Price Action Anatomy

Foundation of price action you need to know:


I. Market discounts everything: S&D cycle

3 phases of Supply (S) and Demand (D) in any market (mkt):
D exceed S => BULL MKT
S exceed D => BEAR MKT
D equal S => SIDEWAYS MKT

II. Prices move in trends

3 Phases of major trends:
1) Accumulation : steady markets- smart money buying
2) Public Participation (Continuation patterns) : essential for trends to be sustained
3) Distribution : smart money sell off- reversal of trend



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