Sisse,
regarding Floor ⇔ Flip ⇔ Top
..would it be reasonable to assume that whichever extreme is reached first (Floor or Top) a swing to the other extreme will eventually play out at some point over the following months?
(a) Yes, (in theory).
(b) No, it's more complicated than that.
(c) Yes, but only if the instrument initially goes against its 'path of least resistance', e.g. EURUSD pushing higher to its top before its floor.
regarding Floor ⇔ Flip ⇔ Top
..would it be reasonable to assume that whichever extreme is reached first (Floor or Top) a swing to the other extreme will eventually play out at some point over the following months?
(a) Yes, (in theory).
(b) No, it's more complicated than that.
(c) Yes, but only if the instrument initially goes against its 'path of least resistance', e.g. EURUSD pushing higher to its top before its floor.