Expansion; This, in simple terms implies a fast, momentum-drive move from one point of interest, POI.

With aggressive moves, it gives us more of a clear direction of where the market wants to go. Instead of trying to guess where price is going to and wanting to see that expansion, we want to wait for an expansion. After that it will either give us a retracement, consolidation, or reversal. But we always wait for that expansion first.

Retracement; This is where price moves back inside of a created range, after having created a high/low.

Usually, after a strong price run in either direction (expansion), price will leave behind displacements, liquidity voids. With a retracement, it entails that price will move back to one of these in a recently created price range. Our goal is to be able to identify where price could retrace to, in order to build that narrative.

Reversal; This is where price reaches a certain level/area and then moves in the opposite direction.

For price to reverse it has to run... read that one again. It's the simplest way of putting it, and it will hit a lot harder after time goes by. So, this entails that when we see a strong move there must have been a liquidity pool that has been taken out prior to that (old highs/lows). And we can then expect price to move in a new direction.

So, these three are like a vicious spiral.

Expansion -> Retracement -> Reversal (E.R.R)