- There may be an exhaustion of the current trend.
- Look to take profits.
- Consider taking a new trade in the opposite direction
- Warns if the exhaustion is only a pullback / consolidation
Finding Top
- Market is rising
- Numbers 1 to 9 appears above price.
- One or more C can appear
- When no further numbers and C appear, then the setup is complete
- It is possible that the numbers will vanish before reaching 9. This implies that the setup was interrupted.
Finding Bottom
- Market is falling
- Numbers 1 to 9 appears below price.
- One or more C can appear
- When no further numbers and C appear, then the setup is complete
- It is possible that the numbers will vanish before reaching 9. This implies that the setup was interrupted.
Features:
C9 can differentiate between trending and non-trending price action.
If close of the current C9 9th bar is between the High – Low of the previous completed C9 setup in the opposite direction, then the market is in a trading range.