PRICE ACTION:
• In a downtrend, price action finds first resistance (1), where it reverses direction and goes upwards till finding support (2).
• Price action reverses direction from (2) and goes downwards till finding second resistance (3), which will be -around- the same rate of the first resistance (1).
• Price action reverses direction from (3) and goes upwards till finding second support (4), which can be higher or lower than the first support (2).
• Price action reverses direction from (4) and goes downwards till finding third resistance (5), which will also be -around- the same rate of both the first (1) and second (3) resistances.
• The pattern is completed when price action reverse direction from the third resistance (5) and goes upwards till it breaks the upper support at point (6).
• In a downtrend, price action finds first resistance (1), where it reverses direction and goes upwards till finding support (2).
• Price action reverses direction from (2) and goes downwards till finding second resistance (3), which will be -around- the same rate of the first resistance (1).
• Price action reverses direction from (3) and goes upwards till finding second support (4), which can be higher or lower than the first support (2).
• Price action reverses direction from (4) and goes downwards till finding third resistance (5), which will also be -around- the same rate of both the first (1) and second (3) resistances.
• The pattern is completed when price action reverse direction from the third resistance (5) and goes upwards till it breaks the upper support at point (6).