Primary Trend with Secondary Trend
Contrasting the change from primary trend to consolidation, the opposite pattern presents a problem in interpretation. When a primary trend suddenly undergoes a huge price gap in a direction opposite the trend, does it mean the trend is over? In the previous example, volume and momentum confirmed the likelihood that the primary trend was done.
However, a similar pattern can also be found when a primary trend is interrupted only by a secondary trend, with a likely return to the primary trend. For this, a set of clear signals has to forecast this price pattern, rather than signaling the end of the primary trend. The chart in Figure 15.7 provides an example of the interruption of a primary trend by a secondary ...
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