between upper and lower boundaries. A transition is the messy period where a trend slows, balances, and either continues or reverses.
Trends often reward pullbacks and continuation entries. Ranges often reward patience near extremes and punish entries in the middle. Transitions are harder because old rules stop working before new direction becomes clear.
Identify the current state before choosing a setup. If price is making clean higher highs and higher lows, continuation may be favored. If price is overlapping and rejecting both sides, reduce expectations and wait for location. If price breaks structure after a long trend, prepare for a possible state change.