HL = Higher Low, LL = Lower Low

HH = Higher High, LH = Lower High

EQ = Equal High, EL = Equal Low

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So for a bullish trend, price pushes makes a high then retraces without breaking the previous low then pushes again for a new high then retraces again for a higher low, then makes a higher high, then again a higher low and so on. The inverse is true for a bear trend.

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For a bullish trend the following is usually the pattern:

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1. Price pushes to make a high
2. Price then retraces but doesn’t close below the previous low
3. Price pushes higher to break the high made previously
4. Price then retraces to make a higher low than made previously

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On live charts and candles it doesn't always look this clean of course. 

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• Can you identify the support and resistance in this image of Gold below?
• Is it bullish or bearish or a range? 
• What are the HL, LL, HH, LH, EQ or EL?

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Take a second and try before scrolling past the image for the answer:

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Here is what you should have analyzed: We had a range break (below resistance) by this candle closing outside the range then LL LH.

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To summarize: 

A range is an area between a support level and a resistance level. In a range, you’ll find price action bouncing up and down before breaking above or below into the next range.

Price moving about within a range is known as ranging or consolidating.

A support is an area that holds price from closing below a particular price level and so price rejects in the opposite direction.

In bullish market structures, each new support formed is higher than the previous support level as price actions seeks to create new highs (higher highs)

A resistance is an area that holds price from closing above a particular price level and so price rejects in the opposite direction.

In bearish market structures, each new resistance formed is lower than the previous level as price action seeks to create new lows (lower lows)

In a bullish trend, support levels get respected and resistance levels break.

In a bearish trend, resistance levels get respected and support levels break.

Eventually, all support or resistance levels get broken — either due to volume or a change in trend - the longer this takes, the stronger the move.

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