1. The trend (inertia) in the price movement plays a very crucial role.

We will only
consider the trend reversal at the boundaries of the structural framework when
weakness is shown in the trend. No matter how weak the trend is, we never
expect a reversal of trend in between the structural boundaries until that time
when price breaks the trend violation pivot.

Look at the above images. In the first image, weakness is shown at the structural
boundary and hence we anticipated a trend reversal ( i.e price will break the trend
changing pivot). In the second image, weakness is shown by the trend in between the
structural boundaries. We anticipated a complex pullback (3 swing retracement),
rather than a normal pullback (single swing) and expected that the price will continue
to move in the previous trend after the complex pullback (CPB). Look that the trend
violation point is not broken and price continued its uptrend after the CPB.
2. Price always moves in the direction of strength and against the direction of
weakness.

WHEN PRICE IS IN BETWEEN THE STRUCTURAL SUPPORT AND

RESISTANCE :RULE 1 :When there is no weakness evident in the trend (uptrend/downtrend), we expect that the
trend will continue with a normal pullback (single swing).

RULE 2 :If weakness is shown in the trend, we expect a complex pullback instead of normal
pullback. We dont expect the trend change.

RULE 3 :When price is in a sideways trend/range, if there is no strength displayed at the range
boundaries, we expect that the price will continue to move in that range.

RULE 4 :When price is in a sideways trend and strength is shown on approaching the range
boundaries, we expect a range breakout. Then we watch the price closely for evidence of
weakness after the breakout.
1. If weakness is shown in the direction of the breakout, we expect that the
breakout will fail.

2. If weakness is shown in the pullback to retest the range boundaries, we expect

that price will continue in the direction of the breakout.

These are the four rules that must rotate in our mind when price is moving in between the
structural support/resistance. Now, lets look at the rules when price is interacting with the
structural support/resistance.
WHEN PRICE IS INTERACTING WITH THE STRUCTURAL BOUNDARIES
RULE 5 :When there is no evidence of strength shown on approaching the structural
support/resistance, we expect the TEST of the framework holds, i.e, we expect that the
trend will reverse.

RULE 6:When price is showing strength on approaching the structural framework boundary, we
expect a structural framework breakout. Then we watch the price action for clues of
weakness after the breakout.
1. If weakness is there in the direction of the breakout, we expect that the breakout
will fail and price returns to the previous framework.

2. If weakness is shown in the pullback to retest the structural framework boundary,

we expect that price will continue to move in the direction of the breakout.

These are the 6 rules that we use for predicting the high probable future direction.
Dont think about entries yet. We now have high probable future direction. Now we
need to find a low risk area to enter into the high probable direction