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Hey all,
I know Al does his best to discern a small pb trend with many criteria. Tightness, PB's last only 1-3 bars, Gaps, PB Depth <2 times avg. bar size etc.
But I feel like a lot of these things also apply equally to a leg in a trading range. I'm watching the video course again and seeing his examples of small PB trends / tight channels. And some of those even have negative gaps, or they have bigger than avg. PB's, or they break out of a TR - Al says in other videos that breaking out of a TR usually has more chance of TR price action in the future i.e. a TR day type.
So his SPBT are not even perfectly adhering to all his criteria. So in my mind these two concepts overlap a lot. I know this is probably the nature of a SPBT and is why some people hate them, but still...
Is there maybe another variable that you use to distinguish the two that I'm missing?
Fair question. Remember that prices are fractal. Additionally the most important aspect is context, however there are 2 critical factors. Context interprets "what is to the left". When you indicate trading range, what you are describing is that either on this timeframe, or a higher timeframe, there are previous participants who have structured their trades and you expect resistance in this area. Simple. However, consider SPB as a local variable within the current price movement, what is "happening now". Both aspects combine.
As an example, if one is in a trading range, you may find that within the SPB all of a sudden a magnetic move to the resistance area happens. Of you may find that the bars become smaller as one approaches the resistance areas.
In short, both aspects can be true. However, if things to the left "are clear skies ahead", within a SBP trend, one would expect prices to continue higher, even after the 1st correction.
Hopefully helpful and good trades to you!
