Accumulation
Market Up
1. Phase A CHoCH 1 Stopping the previous trend
2. Phase B Construction of the cause
3. Phase C Evaluation of competition
4. Phase D CHoCH 2 Starting the trend move
5. Phase E Confirmation of direction "Market up"
CHoCH. Change of Character (change of character). Character change. This
indicates environment in which the price will move soon.
The first CHoCH Change of Character is established in Phase A where the price moves from a trend
descent in a consolidation environment. The second CHoCH Change of Character is set
from the low of Phase C to the high of the SOS where the price goes from a consolidation into a
upward trending environment.
Distribution
Market down
1. Phase A CHoCH 1 Stopping the previous trend
2. Phase B Construction of the cause
3. Phase C Evaluation of competition
4. Phase D CHoCH 2 Starting the trend move
5. Phase E Confirmation of direction "Market down"
CHoCH. Change of Character (change of character). It indicates the environment in which the price will
move soon
The first CHoCH Change of Character is set in Phase A where price moves from an average
from an upward trend to one of consolidation or balance between supply and demand. Second
CHoCH Change of Character is set from the high of the C phase to the low, at the SOW sign of
weakness where the price moves from a consolidating environment to a trending environment
descendent.