I am currently introducing myself to price action techniques by reading Steve Nisons 'Japanese Candlestick Charting Techniques'. In this, he says that an engulfing candlestick pattern is more significant if it occurs after a 'protracted move' since
However, I'm unsure of exactly what is meant by the term 'protracted move'. From the dictionary definition of protracted, I would assume that it means 'a move that has lasted longer than expected'. However, what is 'longer than expected'? How would you gauge how long a trend should last?
Can someone please help me understand this?
QuoteDislikedA protracted move increases the chance that potential buyers are already long (in an up-trend).
Can someone please help me understand this?