In following the idea of Action-Test, Action-Test, the Backup to the Edge of the Creek is the test for the action that proceeded it, the Jump Across the Creek.


As the price starts to back up, you should see the volume recede along with a narrowing of the price movement. Because you have drawn in your creek on your charts, you have an idea where this reaction is likely to find support. Provide the support holds above the creek, and is not within the trading range, you can buy on the backup. Backups that occur within a trading range are not favorable and should be avoided