This is a follow up from my last chart this includes the involvement of a LPSY
LPSY — last point of supply. After testing support on a SOW, a feeble rally on narrow spread shows that the market is having considerable difficulty advancing. This inability to rally may be due to weak demand, substantial supply or both. LPSYs represent exhaustion of demand and the last waves of large operators’ distribution before markdown begins in earnest.
Bitcoin has been ranging for a year now. this is typical of wyckoff distribution. Regardless of schematics working perfectly to a diagram. These are the signs of distribution I look for. The key areas to be aware of are:
Volume , does it rise on supply, is there a response to attempts to push the price back up?
Is there a clear buying climax to begin your trading range. Look for candles with long wick (to indicate counter-pressure) or blow off top candles that create an obvious difference from the previous uptrend.
Is there an automatic reaction to that? Does price return back down on high supply?
Have their been any springs (movements below the BC or TRADING RANGE) — how were these responded to?
This should be conducted on a minimum of a 12h chart.
UTAD — upthrust after distribution. A UTAD is the distributional counterpart to the spring and terminal shakeout in the accumulation TR . It occurs in the latter stages of the TR and provides a definitive test of new demand after a breakout above TR resistance. Analogous to springs and shakeouts, a UTAD is not a required structural element
ICE — This is another concept that isn’t covered in all distribution schematics but I feel it’s worth covering. Accumulation has a Creek and when price crosses this creek it’s considering to be Jumping Across the Creek (JAC). The creek is a rough line drawn across the highs of the range that we expect to see broken on high volume to add credibility. Within distribution we have a similar concept called ICE. Imagine this as a frozen lake, each footstep you take on the ice it becomes a little weaker. A rough line is drawn across the lows of the range instead for distribution, each time the price has touched it, it weakens and sooner or later the ICE will break and price (and you on the lake) will fall through.
Disclaimer
LPSY — last point of supply. After testing support on a SOW, a feeble rally on narrow spread shows that the market is having considerable difficulty advancing. This inability to rally may be due to weak demand, substantial supply or both. LPSYs represent exhaustion of demand and the last waves of large operators’ distribution before markdown begins in earnest.
Bitcoin has been ranging for a year now. this is typical of wyckoff distribution. Regardless of schematics working perfectly to a diagram. These are the signs of distribution I look for. The key areas to be aware of are:
Volume , does it rise on supply, is there a response to attempts to push the price back up?
Is there a clear buying climax to begin your trading range. Look for candles with long wick (to indicate counter-pressure) or blow off top candles that create an obvious difference from the previous uptrend.
Is there an automatic reaction to that? Does price return back down on high supply?
Have their been any springs (movements below the BC or TRADING RANGE) — how were these responded to?
This should be conducted on a minimum of a 12h chart.
UTAD — upthrust after distribution. A UTAD is the distributional counterpart to the spring and terminal shakeout in the accumulation TR . It occurs in the latter stages of the TR and provides a definitive test of new demand after a breakout above TR resistance. Analogous to springs and shakeouts, a UTAD is not a required structural element
ICE — This is another concept that isn’t covered in all distribution schematics but I feel it’s worth covering. Accumulation has a Creek and when price crosses this creek it’s considering to be Jumping Across the Creek (JAC). The creek is a rough line drawn across the highs of the range that we expect to see broken on high volume to add credibility. Within distribution we have a similar concept called ICE. Imagine this as a frozen lake, each footstep you take on the ice it becomes a little weaker. A rough line is drawn across the lows of the range instead for distribution, each time the price has touched it, it weakens and sooner or later the ICE will break and price (and you on the lake) will fall through.
Disclaimer