How far can the market proceed in one direction before a turn would be very likely to take place?
This was the very idea behind developing the energy bands.
There is another way of calling a high probability turn, and that is the volatility breach on the Consolidation indicator.
The first recent example shows a beat 3 days after the breach, and the reaction off of it.
The second example had the beat the next day.
There are two examples on the following snap shot. One was beat 3 days later, the other the next day.
There are countless examples, but what I’m trying to say is to find David Moser’s Choppiness Indicator and use my 7,1,7 settings.
It even works with a 4-H chart.
The close: 2nd pop into the Purple Brain
Mambo #5 was the start of Wave 5 up
The magenta line is the 36-pip failure beyond the Boogie
And to answer the question in the title,