Part 1

18 мар. 2022 г.

Wanted to go through some movements explaining more the way I trade, how I did catch these moves. Thought that I could go through them all in one video, but could only could talk about one movements & did cut some off what I wanted to say and still did almost eat the whole 20 minutes

Yes I have trouble pronouncing demand & it was my first idea video ever and I should get better at it (:


Heres what I talked about, which is a distribution cycle.


PSY—preliminary supply, where large interests begin to unload
shares in quantity after a pronounced up-move. Volume expands
and price spread widens, signaling that a change in trend may be
approaching.

BC—buying climax, during which there are often marked
increases in volume and price spread. The force of buying
reaches a climax, and heavy or urgent buying by the public is
being filled by professional interests at prices near a top.

AR—automatic reaction. With intense buying substantially
diminished after the BC and heavy supply continuing, an AR takes
place. The low of this selloff helps define the lower boundary of
the distribution TR.
ST—secondary test, in which price revisits the area of the BC to
test the demand/supply balance at these price levels. If a top is to
be confirmed, supply will outweigh demand, and volume and
spread should decrease as price approaches the resistance area
of the BC. A ST may take the form of an upthrust (UT), in which
price moves above the resistance represented by the BC and
possibly other STs, then quickly reverses to close below
resistance. After a UT, price often tests the lower boundary of the
TR.

SOW—sign of weakness, observable as a down-move to (or
slightly past) the lower boundary of the TR, usually occurring on
increased spread and volume. The AR and the initial SOW(s)
indicate a change of character in the price action of the stock:
supply is now dominant. ---> ONE HAPPENED AT THE AR.

LPSY—last point of supply. After testing support on a SOW, a
feeble rally on narrow spread shows that the market is having
considerable difficulty advancing. This inability to rally may be
due to weak demand, substantial supply or both. LPSYs represent
exhaustion of demand and the last waves of large operators’
distribution before markdown begins in earnest.

UT —upthrust after distribution. A UTAD is the distributional
counterpart to the spring and terminal shakeout in the
accumulation TR. It occurs in the latter stages of the TR and
provides a definitive test of new demand after a breakout above
TR resistance. Analogous to springs and shakeouts, a UTAD is not
a required structural element.