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>> in fact the longer we move sideways, a presumption of upward resolution makes more sense <<

Why is this so? I thought that I had read somewhere that shorter consolidations favored continuation of the prior move, while longer consolidations were more suggestive of an impending reversal. I think that Teresa Lo likes to see "rest periods" of less than 6 bars in a trend to show that the trend is still strong. I believe that longer rest periods are considered dangerous to the health of the trend (Nic - help me out here if I'm not conveying "Lo-ism" properly). The psychological affects of long vs short consolidations on the Market are not obvious to me. Anyone else have an opinion or some book knowledge to impart?


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