Most traders misunderstand price action by thinking it bounces between two parallel lines. Instead, focus on identifiable highs and lows: if they're moving higher, the trend is up; if lower, it's down. This simple sequence tells you whether a market is trending, choppy, or about to reverse.
is not 2 parallel lines and the price bouncing from the upper and lower boundaries. That's totally untrue. In my opinion, it's better to use the terms like lows and highs because price might be having just some different lows and highs, but you can always identify when the price is pivoting. These are the highs, these are the lows. When I identify the trend, I just look at the highs and the lows because most of the time the chart is trending, but sometimes there might be the moment where the trend is inconsistent and it's choppy. But you see the lows are getting higher, the highs are getting higher, but here you have some indistinct knowledge about whether it's going to be going down, creating the lower high, or maybe it is looking for the continuation for even higher high.
