All language subtitles for [English (auto-generated)] Session 03 WTC January 21, 2019 1 [DownSub.com] (1)

of the white of trading course

um thank you for all of your emails and

for all of the comments that i've

received about the first two classes you

could see some of the comments from

students

on the left

side of the slide

i'm really excited that i hear a lot of

excitement from you guys

and that

obviously always energizes me you know

to

go on and to think that this is going to

be a great cycle and i see how you guys

are communicating with me it took me

um a few hours to go through the

homeworks so i've actually

was able uh you know today and usually

monday is my preparation day for the

course um since the morning

you know to go through all of the emails

and there were quite a few so thank you

for sending those thank you for all of

the kind words by the way that you sent

me uh you know about the course and

you know the knowledge that we present

in this course so i really appreciate

that um

i am also was

uh somewhat impressed because the first

homework where people send me their

labeling

it kind of gives me an understanding of

what the cycle is going to be you know

and how people are going to be in this

course and so on and so forth so i was

really impressed with

the level of understanding of the

material that's number one secondly how

you guys are picking up the new

knowledge and applying this having said

this there are obviously tons of

adjustments that we will do that we will

need to do so

you know this is not a finished product

yet by any means so there is a lot of

work um in front of us but still such a

great start

and today specifically with the homework

i want you to point your attention to

the

identification of

phase boundaries um almost in each of

the homeworks we had something to adjust

around the boundaries of of the phases

and obviously you know

there's something that i need to give

you so we will

we will definitely go through some of

the theoretical material where i will

show you how to identify phase c

how to identify the boundaries you know

between different phases and so on so

forth and then you know we'll go through

all the stuff today as well next session

is january 28th we are uh gonna continue

uh with the price structure so uh these

homeworks are fundamental tools for us

to

start learning about

phase analysis so that's gonna be our

focus

and we will continue uh with that on

january 28th

all right as usual

all of our classes are for educational

purposes only stop your video read the

disclaimer

and then today i actually let me do one

thing guys before i'm realizing that

actually

slightly unprepared do you guys see my

screen right now

um

okay yeah you should not be seeing my

screen right now

i think okay

okay great

oh hold on a second

okay awesome

okay great

and now you sh we should be back

all right yes so we are on the question

from lee

okay awesome uh thank you guys it's just

like one

minor

technical detail that i had to take care

of so

this is a question from the student in

this class

why am i posting this

slide here and why are we discussing

this question i usually email to your

guy i email you guys the instructions

about the questions as such

if you sent me a question that requires

a lot of explanation most likely i will

not be able to answer it over the email

but i really really would like to answer

this email in the classroom environment

and there is a specific reason of why i

want to do this if i am spending time

answering your email question and let's

say i spent maybe like 20 minutes on

that you know let's just suppose that

this is a big question

then

what i'm not doing is i'm not explaining

the same concepts to other people in the

classroom so

what is the best to do is to have the

question

that is the in line with the content

that we are covering right now so lee is

sending the question that is very close

you know uh it's a little bit on the

borderline here because we're going to

discuss you know some supply and demand

but i think it's a really good preview

for our second month when we will be

diving in into the supply and demand

concepts plus lee is taking

the uh

the chart

from our class this is the chart of

yahoo

so questions like this sometimes i will

subjectively put into the content of the

class we also will have one session the

last session will all be devoted to q a

and i know that you have

so many questions about the homework

right now we will go through those uh as

well and usually homework questions

those that definitely need to be

addressed

uh during the next class you know it was

the homework review

so uh we've talked about yahoo

and we were talking about yahoo in the

context of a change of character this

was the first place where in the trend

we saw how the change of character has

happened a much larger reaction to the

downside there is not a lot of supply

that's coming in it's kind of flat i

would even say

but the

uh result to the downside

has increased even though supply has not

increased so what can we conclude well

we're still thinking that this could

lead to a change of character and

therefore a trading range and then we

need to understand what kind of bias

we're going to have in that trading

range as i mentioned to you in the

previous class and this is

the way how i establish my communication

you know and kind of like my

integrity with you guys

even here at these two spots i'm

thinking that the bias is still to the

upside

you know um

i'm not sure if somebody else anybody

could persuade me otherwise at this

point of time i just don't see any

increase in the volume signature maybe

slightly more here but the result is

even less than the first change of

character uh less supply on the next

reaction only really one day of selling

and then just you know inactivity by

sellers and more deterioration on of the

volume and the supply so we still would

be thinking that the bias is up here

and our position is going to be here i

mentioned that probably we would be

closing somewhere here on this bar and

this is how we come back into this

trading range

so and then the question

the question is about two spots or two

bars or rather you know two places

number one and number two

so we already see how the price has

deteriorated below two levels of the

support that were so important

one of them was in the middle of the

range

and was still please note the bias was

still to the upside so now at the

failure of this

we have couple of failures actually

so the first one comes as an up thrust

and there is the first failure the price

comes back into the range

so at this spot we're always thinking a

sign of strength rally

or an up thrust situation

and we'll talk about this more

uh

as the price comes back into the trading

range that becomes a failure and

therefore we start talking about the up

thrust

and up thrust

could be a function could be a part of

