medium · Volume Price Analysis
How does the 'Law of Cause and Effect' link consolidation phases to trends?
- Cause and effect applies only to climax events, not to consolidation.
- The duration and intensity of consolidation determines the strength of the trend.
- The consolidation is simply the result of a prior trend becoming too strong to continue.
- Trends always last exactly three times as long in duration as the preceding consolidation phase.
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