Lesson / WY-03-14
At the start of Phase B, the preceding one-way advance or decline has stopped, and price begins moving between preliminary upper and lower boundaries. Trading becomes two-way because neither side can yet maintain an advantage across successive price levels. Near the lower boundary, fewer participants are willing to sell at lower prices, and buying support initially obstructs the decline. An actual rally also requires aggressive buy orders accepting higher offers, sellers raising their quotes, or buy orders from short covering. Near the upper boundary, profit-taking, reductions in existing holdings, or fresh selling may halt the advance. Orders with different horizons, valuations, and position objectives continually enter the range. The back-and-forth movement itself shows only that both sides change their willingness to trade at different prices. Repeated trading gradually reveals where selling pressure remains, where buying support appears, and whether rising or falling is becoming easier.
Course content is for learning and research only. It is not investment advice.
Read the Chapter ↗Timestamps
7 lessons · Chapter contents
01How Phase B Prepares for Subsequent Action↗02Continuing Comparisons of Swings in the Same Direction↗03Advances and Opposing Swings↗04The Upper Boundary, Lower Boundary, and Middle↗05Testing Across Different Phases↗06How Accumulation Evidence Strengthens or Weakens↗07Retaining Redistribution or Continued Decline as Alternatives↗Observe the market: start with context and place price within its structure.
Understand structure: compare supply and demand, and let evidence support or revise your hypothesis.
Form a view: define risk limits and know when to reassess.
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The Accumulation Structure and Phase A
Phase C: Springs and Supply Tests
