The market isn’t bull or bear—it’s alive.
Most traders operate inside a dyad: price is either going up or down, people are either buying or selling, and the goal is to pick a side. That logic is shallow, reactionary, and incomplete. It leads to tunnel vision and poor timing.
At Profit Smasher, we trade using a higher-order framework: the Triadic Flow Model. This model reveals how energy, structure, and psychology interact in live time to shape every move in the market.
This isn't about trend or reversal. It's about recognizing phases—not based on bias, but flow.
The Failure of the Bull/Bear Narrative
The bull/bear dyad forces traders to oversimplify. A breakout is labeled bullish. A drop is labeled bearish. Everyone rushes to join a side, ignoring who’s actually in control.
But the market doesn't choose sides. It flows through states of pressure, imbalance, and alignment. If you follow direction alone, you're chasing the symptom—not the cause.
Direction is an output. Flow is the source.
The Triadic Flow Model
The market breathes in three phases, not two. These phases align with:
1. Energy – The emotional intensity behind the move
2. Structure – The moving average framework price is interacting with
3. Psychology – The mindset of participants (fear, greed, or discipline)
These three forces cycle constantly. The trader's job is to observe the flow, not predict direction. Each flow phase offers a different opportunity.
Phase 1: Expansion (Hot Flow)
Energy is high. Volume spikes. RSI pushes above 70 or under 30. Traders are acting emotionally, chasing candles, and stepping out of structure.
This is where gamblers enter. It looks like strength. It’s usually exhaustion.
Price detaches from the 20 MA, runs away from the 50 MA, and sometimes rips beyond the Bollinger Band. It's loud. It’s irrational. And it sets the trap.
What to do:
Don’t chase it. Watch it. Let the hot energy burn itself out.
Phase 2: Reversion (Cooling Flow)
Energy cools. RSI returns toward 50. Price pulls back or fades back to the 20 or 50 MA. Volume begins to contract. Structure starts to matter again.
This is where algorithms step back in. They don’t care about emotion. They care about efficiency.
Price pulls toward order. Chaos fades. The trap is sprung on the latecomers.
What to do:
Begin preparing. If price respects structure and RSI cools with volume contraction, alignment is forming.
Phase 3: Alignment (Stable Flow)
Price stabilizes near structure—usually the 50 MA or between the Bollinger Bands. RSI hovers near 50. Volume flattens.
This is where strategy traders strike. It’s quiet, controlled, and structured. The crowd is no longer involved. This is where the edge lives.
What to do:
Enter. Your system is designed for alignment, not for chaos. Let the emotional traders pay for the move. You ride the rebalanced wave.
Using the Triadic Flow Model in Nasdaq
Example: during the New York session, NQ surges 100+ points. RSI spikes. Price is well beyond the Bollinger Band. Hot Flow is in play. Gamblers are clicking buy. That’s not your trade.
Minutes later, price pulls back. RSI returns to 58. Volume contracts. Price retests the 20 MA. Cooling Flow is forming. Still not time.
Price then consolidates just above the 50 MA. Volume evens out. RSI moves sideways between 48–52. Stable Flow is here. That’s the trade.
Indicators for Triadic Flow
RSI = energy thermometer
Volume = crowd noise
20/50/200 MA = structure anchors
Bollinger Bands (2 deviation) = expansion boundaries
Why This Model Works
It doesn’t rely on direction. It reads the market as a living system—constantly heating, cooling, and stabilizing. Every move is a phase. Every phase has a role.
Hot Flow isn't bullish. It's overheated.
Cooling Flow isn’t bearish. It's correcting.
Stable Flow isn't neutral. It's precise.
Conclusion
If you're still asking "Is this bullish or bearish?" you're not ready.
The market isn't either. It's both—and neither. It's a system in motion, flowing through triadic phases of energy, structure, and psychology.
The Triadic Flow Model lets you read what most traders can't: the hidden alignment beneath the price. Once you master it, you stop reacting and start syncing.
Don't trade sides.
Trade states.
Trade flow.