As the part of any natural process, market quotations have a cyclical character. Trend cannot avoid pullbacks, corrections, final phases, reversals and flat periods.
Not only definition of current status of market is important for a trader. “Prediction” (or, which is more precise, anticipation) of coming mood of any traded instrument is important too. What is crucial is to find a trading decision that will work exactly for you with the best possible estimation of risk and profit.
Method of Alexey Panasenko has proved itself as an efficient way to estimate status of market and find reliable trading recommendations. The author has been working with his own trading system for a long time and this system combines price action method with overlapping of Gann swings to the chart.
Both methods do not use indicators and consider the chart “as is” which contributes to fairness of estimation.
Grid of forecast:
Here is a brief example of estimation based on downward trend:
An ascending movement would be performed in a mirror fashion.
If there are no two consecutive crossings of swing support and resistance lines, it reveals a flat period of market.