Episode 6: Initiative and Response
Building on the previous episode: when price moves out of the range, who is moving it?
• The initiator: pushes price away from value with strong volume.
• The responder: pulls it back toward value.
🔍 How can we distinguish a genuine breakout from a false one?
• If the market accepts staying outside the value area (with closes and volume supporting it), the breakout is usually genuine.