the reaccumulation that's true

but also an up thrust you know could be

a part of the distribution so the next

thing that we do after the failure is we

want to see where the price will go

what kind of price deterioration we will

have

and what kind of character behind this

deterioration we're going to see

so we're seeing that the price is

committing below

local support

and by itself it's a weakness

at least a short-term weakness for

and then we see the increase in the

effort behind the increase in the supply

so that suggests to us that there is

some kind of short-term bearish bias

that we should be aware of at this point

the rally which is going to be an lpsy

rally here in the middle of the range

is very weak

it doesn't even come to one half

of the move to the downside that we've

seen

since the up thrust so again more

weakness

and then a continuation of that weakness

and you know a slight commitment even

below the previous support line so we

are in a sign of weakness type of

environment supply is increasing and as

we go into those two spots number one

and number two we are creating the new

trading range that already has some bias

that we perceive perceive at this point

as the downside bias

why is that

well we've seen a change of character

this is the largest

reaction to the downside

than what we've seen before

and now we are trying to confirm that

change of character how we're confirming

that well we need to have

a rally lps wire rally last point of

supply rally that will fail at some

point at which point would it fail well

we want for the distribution this rally

to be so weak that it cannot overcome

one half of the trading range or the

height of the trading range and we kind

of see it here right so the price

uh goes up with enthusiasm to the upside

and comes to this value zone right here

and

what do we have here acceptance of this

level or rejection of this level supply

coming in at the highs of this

resistance or supply is coming in and

being observed or supply is not coming

in well we definitely see that there are

some spots

for instance like right here

where

uh first of all after the short-term

break of a trend we see that supply is

actually increasing

and this um i wonder if um lee you have

seen

this uh

you know spread and this increase in the

spread as well because it's all related

to the other two that you've you've

mentioned here actually

another uh another one right here

so let's kind of observe what is

happening at this spots

the first one

the second one

third one

and then the fourth one

actually we could even do this we could

even look at this and this

so um one of the things

that we notice right away is um

we want to notice the areas where supply

has come

and supply

has increased and it's started producing

either

a stop in action

some kind of reversal action

and then uh

synchronicity

with

the increasing result to the downside

and that's kind of like a sequence of

how supply is going to come in

supply is not necessarily right away

it's going to reverse the whole bus

it's just impossible because

you know it was the uptrend that we have

had

there is a specific sentiment that

exists uh in market participants minds

at this point of time as to what should

happen

we should be in the uptrend we see this

from

you know the sentiment we could derive

from how the price moves and from the

volume signature everybody is on board

uh nobody is getting out of this

position

uh the first time when we could see a

more meaningful

getting out of this position is going to

be in this area right here and this is

why

until then we're still thinking that we

might be in the rear accumulation

because the texture

for both the price and the volume is

such that it dictates that you know the

price most likely is going to continue

to the upside

now as it continues to the upside this

is the where for the first time we're

experiencing some increase of the supply

and for the first time it's not only

stopping

the price from moving further up but it

actually synchronized with the result to

the downside

so this is the first area of significant

institutional selling

that we see

now as we go through the sign of

weakness then we see how supply also

comes

at the lower level

so we are kind of

now in a different value zone

and this value zone because we are

looking at the distribution is going to

be described as the value zone for weak

hands this is just the definition of the

like of trading course that i created

you know for you guys and for myself

this is how we would define the values

of so what is happening here and coming

back to this question by ali

i would like to understand

what was actually happening at points

number one and two

to understand what's happening at these

two points we need to understand what

happened prior

and we kind of go into this so

the value zone for weak hands

what does it mean

it means that at this spot right here

and at this spot right here

weak hands

are buyers

and if they are buyers what do they see

the weak hands are seeing some kind of

value

so that's a very interesting thought how

could they see value at this point of

time

the trend up has been broken

the stock went into the consolidation

the stock as at the support level

wouldn't they feel more fear to come in

and to establish this position

it's a very interesting um

observation about the weak hands because

the weak hands are going to be getting

in and to the trend

either very very late

and they will be profitable

so

we can't get in

in

and they will be profitable at this

point of time and then this is going to

be the first group of weak hands the

second group of weak hands is going to

be somebody who

someone who maybe sold this stock and

did not participate that's number one

secondly maybe so the stock did not uh

uh participated but then got out

and then as the price goes into the

consolidation and especially goes back

and produces some kind of

you know move to the downside within the

confines of the structure so this is the

structure that we would be looking at

the time

the weak hands are going to see some

value and they're going to say this was

a leadership stock

and i didn't really participate i didn't

you know participate in this whole trend

but now that we are at the support this

is where i'm going to come in and i'm

going to buy

and that's how they see that value at

this spot

they're coming in and they're buying and

because they don't have a lot of

strength behind it

the rally that is being produced is not

that great

and what else is happening

even more importantly is that

into the strength

of weak hands at this point when they

see that value

institutions are going to sell into that

strength

so and we are seeing this later on in

the selling where supply is increasing

on increased volume signature and on

increased down spread look at this

spread right here

this is the largest spread on all in

this whole rally

