Lesson / WY-04-18
Distribution is a candidate process: the preceding advance stops and a trading range forms; after repeated upward probes and declines, rallies shorten and buyers increasingly struggle to hold price high; sellers ultimately push price out of the range and continue lowering it. Both distribution and accumulation can be analyzed through Phases A–E, but their price behavior need not be vertical mirror images. Upward inertia, buying at high prices, and long liquidation after decline begins give tops their own rhythm.
Course content is for learning and research only. It is not investment advice.
Read the Chapter ↗Timestamps
8 lessons · Chapter contents
01The Relationship Between Distribution Phases and Events↗02Phase A: Has the Advance Stopped?↗03Preliminary Supply: PSY↗04Buying Climax: BC↗05Automatic Reaction: AR↗06Secondary Test: ST↗07Establishing and Revising Preliminary Boundaries↗08Climactic Stopping and Gradual Loss of Upward Effectiveness↗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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Phases B and C: Upthrusts, UTAD, and Demand Tests
Phases D and E: SOW, LPSY, and the Developing Decline
