Learning of accumulation cycle and 5 phases of accumulation.
we take a look at accumulation, how this is disguised by the professionals or "smart money". The 5 phases of each are explained and show why it is so important to understand and be able to read the market structure, Next one how distribution occurs.
Simple terms:
Accumulation:
Buying of items by institute and they don't want the price to move up
Phase A:
Shake out of selling from retailers to professional.
Phase B:
Trading range as price bounce, Upthrust, professional or institute buying (The area where we should be buying)
Phase C:
Testing of no more supply left (we might see a pop out of range). HH and HL
Phase D:
Move up through resistance, higher spreads and volume, dominance of demand over supply (signs of strength)
Sometimes we see last point of supply left i can say people who missed out or booked profits can buy here as well volume can indicate the buying area.
Phase E:
Demands in control, sell offs will be weak.
Simple terms:
Accumulation:
Buying of items by institute and they don't want the price to move up
Phase A:
Shake out of selling from retailers to professional.
Phase B:
Trading range as price bounce, Upthrust, professional or institute buying (The area where we should be buying)
Phase C:
Testing of no more supply left (we might see a pop out of range). HH and HL
Phase D:
Move up through resistance, higher spreads and volume, dominance of demand over supply (signs of strength)
Sometimes we see last point of supply left i can say people who missed out or booked profits can buy here as well volume can indicate the buying area.
Phase E:
Demands in control, sell offs will be weak.