PSY—preliminary supply
BC—buying climax
AR—automatic reaction
ST—secondary test
SOW—sign of weaknessw
UTAD—upthrust after distribution.
Phase A: Phase A in a distribution TR marks the stopping of the prior uptrend.
In a redistribution TR within a larger downtrend, phase A may look more like the start of an accumulation
Phase B: The function of phase B is to build a cause in preparation for a new downtrend.
Phase C: In distribution, phase C may reveal itself via an upthrust (UT) or UTAD.
Aggressive traders may wish to initiate short positions after a UT or UTAD.
Phase D: Phase D arrives after the tests in phase C show us the last gasps of demand.
Phase E: Phase E depicts the unfolding of the downtrend
BC—buying climax
AR—automatic reaction
ST—secondary test
SOW—sign of weaknessw
UTAD—upthrust after distribution.
Phase A: Phase A in a distribution TR marks the stopping of the prior uptrend.
In a redistribution TR within a larger downtrend, phase A may look more like the start of an accumulation
Phase B: The function of phase B is to build a cause in preparation for a new downtrend.
Phase C: In distribution, phase C may reveal itself via an upthrust (UT) or UTAD.
Aggressive traders may wish to initiate short positions after a UT or UTAD.
Phase D: Phase D arrives after the tests in phase C show us the last gasps of demand.
Phase E: Phase E depicts the unfolding of the downtrend
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.