ok i will post this image and elaborate on this later.
Let's see how many figure this one out,the phenomenon is staring right there in your face.
Second image also will be explained later
First image in the quotes Explained
What has been circled in the first image is a classic double bottom as they would say in technical Analysis.No i for for most part don't trade the double bottom or Double tops but i trade the underlying reason behind the formation of Double tops or bottom.
What i have drawn in the first image essentially contains a strong downward move marked by an orange arrow,followed by a pullback in purple arrow.And the point A where the pullback stops and blue arrow when trend tries to resume but has trouble at the previous low,now a tough guy traders who knows what he is doing the second test can always be bought or sold.
The circled area includes the red up move which is happening from the double bottom.And finally the price stop at the same trouble area of A,(remember our rule A will cause trouble,refer to supply and demand reasoning as well),price again sell off,but this time they are testing the bottom for third time.They break it and form an entire downwards movement to the low as shown in that image.
Which all brings me to another striking observation,price behaves consistently across all frames of reference.
What is happening in red circle when the first purple arrow goes up, can be easily equated to the up move B to C (in the same image when green wave down happened)which happens way after wards and somewhere in the orange down move the A-B is happening.
Think of this as the ability of price to behave the same way in a microscopic level.
You can as easily consider what happened from A-B and B-C as a zoomed in version of the orange down move and purple up move.
And the very same thing is happening down there (in the first image see where B is) at Point B there is a last small A-B in there and B-C
when price is making a double bottom at B ans starts a B-C it can be considered an uptrend.
Sure it can be considered as an attempt to to start an up trend but for me to fully consider B-C 's ability to start a new trend B-C must start from a double bottom
Remember always.
Double Bottoms and Tops are Prices way to cancel the last up move or down move,they are searching for more orders ,Trend always tries to resume again,always.
A higher highs and higher lows signify an up trend.
And Lower highs and lower lows signify a down trend.
For me to consider any sample down trend broken on a microscopic level,last series of lower lows(double bottom cancels lower lows) and last series of lower highs(when last impulse wave gets taken out remember when AB=BC for the first time) must be broken ,the opposite is true for an up trend.
For me to consider an up trend established the last lower high must be taken out(reached) last lower low canceled,(double bottom)
A new higher low must be formed
Second Image in quotes is pretty self explaining
Trend at C is trying to resume its course,
Trend remains in place until canceled.