Dear Friends in Trading,
Markets are shifting...How I see it
The FIBRE shows it the best: Following the Master Pattern
Instead of a new trend phase, there is another contraction-2.
It also means there will be a new average price / fair market value as a reference.
What does this mean?
When, in the Forex Master Pattern framework, a second contraction phase appears instead of transitioning into the expected trend phase after expansion, it generally signifies the market is still indecisive and not ready to establish a clear directional trend.
Here is the detailed interpretation:
Market Remains in Uncertainty: The second contraction indicates that after the initial expansion (where price typically oscillates above and below the prior contraction’s average price), the market failed to break decisively into a trend. This means participants are still balancing buying and selling pressures, causing price to contract once again.
Additional Consolidation / Sideways Movement:
Instead of momentum pushing price into a sustained trend (Phase 3 in the Master Pattern), price coils tighter or enters another consolidation zone. This can be due to lack of strong institutional commitment or awaiting confirmation from macro or fundamental factors.
Potential for Trend Delay or Change:
A second contraction may delay the onset of the trend phase or signal weakening of the initial expansion move. It can precede either a continuation of the prior major trend once breakout occurs or signal a potential reversal if the pattern of contractions persists.
Signal to Traders:
Traders should interpret a second contraction as caution, refining their timing and waiting for a clear breakout of this second contraction zone before committing heavily. It suggests more buildup or accumulation of orders behind the scenes, making the eventual trend onset possibly more explosive or volatile.
Alignment with Market Structure:
The Forex Master Pattern's three phases—contraction, expansion, and trend—reflect natural market cycles of equilibrium, volatility, and directional momentum. Recurrence of a contraction phase means the market remains in the equilibrium/preparation stage longer than anticipated.
In summary:
A second contraction phase instead of a trend phase in the Forex Master Pattern implies ongoing market consolidation and indecision. The market is not yet committed to a trend direction, signaling traders to be patient and wait for a decisive breakout from this renewed contraction before expecting a strong trend move.
This insight is consistent with the Master Pattern’s fundamental principle: the market cycles through contraction (value formation), expansion (activation), and trend (profit realization). If the trend phase fails to follow the first expansion, additional contraction reflects the natural ebb and flow of market participant behavior, highlighting caution rather than immediate trending opportunity.
I sincerely hope my point of view offers a valued insight.
Thank you for taking the time study my analysis.
Markets are shifting...How I see it
The FIBRE shows it the best: Following the Master Pattern
Instead of a new trend phase, there is another contraction-2.
It also means there will be a new average price / fair market value as a reference.
What does this mean?
When, in the Forex Master Pattern framework, a second contraction phase appears instead of transitioning into the expected trend phase after expansion, it generally signifies the market is still indecisive and not ready to establish a clear directional trend.
Here is the detailed interpretation:
Market Remains in Uncertainty: The second contraction indicates that after the initial expansion (where price typically oscillates above and below the prior contraction’s average price), the market failed to break decisively into a trend. This means participants are still balancing buying and selling pressures, causing price to contract once again.
Additional Consolidation / Sideways Movement:
Instead of momentum pushing price into a sustained trend (Phase 3 in the Master Pattern), price coils tighter or enters another consolidation zone. This can be due to lack of strong institutional commitment or awaiting confirmation from macro or fundamental factors.
Potential for Trend Delay or Change:
A second contraction may delay the onset of the trend phase or signal weakening of the initial expansion move. It can precede either a continuation of the prior major trend once breakout occurs or signal a potential reversal if the pattern of contractions persists.
Signal to Traders:
Traders should interpret a second contraction as caution, refining their timing and waiting for a clear breakout of this second contraction zone before committing heavily. It suggests more buildup or accumulation of orders behind the scenes, making the eventual trend onset possibly more explosive or volatile.
Alignment with Market Structure:
The Forex Master Pattern's three phases—contraction, expansion, and trend—reflect natural market cycles of equilibrium, volatility, and directional momentum. Recurrence of a contraction phase means the market remains in the equilibrium/preparation stage longer than anticipated.
In summary:
A second contraction phase instead of a trend phase in the Forex Master Pattern implies ongoing market consolidation and indecision. The market is not yet committed to a trend direction, signaling traders to be patient and wait for a decisive breakout from this renewed contraction before expecting a strong trend move.
This insight is consistent with the Master Pattern’s fundamental principle: the market cycles through contraction (value formation), expansion (activation), and trend (profit realization). If the trend phase fails to follow the first expansion, additional contraction reflects the natural ebb and flow of market participant behavior, highlighting caution rather than immediate trending opportunity.
I sincerely hope my point of view offers a valued insight.
Thank you for taking the time study my analysis.
บันทึก
“I share only my perspective. In this industry, learning never ends, but progress comes when we learn from mistakes without repeating them.” - ANROC
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คำจำกัดสิทธิ์ความรับผิดชอบ
ข้อมูลและบทความไม่ได้มีวัตถุประสงค์เพื่อก่อให้เกิดกิจกรรมทางการเงิน, การลงทุน, การซื้อขาย, ข้อเสนอแนะ หรือคำแนะนำประเภทอื่น ๆ ที่ให้หรือรับรองโดย TradingView อ่านเพิ่มเติมที่ ข้อกำหนดการใช้งาน