Everyone’s always saying, “Look for a market that’s trending.” One good way to learn what’s trending is to get better at identifying what is not trending.
Sometimes a chart has plenty of movement but very little direction. Other times, they may do something unique that can create an even more volatile trading environment.
Watch What the Highs and Lows Are Doing
During a recent Ticker Request Live, we looked at IREN (May 19, 2026). I had brought the chart back in time a bit. It had pushed up, had a disconnect between price and momentum, and then started pulling back. Price made a low and started recovering, so the bulls had some reason to get hopeful again.
Then it formed a high and had a sharp reversal. The bears pushed below that first low, but quickly regrouped and came back above the previous high. So now we had low, high, lower low, higher high.
That sequence is what got my attention. Instead of the boundaries converging toward each other, they were expanding outward.
Expanding Boundaries Can Get Volatile
When I see a chart behaving that way, it’s generally not a candidate for me to put on a new position. I described IREN during the session as a trendless environment that was diverging and expanding.
That can be even more volatile than a smaller consolidation pattern because you can’t trust the boundaries the same way. On IREN, the bears had already pushed below the first low, only for price to turn around and come back above the prior high.
That lower low didn’t lead to a sustained move down. Then the move back up extended beyond the previous high. Both sides were stretching the recent trading range, which made the chart harder to rely on directionally.
That’s the part I want traders to notice. A market can have plenty of movement and still give you very little in the way of a dependable trend.
My Dad Called It “Dangerous Business”
This type of price action always reminds me of something my dad taught me early on.
He used to tell me that when I saw a megaphone, with expanding higher highs and lower lows, I should “stay out of the way. It’s dangerous business.”
And honestly, I didn’t always believe him.
I wish I knew then what I know now, because those expanding environments can get messy quickly. The boundaries that looked useful a moment ago can get broken, price can reverse again, and suddenly the chart is stretching even farther in the other direction.
IREN gave us a good real-time example of exactly what he meant.
Let the Market Resolve
When I see this kind of trendless environment, I’d rather monitor the shorter-term levels and see which way things resolve. I don’t need to decide ahead of time which side is eventually going to win.
That’s also why learning to recognize what isn’t trending can be just as useful as learning to spot a trend. If you can identify expanding highs and lows early, you know you’re dealing with a different kind of market environment and can adjust how willing you are to put on a new position.
So the next time a chart feels especially choppy or difficult to read, take a closer look at the sequence of highs and lows. If you’re seeing a low, high, lower low and then higher high, those expanding boundaries are giving you useful information.
Be careful, monitor the shorter-term levels, and let the market show you how it resolves.
Or, as my dad would say, stay out of the way. It’s dangerous business.
👉 PS — Trader Trainings Coming Up!
The Trader Training calendar has been updated! Here’s what’s on deck:
- Bonus Advanced Momentum Tuneup → for Advanced RSI Power Zones members
📅 TODAY Thursday August 13th at 4:30 PM ET - Ticker Request Live — free weekly trading show
📅 Tuesday, August 25th at 4:30 PM ET
Visit himareddy.com/events for full details and registration.
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