| State | Description | Clues | Your Job |
|---|---|---|---|
| Trend | Price is moving in one direction with momentum | HH/HL (up) or LL/LH (down) | Ride the move with pullbacks |
| Range | Price is bouncing between two levels | Equal highs/lows | Fade extremes (mean reversion) |
| Expansion (Breakout) | Price breaks out of range with strong move | Wide candle, increased volume | Enter breakout or pullback |
| False breakout followed by sharp reversal | Traps traders | Trade in direction of the reversal |