1. Momentum
News hits. Volume expands. Price moves fast.
This is where amateurs pile in.
Professionals?
They wait.
2. Contraction (The Opportunity Zone)
Stocks digest gains.
Ranges tighten.
Volume fades.
Volatility compresses.
3. Expansion
Breakout → range expansion → emotional buying.
Now you sell into strength.
Buy tight. Sell loose.
After decades in the market, I’ve learned that trading is less about prediction and more about recognizing cycles.
When you train your eye to spot contraction, you stop chasing — and start positioning.
What contraction looks like:
• 10–25 day consolidations
• Higher lows
• Range tightening
• Declining volume
• Support respecting the 10 / 21 day
Never Chase Moves
