Understanding Trends: Interior vs. Exterior

Introduction

• Topic: How ladders affect the chart and understanding deeper trends.
• Focus: Distinction between interior and exterior trends in a chart.

Types of Trends

Exterior Trends

• Control the confines of the entire chart.
• Known as legacy trends.
• Create moments of polarity.
• Examples: mark legacy global, local trends.

Interior Trends

• Work with more localized pieces of the chart.
• Related to smaller time frames and specific points of the move.

Defining Trends

Legacy Trends

• Work from outside of the chart inward.
• Identify legacy trends and mark accordingly.
• Example: Mark trends in different colors for clarity.

Local and Global Trends

• Legacy global trends and local trends within moves.
• Mark trends and adapt as the move progresses.

Questions for Trend Analysis

1. What is it trying to create?
2. How much viscosity does it have?
   • How many trends has it broken?
3. Has the final low been hit?
4. Has the final hold been created?

Analyzing Viscosity

• Viscosity equates to the strength or fuel left in the move.
• As more trends get broken, less viscosity is left in the move.

Understanding Final Low and Final Hold

• Chart architecture: Final low and final hold crucial for understanding moves.
• Process:
  • Identify final low: Lowest untested level in the chart.
  • Creation of final hold once the final low is hit.
  • Final hold defines the greediest untested level as the last support before a major collapse.

Practical Application

Steps:

1. Identify hold levels and trends on various time frames (weekly, daily, hourly).
2. Mark points such as back side, front side, and greedy levels.
3. Understand how untested levels (ladder points) affect the trend.
4. Follow the laddering process to detect where the final low is created.

Trend Calculation Example

• Start with higher time frames and move to lower time frames, highlighting untested and tested levels.
• Show how a perpetual ladder connects these points.
• Determine final low as the final untested level on the move.

Conclusion

• Key takeaway: Trend analysis involves recognizing final lows and holds, understanding viscosity, and working from exterior to interior trends.
• Future lessons will delve deeper into handling trends and making adjustments based on architecture insights.