2. Every Market: always in either Trend or Trading Range

Breakout: high of the bar goes above the high of the prior bar.

Pullback: low of the bar goes below the low of the prior bar.

Bull trend begins with breakout.

Pullback results in a transition from a breakout phase (strong) of a trend, into a channel phase (weak) of the trend.

Weaker trend is still a bull trend.

Eventually, there will be a bear flag, it will turns into a trading range.

After the trading range, there will be another break out.

• either a resumption of the bull trend.

• or a reversal of the bull trend.