it just tells us that the rally is done

and once the rally is done you instantly

know that this is the high of the rally

and then you start making your

assessment and deductions as to what

kind of

effect was it in the relationship to the

whole formation to the height of this

formation and you see that it's only one

half of the range that this rally has

traveled and then it met so much supply

so much selling

okay well then we go back into the same

area again we can't

thinking that this is the new

attempt to go up that is going to result

in the overcoming of the long-term

resistance

and what do we see as we come to the

same resistance point we're seeing how

supply is still increasing locally

and not only that

the downward result is increasing as

well so that becomes a reversal again

and you start questioning we've done

this two times already

and every time that we've come to this

level what happens

some institutions are selling at the

resistance point so what is their bias

their biases to the downside if they are

selling

right we see that from the increased

volume signature only

you know usually big institutions will

produce this type of signature

so therefore we are thinking about

confirmation of this bias and as we go

down on the next reaction

we are seeing a sign of weakness

the price commits below yes it comes

back so there is a sprint type of action

but we know that there was selling here

selling here

inability to overcome one half of the

height of the range and then a sign of

weakness so this could be just temporary

and we could be

just somewhere still in phase b at this

point

of this whole range

so what do we see next we see the next

attempt and this is where we are coming

in into one and two those two points

and let's see what happens this is the

highest volume signature

on this bar and this is probably just

some kind of event

and there is a lot of

optimism

on this bar

again we could see this from the volume

signature and we could see this from the

price signature this is most likely

and this is a weekly chart this is most

likely

uh some kind of you know earnings and so

on so forth

and the biggest question that actually

is asking here uh somewhere in the

description

you know he's saying that so much

movement to the upside so much effort

yet

what do we do

what is the final result

and to understand the final result we

need to understand the original intent

or intention

behind this move

if there is so much enthusiasm behind it

the intention was to overcome the

previous points of resistance that were

we were not able to overcome

and then what do we do

with all of this enthusiasm that is even

more than what we've seen before we

can't even go to the same level

so what looks uh what what looks

that

what this something you know this move

to the upside with so much strength and

optimism

looking

so bullish at this point is actually

showing us an ability

to repeat the same bullish activity that

we've seen before on the previous

rallies

is this bullish or bearish

why didn't it reach resistance

maybe this is the correct question to

ask why didn't it reach resistance what

do you guys think

well my thought here is that it didn't

reach resistance because someone was

selling into the strength

and if you think about the tactics of

the seal here at this spot

right at the point of the resistance

they are selling into the strength of

weak hands twice already

and now they are selling for the third

time at the lower level

so this means automatically that the

bias is still being confirmed as the

downward bias

and that now the value zone is slightly

lower than what we've seen before so

when point number two comes which seems

like a very logical dimension volume

signature so we might be thinking that

okay supplies dimension here which is

correct as well

but

uh what's what's not happening is that

we're not going anywhere with all of

this increase of what seems to kind of

like an amateur eye a bullish scenario

there is still an attempt to go up and

yet we can't reach even the previous

level

so again we are just confirming the bias

to the downside at this point of time

and we are interpreting the increase of

the volume signature

as still

and not necessarily

a still increase of this supply over

average supply

and then we see that supply is

diminishing

over point number one

and that tells us a different story

it takes less of the supply to produce

more bearish results

and by a more bearish result i mean

inability of the price to actually

create

you know even the same to touch the same

resistance or create a higher high

so it's a more bearish result

on less supply what does it tell us

it tells us that

we don't need so much supply anymore

to push the price down and at this point

of time demand is so exhausted

that all of the next rallies are not

going to be that

you know big

and we see it with the next rally was

the next rally and we're seeing how

supply is diminishing even more and yet

result to the downside is increasing

even more

so this tells us that there is a poor

demand

and diminishing supply signature

on the background where

the price

is moving to the downside

and that

is

ease

of movement

on dimension supply signature we are

able to move the price down

ease of movement

and that gives us a timing

to initiate the position

why well because again

demand is so poor we know that demand is

not a factor anymore

and even though supply goes down the

price still goes down so we're just

going to capitulate at some point and

we're usually going to capitulate around

the point of support so here's that

final institutional capitulation it

doesn't have a lot of supply signature

behind it so that just tells us that

most likely we're going to stop soon

we're not going to continue

for a long time to the downside

all right well lee hopefully this is

a good explanation for you and for

everyone um so really good question this

is not necessarily

the question that i was expecting at

this point but i'm really encouraged by

the you you know

the questions that are common and you

know i'm really happy that we're we're

starting with this by the way guys

today's class is gonna go until six we

have a lot of material so i'm kind of

already we for the next probably five

sessions we're gonna go up to six

o'clock

unless i have some kind of appointments

arrangements after this

lots of material so we're going to cover

a lot today

uh questions

what about effort in the result if we

see accumulation at uh at the right side

from 2002 uh

may to september of 2003 only one year

are accumulating 2003 to 2005 an uptrend

not a powerful effort

on in an accumulation

okay

um

okay so

let me just again to understand this

question

so what's the question eric

okay so

this

2005

and this yeah i'm not sure if i

understand the question eric let's just

kind of rephrase it let's just think

about this

okay meanwhile um

[Music]

