Module 1: Introduction to Market Geometry
Market Geometry
This chapter introduces the basic geometry behind market movements, using the x-axis and y-axis to illustrate triangles and price patterns. The foundation of all patterns in this course is based on geometric structures. Understanding the role geometry plays in price formation is critical for identifying key trading opportunities.
Symmetry in Patterns
Symmetrical patterns indicate balance and potential market stability. When price movements form these patterns, they often present more reliable trading opportunities.
"Symmetrical triangle formed by price, offering a clear trading opportunity."
Asymmetry in Patterns
In contrast, asymmetrical patterns, which have uneven sides, suggest volatility and instability. These often show long-range bars, signifying extreme market movements that might signal risky trading conditions.
"An asymmetrical pattern with long-range bars, showing an extreme expansion in a trending market."
Lesson Summary
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Symmetrical patterns provide more stability and reliability for trading.
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Asymmetrical patterns often suggest volatile market conditions.
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Look for symmetry in the patterns to identify the best trading opportunities.