All downtrend styles that might occur, are covered by this formula. And it would be interested to know, which ones already happened. Plus, how many times. (Which are more likely to end up in big bear downtrend, or just in pullbacks). Edit: in 1 / 5 min. candles data.
I think It's only random up to the point where they trap buyers or sellers, once that is accomplished there's not much random left, way more often than not they are going to squeeze them out, at minimal to the next closest relative low or relative high. If want to debate that it's still moving up and down in random waves, prior to taking out the relative low or high, then that's fine... and makes sense, but it's not like it takes some huge crazy path(generally speaking) once the trap is set in motion, it's normally pretty fast and straightforward(from a view of getting to the relative low or high without too much hassle).
Not true. If a downtrend has daily closes of $100, 99, 98, 97, 96, 95, 94, 93, 92, 91, 90 ; Does it follow the 3x+1 pattern?