Market direction, transitions, and highest probability trades during the condition changes

The market can only be moving 3 ways: up, down, or sideways (flat). From each of these directions, it could transition into any other or continue the current direction.

When you start your day, its important to know where the market has been, where it is now, and monitor for where the highest probability is that it will go. I use a chart that I developed to help me recognize what the highest probability positions are during market condition changes and transitions.

Current market condition also means previous structure. For example, market has been up trending since 3am, its 8am now, and we just had a failed reversal to the downside, with the market continuing up; this is an UP to UP.

An UP to UP and DOWN to DOWN means that there was a failed reversal move or horizontal move and the trend is continuing; TREND CONTINUATION.

UP to DOWN is a TREND REVERSAL
FLAT to UP is a BREAKOUT / TREND FORMATION
etc

For each of these transitions there are higher probability trades that others. For example, in and uptrend followed by an uptrend, the higher probability trend is SELLER FAILURE rather than a 123 REVERSAL.

Here are the abbreviations:
BO- Breakout
PB- Pullback
SF- Seller Failure
BF- Buyer Failure
TR- Trading Range
FBO- Failed Breakout