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Definition

Directional State

The market state in which expansion behavior has persisted — one side consistently overrunning the other's liquidity.

Full Explanation
A directional state is the only state that supports a directional thesis. It requires more than a few candles moving in one direction — the expansion must have persisted long enough and been consistent enough that the behavior is describable without hedging. A directional state can contain candle-level acceptance, pullbacks, and brief transitions within it — those smaller-scale behaviors are what a directional state looks like up close. The key is that at the scale you are reading, one side has been demonstrably dominant across a meaningful stretch of chart.
In the Book 1 chapter
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Chapter 13 · Reading the Current Market
The Three States
This chapter is part of the full book. Get access to read the complete explanation in context.