Newton’s 3rd Law of Motion states that,

“In every action, there is always an equal and opposite reaction”

You might wonder what is the relation of this physics principle in market trading. Like, “What is this physics thing doing in trading?! I thought I’m past this already”. Surprisingly, this physics concept is also applicable in the market. It has the ability to pinpoint possible direction of a breakout! It is very precise if market makers wont interfere in the process. Do remember that it is a law so we don’t know why it happens but it is a recurring pattern observed in the market as well.

Shown in this chart is the break out of ETH in the identified sloped resistance and a reaction space was calculated to pinpoint possible trajectory of ETH’s price. So far, ETH is still showing no signs of stopping heading towards the projected resistance in the reaction zone.

Will it reach the top or will there be a key signal that will invalidate the rise of ETH?

If you want to learn more, visit me on my Twitter

@flerovium_
Louis | SPRTN