WY-05-23 / 03
Two Interpretations of a Range After an Advance
Continuation and Complex Structures
Lesson / WY-05-23
After an advance, a range forms. Price first crosses the upper boundary and returns, then falls to the middle, and later makes a low-volume recovery near the lower boundary. Distribution reads the upper action as candidate UT or UTAD and the decline after reentry as potential weakness. But a lower-boundary break returning inside contradicts distribution. Before effective SOW appears, if the predefined window or one complete downward opportunity is unfinished, this remains missing information. Only after the deadline can expected weakness be called absent. Reaccumulation can view the upper breach as an unfinished breakout attempt and the lower recovery as a supply test. Failure to hold the upper breakout and the subsequent middle-reaching decline still weigh against reaccumulation.
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
