The observable shift between expansion and acceptance, in either direction. The defining feature is the change, not the current level of friction.
Full Explanation
A transitional state is not uncertainty — it is a specific mechanical observation that friction or directional balance is measurably changing. The market is moving from one named state to another. The correct response to a transitional state is to wait for resolution — to let the market show whether the transition produces a new directional state or settles into acceptance. Acting on a transitional state before it resolves is acting on an incomplete picture.
In the Book1 chapter
🔒
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.