How are Market Configurations used to determine Market Direction?
Thanks to Zahorchak, the major Market Configurations have been rather neatly classified into groupings that lend themselves to Market Direction identification. We take Zahorchaks work a bit further by labeling the groupings in such a way as to correspond with 5 major Stages of Market Direction, as follows: • Stage 1 Uncertain, but probably just a Bear Market rally; • Stage 2 Uncertain, but possibly the 1st sign of the formation of a new Bull Market; • Stage 3 Bullish: 2nd sign of the formation of a new Bull Market -or- We are experiencing Bull Market conditions; • Stage 4 Uncertain, but possibly the 1st sign of the formation of a new Bear Market, and; • Stage 5 Bearish: We are experiencing Bear Market conditions.
