After every sudden move that has closed at highs or at lows, the accumulation or distribution come afterwards. These periods in the market are used to remove resistance areas. In the bullish view, you will notice areas where the market will stumble then continues the rally. This is because there's supply in the market. The market makers have to take in this supply before removing it in their books of orders but only if they have the same view of the market as YOU .
Now after all that how would you identify these signs? Well firstly understand the laws of supply and demand, Yes! the markets are manipulated all the time!, you will have to understand that too. Secondly, be able to identify these ranging periods. Candlesticks are the best. Learn how to read them
Back to my analysis, I have total bullish 3 formed on my chart after two failed pattern which I posted last week. The reason of the failure was basically failing to associate patterns with the price action. I now understand it's importance. It is a learning progress indeed. At the moment the market is looking to try and test the supply. In the past 3 weeks we have had this substantial fall. Clearly, after a green day up (look at the daily timeframe) the market stumbled this is because supply still exists in the market. That was unexpected move to bear holders and they are now looking to accumulate or test the supply price.
I am going to post another post for possible entry points. Stay tuned :)
Links:
Example of a manipulation: CAD expected to be strong today.
Example of a market testing supply: "A complete pattern should be finished" and "Long term bulls"
Example of a accumulation: Long term holders
Example of distribution: CAD expected to be strong
Now after all that how would you identify these signs? Well firstly understand the laws of supply and demand, Yes! the markets are manipulated all the time!, you will have to understand that too. Secondly, be able to identify these ranging periods. Candlesticks are the best. Learn how to read them
Back to my analysis, I have total bullish 3 formed on my chart after two failed pattern which I posted last week. The reason of the failure was basically failing to associate patterns with the price action. I now understand it's importance. It is a learning progress indeed. At the moment the market is looking to try and test the supply. In the past 3 weeks we have had this substantial fall. Clearly, after a green day up (look at the daily timeframe) the market stumbled this is because supply still exists in the market. That was unexpected move to bear holders and they are now looking to accumulate or test the supply price.
I am going to post another post for possible entry points. Stay tuned :)
Links:
Example of a manipulation: CAD expected to be strong today.
Example of a market testing supply: "A complete pattern should be finished" and "Long term bulls"
Example of a accumulation: Long term holders
Example of distribution: CAD expected to be strong
