You know the feeling.
The setup looks perfect. Momentum’s building. You hover over the button — but you freeze.
A few minutes later the market rips in your direction… and you’re left staring at the screen, whispering the same three words every trader says at one point or another:
“why didn’t I buy.”
You didn’t lack information. You didn’t lack tools. You lacked certainty.
Because deep down, you didn’t know where you were in the market cycle — or what the market was about to do next.
Here’s the truth no one tells you:
Every chart, every instrument, every timeframe — no matter what you trade — can only move in 6 distinct ways.
That’s it.
Six. Not sixty. Not six hundred.
And once you recognize which of those six you’re in… you’ll know exactly what to do, when to enter, when to hold, and when to get the hell out.
The 6 Ways the Market Moves
No matter what you trade — stocks, futures, crypto, forex — the market can only do one of six things.
These six behaviors are the entire language of price action and they are...
Trend
Trend Pause
Congestion Entrance
Congestion
Congestion Exit
Trend Reversal
In this dossier I am going to break them down for you so that you will always know exactly what market cycle you are in. There may be other ways of identifying them but I use something called the trend dot From Hawkeye. It works for me and makes it very easy.
I am going to start with everyone’s favorite…
Trend Run – The Move Everyone Wants
This is when price takes off with purpose. The close is strong — above the open and near the top of the range. Momentum is rising. You’re in alignment with the market’s heartbeat. This is what you want and it can be identified very when you are using the trend dot.
On your chart, you’ll see this when:
The close of bar A is above the dot.
The dot is rising, showing acceleration.
The close is greater than the open, and in the top 40% of the bar’s range.
NOTE: At Point B the dot is equidistant from the previous point and continues to be equidistant.
At this stage, the market is in full motion. Momentum and direction are aligned.
This is where the cleanest, most decisive trades happen.
Having the trend dot lets you know that the move is not over — this keeps you from chasing moves that are in fact over and keeps you from missing out on trades that still have plenty of gas left in the tank.
Next I’ll show you Trend Pause.
Trend Pause – When the Market Takes a Breath
A Trend Pause looks almost identical to a Trend Run — except for one crucial difference:
The close falls under the dot, point A.
But the dot is still rising.
That’s your signal the market is resting, not reversing. Strong trends always take pauses. Knowing this helps you stay calm and stay in profitable trades. Most traders panic here — mistaking a pause for weakness — and exit too soon.
Recognizing this subtle difference stops you from cutting winners short and lets you add on strength.
Now we will look at potential entry setups from areas of congestion.
Congestion Entrance – The First Sign of Trouble
Here’s where the market begins to lose direction.You’ll see:
The close move under the dot (point B).
And the dot flatten compared to the previous bar.
That’s your Congestion Entrance at point B.
At this point, look back to locate the last isolated or phantom high (Point A) — it often marks the upper boundary of what’s about to become a sideways range.
It’s the market’s quiet warning: “The trend is dying. Prepare for chop.”
Spot this shift early, and you’ll protect your profits while others bleed them away in low-volatility grind.
Now we are looking for either a fast trend reversal or congestion.
Congestion – The Trap Zone
Once you have your entrance, you’re watching for the first isolated or phantom low to form within the next 5 bars.
That becomes your lower boundary (Point B).
Draw a dotted line at Point A (the previous isolated high) and Point B (the new isolated low), and you’ve now defined your congestion range.
As price continues, new lower isolated highs and higher isolated lows may form — shifting your congestion lines tighter (Points C and D).
Rules to remember:
You can only contract congestion, never expand it.
If no isolated low forms within 5 bars after congestion entrance, it means you’re in a Trend Run Down instead.
Congestion is where most traders lose. It looks tradeable — but it’s just noise.
When you can visualize those dotted range boundaries, you’ll stop fighting chop and wait patiently for the real move which is congestion exit.
Congestion Exit – Now its Safe To Enter
Once your range is defined, you’re waiting for the break.A Congestion Exit occurs when:
The close is greater than the previous isolated high (Point C), or
The close is less than the previous isolated low (Point D).
At the breakout point (Point E), confirm that:
The bar closes above its open,
The close is in the top 40% of its range,
And ideally, the dot closes above the dotted line from Point C.
When those conditions align, a new directional move has begun.
This is the transition from indecision to opportunity. You’ll catch breakouts as they start — before most traders even realize the market’s waking up.
The last market type is a trend reversal. This is the market reaches a point and violently shifts directions without any congestion or sideways movement first.
Trend Reversal – When Everything Flips
A Trend Reversal is defined when:
You see a wide bar (Point A)
The dot is now lower than the dot 3 bars earlier,
And the close is below the dot.
This marks the end of one phase — and the beginning of another. It’s where institutional money quietly shifts direction.
When you can see this confirmation, you’ll protect profits and reposition before the crowd catches on.
This Knowledge Sets You Free
Once you understand these six moves, you stop guessing. You stop asking, “What’s the market going to do?” Instead, you see what it’s doing right now — clearly and objectively.
And that’s what kills fear. That’s what stops hesitation. That’s what turns reactive traders into confident decision-makers. All of which positions you much better to profit from the markets you are trading.
Now It’s Your Turn to Read the Market
In the screenshots below, you’ll see each of these six phases illustrated —the dots rising and falling, the isolated highs and lows forming,and the bars confirming each transition.
As you study the charts, take a moment to look closely…Can you spot where the market shifts from Trend Run to Trend Pause?Where a Congestion Entrance begins to flatten?Where the Congestion Exit explodes into a new Trend Run?
See if you can identify those turning points for yourself.Once you recognize the rhythm — the way the market expands, pauses, contracts, and releases —you’ll start to realize something powerful:
The market isn’t random. It’s structured. Predictable. Decodable.
And once you can read it this way, you’ll never trade blind again.
Join the Conversation
What did you notice as you went through the screenshots?Where did you see the transitions most clearly?Do you use the Hawkeye Indicators already — and if so, what tricks or settings have helped you most?
Drop your thoughts and questions in the comments below.Let’s compare notes, share insights, and help each other get sharper at reading the six phases in real time.
Because once you can see these shifts with confidence —everything about the way you trade changes.