3. Connect the upper left corner with the lower right corner. If the line
overlaps with the price bars, you have found a reliable downtrend.
As you see, the market is like a sea wave and it keeps on going up and down.
Sometimes the dips are too deep to consider it a reliable uptrend, or the rallies
are too high to consider it a reliable downtrend. Knowing the “trend reliability”
is the key to discover the real and reliable trend. So, how do we determine if
the trend is reliable, or whether it is better to stay off ? The best way is to forget
any lagging indicators, but to use pure price action.
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