- PS - Preliminary Support: following a prolonged downturn buyers step in, indicating that the downward trend may be nearing its end. Further confirmation seen with a spike.
- SC - Selling Climax: selling pressure climaxes with panicked retail investors absorbed by large scale investors.
- AR - Automatic Rally: the initial wave of buying defines the accumulation trading range.
- ST - Secondary Test: a bottom is confirmed with a revisit to the SC (with low )
Phase B - multiple visits to the ST and AR are seen during this phase as we move within the trading range. Occasionally these may wick outside the trading range to close shorts and longs entered on tight stops.
- Spring - price moves below the ST (the low of the trading range) for a final shakeout as large investors mislead the public about the future trend of the market, giving them an opportunity to accumulate more at a bargain price.
- Test - Large investors test market support at key levels - if a large supply is found the market is likely not ready for a move up. However once good support is found, higher lows will be seen.
- SOS - Sign of Strength: a strong price increase on high .
- LPS - Last Point of Support: the low of a pullback after each SOS, as previous resistance becomes support. Despite the name, there can be multiple LPS .
- BU/ LPS - Back-up: when a new trading range is introduced prior to another substantial move up.
Phase E - price rises up beyond the PS (preliminary support) marking the end of the accumulation phase.
With IOTA currently entering phase C, potentially forming a spring (and with Bitcoin approaching strong resistance on market dominance), this may well represent the point of maximum opportunity - though as ever, ensure to set a stop loss in case the spring has not yet reached its own bottom. Alternatively, keep an eye on IOTABTC and look out for a post-spring test or SOS as further potential entry points. This a long term trade, with the full 450% move to take until early-2022.
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"BU/ LPS - Back-up: when a new trading range is introduced prior to another substantial move up."