Testing Supply Before Markdown - Another Distribution Cycle
The matroyshka doll cycle
Accumulation and distribution unfold and confirm one another on all timeframes.
"The specialist resolves his day-to-day inventory problems with his intermediate and long-term objectives always in view."
Insiders. Specialists. Market makers. Big operators. Exchanges. Professional money.
Wolves.
Investor. Speculator. Retail.
Sheep.
Where in trend are we?
We are currently in a downtrend.
Is there volatility, or is price consolidating?
We are consolidating.
The longer the period of consolidation, the more extended the reversal will be.
[But, are we in accumulation, or are we testing supply before the next markdown phase?
Testing supply. The next markdown phase will begin soon.
Question: If the selling climax happens at the top and represents the specialists clearing out the remaining shares from their warehouses, how do they subsequently drive the price back down? Is testing supply them rebuying and then selling at every level, and do they lose money at this stage?
It seems like they are doing an awful lot of work and are taking on risk continuously in their campaign to drive prices back down to an accumulation stage.
Alternatively: What do you make of the volume? It seems hopelessly erratic, and has reduced trading confirmation to a point where it is basically guesswork.
Accumulation and distribution unfold and confirm one another on all timeframes.
"The specialist resolves his day-to-day inventory problems with his intermediate and long-term objectives always in view."
Insiders. Specialists. Market makers. Big operators. Exchanges. Professional money.
Wolves.
Investor. Speculator. Retail.
Sheep.
Where in trend are we?
We are currently in a downtrend.
Is there volatility, or is price consolidating?
We are consolidating.
The longer the period of consolidation, the more extended the reversal will be.
[But, are we in accumulation, or are we testing supply before the next markdown phase?
Testing supply. The next markdown phase will begin soon.
Question: If the selling climax happens at the top and represents the specialists clearing out the remaining shares from their warehouses, how do they subsequently drive the price back down? Is testing supply them rebuying and then selling at every level, and do they lose money at this stage?
It seems like they are doing an awful lot of work and are taking on risk continuously in their campaign to drive prices back down to an accumulation stage.
Alternatively: What do you make of the volume? It seems hopelessly erratic, and has reduced trading confirmation to a point where it is basically guesswork.