A bullish price range is a portion of price action that shows an upward movement, followed by a downward movement, and then another upward movement. This creates a balanced price range where the price action has delivered buy side, sell side, and then buy side again.
On the other hand, a bearish price range is a portion of price action that exhibits a downward movement, followed by an upward movement, and then another downward movement. This creates a balanced price range where the price action has delivered sell side, buy side, and then sell side again.
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The redelivered rebalanced PD array is depicted with candlesticks, showing the sequence of price moves: up, down, and then up again for a bullish array, and down, up, and then down again for a bearish array. This portion of price action represents a balanced price range.
Imagine the candlestick chart showing this sequence. The first candle goes up, offering buy-side, then goes all the way down to provide sell-side, closing at the bottom. Inside this candle’s wick, we see both buy-side and sell-side. The next candle opens, offering buy-side again, completing the balanced price range. This area of price action is fully balanced.
Now, here comes the interesting part. When there's a balanced price range below a fair value gap, the gap can stay open. This is what we call a breakaway gap. On the other hand, if there's a balanced price range above a gap, it becomes a bearish rebalance redelivered price area, and the gap may not need to be retested.
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