WY-04-19 / 01
The Task of Phase B: Comparing Rallies, Declines, and Internal Range Behavior
Distribution
Lesson / WY-04-19
In a typical distribution schematic, Phase B begins after Preliminary Supply, Buying Climax, and Automatic Reaction interrupt the previous advance. PSY is an early sign of substantial selling pressure confronting rising prices. BC occurs where chasing demand and trading activity expand sharply but further rising becomes increasingly difficult. AR follows the retreat of climax demand, allowing sellers to lower price materially. These events help define initial range boundaries but show only that the old trend is obstructed and two-way movement has begun, not that distribution is complete. If the advance stops gradually without clear PSY or BC, Phase B can also be defined from the main stopping high and the important decline that follows.
Course content is for learning and research only. It is not investment advice.
Read the Chapter ↗Timestamps
8 lessons · Chapter contents
01The Task of Phase B: Comparing Rallies, Declines, and Internal Range Behavior↗02Increasing Supply, Weakening Demand, and Their Combination↗03Upthrust: UT↗04Upthrust After Distribution: UTAD↗05UT, UTAD, Ordinary Breakouts, and Breakout Failure↗06Demand Testing in Phase C↗07No UTAD and Tests at Lower Levels↗08Repeated Upthrusts and Returns to the Range↗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 Distribution Structure and Phase A
Phases D and E: SOW, LPSY, and the Developing Decline
