This was taught to me by ICT. It's how markets work.
the four major market profiles are Trend, Reversal, Retracement, Consolidation, which then breaks out and starts a new trend and the cycle repeats.
Pretty self explanatory. First you have a trend. Nothing lasts for ever, so that trend goes away and reverses. The reversal will then have to retrace just because markets go up and down. Then the market will settle into a consolidation as orders are paired and will pave the way for the new trend.
follow me on twitter: twitter.com/BallerTrader
the four major market profiles are Trend, Reversal, Retracement, Consolidation, which then breaks out and starts a new trend and the cycle repeats.
Pretty self explanatory. First you have a trend. Nothing lasts for ever, so that trend goes away and reverses. The reversal will then have to retrace just because markets go up and down. Then the market will settle into a consolidation as orders are paired and will pave the way for the new trend.
follow me on twitter: twitter.com/BallerTrader
