How Many Legs Does a Market Have?

It sounds like a kid’s joke doesn’t it? Yet recognizing which “Leg” of a move the market is on can be very helpful in gauging how much “life” is left in the move. We all want to maximize the profitability of our trades, and counting legs can be one way of doing this. What is a “Leg”? Legs are a trading term used to describe the progression the market makes from rally to rally. Some traders refer to them as “waves”, “swings” or “pushes”. The more Legs a market has made in one direction the more likely it is that the trend is running out of steam. Conversely when a market begins making new Legs it is likely that there is a lot of strength behind the market and price will likely continue in its new direction. How to Identify Market Legs The Leg count begins when the market violates a previous support or resistance area. Identifying these support and resistance areas are easier if you use a range style bar such as the Mean Renko Bars which come standard with th
https://www.indicatorwarehouse.com/how-many-legs-does-a-market-have/