WYCKOFF phase C
Price a currently been trading in upward slope accumulation .
Price currently in potential phase C making a shakeout.
This shakeout behavior is simple;
is it a movement of rupture of a previous liquidity area (areas where there will be located a large number of pending orders of execution) in this case shakeout happened after SOS towards resistance in up-slope accumulation phase.
This is the way financial markets move; by the search for liquidity.
INDICATIONS TO KNOW IF WE ARE FACING A POTENTIAL SHAKEOUT.
The two elements to observe in order to try to determine a greater probability that we are facing a shock instead of an effective break.
Look what type of ST that happens in phase B
If we have previously identified a secondary test in form of uptrust action (UA), this denotes greater strength to the buyer and therefore in zone of minimum breakout of structure we favor the spring/shaekout instead of the bass breakout.
If what has left the price is a secondary tets in the form of sign of weakness(sow), denotes strength of the sellers and in zone of maximum rupture of the structure we favor that happens the upthrust instead of the effective bullish rupture.
And also, look at price behaviour after breakout
If after the breakout of the lower part of the structure the price fails to stay below and re-enters the range again, its denotes strong purchase entry and adds greater probability that the breakout is false and that shakeout or spring is therefore developing .
Price currently in potential phase C making a shakeout.
This shakeout behavior is simple;
is it a movement of rupture of a previous liquidity area (areas where there will be located a large number of pending orders of execution) in this case shakeout happened after SOS towards resistance in up-slope accumulation phase.
This is the way financial markets move; by the search for liquidity.
INDICATIONS TO KNOW IF WE ARE FACING A POTENTIAL SHAKEOUT.
The two elements to observe in order to try to determine a greater probability that we are facing a shock instead of an effective break.
Look what type of ST that happens in phase B
If we have previously identified a secondary test in form of uptrust action (UA), this denotes greater strength to the buyer and therefore in zone of minimum breakout of structure we favor the spring/shaekout instead of the bass breakout.
If what has left the price is a secondary tets in the form of sign of weakness(sow), denotes strength of the sellers and in zone of maximum rupture of the structure we favor that happens the upthrust instead of the effective bullish rupture.
And also, look at price behaviour after breakout
If after the breakout of the lower part of the structure the price fails to stay below and re-enters the range again, its denotes strong purchase entry and adds greater probability that the breakout is false and that shakeout or spring is therefore developing .
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