When the trend that carries an expansive rally breaks- my baseline bias becomes (in order of expectation):
1) a consolidation (range)
2) a reversal/downtrend
3) a reclaim into continuation
Nuance obviously needed based on environment.
Ex. Order of expectancy shifts in risk-on environments where reclaim/cont. moves to most likely scenario.
When in doubt. Default to the above. It's saved me a lot of money (and stress).
