A possible whisper of our future in the market.

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The general rules in consolidation is to pay heed to the first trade event by a system and the first trend reversal event by a system. All other "events" are noise.

First trade event suggested a cover of the longs.
First trend event suggested a return to the Bear trend.

This all happening in consolidation. Need the following to occur to neutralize the suggestions.
Three consecutive closes outside the consolidation boundaries WITHOUT a returning close into the boundaries.
If the prices close OUT and then sell off the following day to close back in previous boundaries - all it has done is extend the consolidation range up to the new high.
This type of behaviour is what generates the bear/bull flag.

Penafian

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