WY-05-23 / 02
Two Interpretations of a Range After a Decline
Continuation and Complex Structures
Lesson / WY-05-23
Imagine a decline stopping and forming upper and lower boundaries. The first rally travels from the lower boundary to the middle; the second downward probe briefly crosses the old low and recovers; the following rally still misses the upper boundary. For accumulation, the stopped decline and lower-boundary recovery support supply encountering buying support, and the old-low breach may be a candidate Spring. The rally missing the upper boundary is contrary evidence because demand has not demonstrated a full strong result.
Course content is for learning and research only. It is not investment advice.
Read the Chapter ↗Timestamps
7 lessons · Chapter contents
01Primary Hypotheses, Alternatives, and Neutrality↗02Two Interpretations of a Range After a Decline↗03Two Interpretations of a Range After an Advance↗04Supporting Behavior and Contrary Evidence↗05Persuasive Evidence Versus Repeated Labels↗06What Observations Distinguish the Two Explanations?↗07Updating, Deferring, Switching, and Not Trading↗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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Reaccumulation, Redistribution, and Complex Schematics
