Lesson / WY-04-18
The area around BC or the principal stopping high forms a candidate upper boundary; the AR low area forms a candidate lower boundary. Use the upper boundary to observe demand tests and failed breakouts, and the lower one to assess whether supply can produce SOW. Midrange events usually update only local supply-demand assessment and have less location value.
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