small time accumulating you mean this

area right here

as a cause

or this

as a course

okay

so um

well

we could definitely apply something like

you know p and f try to see what kind of

you know objective we're gonna see here

we could see if this could match this

objective as well

um at this point of time you know uh

we're not talking about the pnf i'm

going to give you some references but

you know for

for those of you who are not familiar

you know with

pnf please go to our website there are

a couple of things that you could do on

the youtube channel

the youtube channel has two videos right

now by bruce on pnf

those are basic videos

so

go there and then after that go to our

website like of analytics.com and they

are on demand

products you could

find part one and part two

uh of uh

the two courses that we conducted

together with bruce on the pnf so i

would recommend just that path

okay great

let's move on and let's just um

uh go through the material for today so

today what are we going to discuss today

this is going to be the major work for

us today to go through the um home depot

homework review

there will be a lot of

questions that i will answer

this is the first well not the first

time but this is the time where

i'm expecting a lot of volunteers

that we are going to put on the chart

and we're just going to go through your

logic and then we're going to start

adjusting that logic as to how are we

viewing the chart how we identifying

specific events how we're thinking about

labeling and then how do we think about

the tactics and where would we be

thinking about

opening the position and so and so forth

so this might take even two sessions

uh but we will do this as we go through

the review i'm gonna after each of the

slide each of the exercise you know

we're gonna

have some kind of theoretical material

and the main thing that i want you guys

to think about and this is what i see in

your homeworks is the face boundaries

that's number one

secondly phase c identification and then

everything else you know will definitely

cover everything else

if we have time

we will talk about the distribution if

we don't have time i'm gonna give you

that

homework on the distribution

i'm going to give you the slides on the

distribution your homework will be to

read those slides through to understand

all of the work of events in the

distribution to unders and to know the

characteristics

of those events

uh and then apply them to the homework

and then we're gonna do the review

uh the same review as we've done with

the whole with home depot

uh most likely maybe not in session

number four but maybe session number

five

um

so

that's going to be the plan for today

all right with that

let's start our homework and i need a

volunteer so say yes and i'm gonna mute

you

and let's see how that's gonna go okay

let's go to

um

rami

am i pronouncing your name correctly

rama is fine rama okay rama almost like

roma like my name is roma actually

right my short name so drama that's

that's very close okay great

all right so let's look we have three

trading ranges by the way guys if you

haven't noticed some of you have not

noticed there is another one that i kind

of you know wanted you to identify

um and by the way uh rama before we

start doing this let me guys show you

really quickly

something that

[Music]

