The Master Swing Trader (Alan Farley, 2000)
Trend-range axis Price movement demonstrates both directional trend and nondirectional range. Range motion alternates with trend movement. Trends reflect a state of positive feedback where price movement builds incrementally in a single direction. Ranges reflect a state of negative feedback where price movement pulses between minimum and maximum points but does not build direction. Trends reflect an upward or downward bias. Trends change and reverse at certain complex points of development. Ranges reflect their repeating patterns, bias for continuation or reversal, and the trend intensity expected to follow them. Movement out of ranges continues the existing trend or reverses it. Range volatility peaks at the interface between a trend climax and the inception point of a new congestion pattern. Range volatility ebbs at the apex point just prior to the inception of a new trend. High range volatility = wide range bars, high volume...
