Consolidations are range bound.
The rules for a breakout (impulse) is to retrace it to confirm the exit, and then strike the low signaling the continuation...the beginning of a trend.
Notice the red arrow.
The impulse exited a range of a trending zone, but the retrace failed and there wasn't a continuation.
That is why to wait to strike bullish reversal....
The rules for a breakout (impulse) is to retrace it to confirm the exit, and then strike the low signaling the continuation...the beginning of a trend.
Notice the red arrow.
The impulse exited a range of a trending zone, but the retrace failed and there wasn't a continuation.
That is why to wait to strike bullish reversal....