could be helpful to everyone

so

i thought that

this idea of having homework slides as a

separate file

that was a suggestion by one of you i

really appreciate this because i think

it saved a lot of time for a lot of you

guys and i know how difficult it is to

do the first homework especially if you

haven't worked with you know power

charging approach i'm sorry power

charging with um

power points with uh

pdfs and so on so forth but i was really

pleased to see that everybody is just

kind of like getting a handle on that so

i want to show you a little bit of what

i do with power charging and it will be

really quick so when you receive a slide

from me like this in in powerpoint why

am i saying power charging in powerpoint

um you have multiple options

here for instance um under the first so

you're going to be a

home tab and then look at all of this

small icons right here so for instance i

could click this icon right here and i

could create any

type of text that i want i could move

this text and put it you know

anywhere i want so for instance

something like this i'm

looking at the up thrust and i'm saying

this is enough thrust

you can copy that you could create the

new one you could change the color of it

whatever you guys want to do then you

have you know any type of lines that you

want to create

you can copy them

paste them here is your trend

um what else phases so i like to do this

for phases

just to identify

where phase is

and then

you know change the maybe like the

weight and maybe even

change the way how it looks

and just say okay uh here is maybe like

phase a somewhere here

right and then just write it down here

uh and i could change the

the size of it

and so on and so forth

so there are quite a few useful things

that you could do here with the

powerpoint and it's actually quite easy

once you get a handle on all of those

things

so let's just practice let's just kind

of like go with this um you know with uh

next homework

um and hopefully it will be easier for

you guys to

uh to use it

all right having said this

rama let's come back to you

and let's look at trading range number

one

um it's this one right here so um

one of the earliest question in labeling

that i ask students is

i want them to understand that when you

look at the

uh historical chart

uh

historical chart now you um know already

what the bias of the trading range is

and at this point in the course this is

exactly what i want you to do i want you

i want your minds not to think about the

bias first

i want you to understand that we have

been in the accumulation

and that you need to label accumulation

correctly this is the first task

as we progress to

month number two

that's when i'm gonna start closing off

the chart and then moving to the right

and unfolding the chart um and you know

as like swings or bars occurs and then

you will have to

analyze the bias and the timing and so

on so forth but for now

this is what we do we know that this is

an accumulation

so in accumulation

the biggest question that i have on on

labeling

what catches your eye aroma that is so

distinctive distinctively

different than anything else that you

could identify right away

um

the arrest of the

the descent of the price downwards the

the rest of the downward movement of the

price

okay so what about it

and uh the price uh

failing to go below that particular

level and then

and rising

from that level onwards defining the

level of support okay well let's take

that thought and let's just kind of

develop this so we were in the downtrend

and then we stopped

that downtrend at this spot right here

and then after that we went into the

non-consolidating environment we've

talked about this in the last session so

what is this stop in action how would we

call it

how would we call this event

selling climax okay selling climax uh sc

um other characteristics of the selling

climax that we could identify here to

confirm that indeed this was a selling

climax

uh

the

range of the price bars in other words

the spread

is wide

and there are multiple such bars

and

which essentially indicates to me that

the the momentum to the downside

and um

does it look panicky does it look like

somebody wants to get rid of those dogs

right away

absolutely yeah

so there is some kind of climactic run

right that we are observing

okay great yeah we know that you know

from in hindsight that the price has

stopped here this is the first spot so

usually it's going to be associated with

that climactic action with the selling

climax okay if this is a selling climax

then the next rally is going to be what

automatic rally

and then the next

low is going to be what would be a

secondary test

and that would conclude which phase

phase a

and the

intention behind phase a is what

uh the intention is to

stop the downward movement and then the

beginning of a

potential trading range excellent how

else would we be

uh interpreting or call in this

automatic rally and the subsequent

secondary test that

is a successful secondary test

um

the

secondary test

and the automatic rally

would have

volume signatures that would suggest

that it's more likely

to be an evolving trading range

but also

yes

absolutely and here again we're going

from

a down

trend environment into a trading range

environment something should happen

right here

some kind of change how are we calling

