Phase A. stopping the previous bearish trend. PS- its the fist attempt to stop the downward movement that always fail. SC- climax action that stops the downward movement. AR- bullish reaction. an up-ward movement that sets the trading range high. ST- test of the level of supply in relation to climax action. establishes the end of phase A and beginning of phase B.
this produces the chage in character with which it makes the price evolve from a downward trend environment ta a lateralisation environment. also we saw the sign of strength and
Phase B construction of the cause.(TEST) UA- temporary breakout of the resistance and re-entry into the range. this is a test at the high generated by the AR. ST as SOW- secondary test as sign of weakness in test function. temporary break of the support and re-entry to the range. CHoCH- change of character. it indicate the inverinment in which the price will move soon, commonly happen in phase a and c but this happen in phase B, it wold be a kind of test that denotes greater strength.
This type of test allows us to evaluate the strength and weakness of buyers and sellers . occasionally , test will be performed at both the top and bottom ends of the structure.
Phase C (possible) TEST. at this current level, potential shakeout. i call it. SECONDARY TEST ON THE UPPER END. the price passes through the previous high created in the stop action but does not move too far away before re-entering the range leaving a slight shake. is it a movement that denotes background strength as the price has been able to penetrate the resistance zone of the range ; and this could not happen if there were no aggressive buyers present.
**** currently price is able to closed above VWAP 0.417 with volume breakout, that indicate a stopping move. real strength only if price able to be above 0.435-0.4 retest a stay above it.
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As informações e publicações não devem ser e não constituem conselhos ou recomendações financeiras, de investimento, de negociação ou de qualquer outro tipo, fornecidas ou endossadas pela TradingView. Leia mais em Termos de uso.