that

uh that that would be

the price failing to continue to go

upwards in other words the automatic

rally being limited by a price level

which defines the resistance okay so

that's great that's also another great

point so automatic rally will define an

area of the resistance i'm sorry the

level of the resistance and then selling

climax will define the

level of the support and we would be

thinking that the price should

consolidate around the mean in this area

um and be contained

majority of the price should be

contained within this two

you know two two levels and it is um so

that's great

the question that i'm also asking

is that switch between the downtrend to

a consolidating environment when we look

at the rally uh even the automatic rally

itself and we could see

even going into the up thrust right here

in a potential phase b

um this is is this the largest rally

that we've seen so far

um

um no on the way down this is the the

third such rally and

uh that we have seen so far i'm not sure

about that so if this is the high of

this multiple downside right so we have

rally number one we have rally number

two

there are quite a few here so all of

this too and then look at this rally

right here yeah is this the largest

rally out of all of the rallies that

i've uh identified here

right yes i would agree yeah yes so the

rally has increased

right the distance

of the rally has increased and that

produced some kind of change

it's a change of character yeah yes yes

so this is where i'm kind of like trying

to go with you here so a change of

character now we need to confirm it how

do we confirm it well

we

look at the climactic run

we are comparing it to the next rally

that comes after the

uh change of character rally

the next decline that takes place the

next decline and then

we see that again the distance

is diminishing

we're seeing how the spread might be

dimension as well we're having a high

low right here in this area so that

confirms that change of character and

the change of character is going to be

all about well something different

happens here in comparison to this or

this

every time we either have a very weak

rally and then a break to the downside

weak rally and then a break to the

downside here we have

a much better rally

so something is different

and then

we don't have the next break to the

downside

or even in some instances we might have

a small break and then the price will

come back into the trading range yeah

so this is the change of character this

is where everything changes for the

downtrend and we might expect a trading

range and it's always going to be

associated on the way in

yes

excellent

okay so now that we know

where phase a is and by the way

another you know for those of you who

are more advanced you might have a

question here and i'm actually very

surprised that nobody's asking it right

now

um automatic rally

and automatic rally could it be that we

could have you know this type of

labeling

and i'd say that i i would be totally

okay with this right so

uh because we have more of this rally

in this secondary test

that

is more of the function of the selling

climax itself

and then just a continuation of this

rally to the upside um you know i could

label this as an up thrust action right

here in phase b but you could also label

this as a much larger

automatic rally and then your secondary

test is going to be somewhere here in

this area and this could be a phase a

now

the biggest question here is well what

does it mean i mean like it looks like

so discretionary

but the biggest question here is not

actually about the labeling

my biggest question to you all of you

guys at this point is

does it really matter to your trading

how you label phase a

um no why

because it we are just looking at the

pattern as it is evolving the patterns

the nature and the pattern of the

rallies and the declines

where will you be a trigonometry

uh i would be trading at the uh the

phase c

or d

as the uh trading range as the price

gets out of the trading range and the

new trend emerges that's where i would

be trading so somewhere here in this

area maybe even better maybe like

somewhere here in this whole area why

because it's always going to be to the

right of the trading range where we're

going to originate our trades

right so does it really matter how we

label phase a

i see

i see a lot of this kind of like this

mental

you know

resistance

i have to label everything correctly

you have to trade everything correctly

you don't have to label everything

correctly i'm going to go even further

with this statement

you have to trade correctly you don't

have to analyze everything correctly and

that is counter-intuitive

because we always think that

by

making a good analysis that will lead to

a good trade not necessarily sometimes

my

you know bad analysis leads me to much

better trade

than the trade that i've analyzed you

know

a lot why is this happening well because

you know markets are unpredictable and

the only thing that you could really

control is just your actions

so if i see some kind of mistake

analytical mistake that i've made and

the market shows to me right away that

you are wrong in your analysis i could

mentally make a switch and say i was

wrong if i was wrong what is the correct

interpretation well it's different could

i take a trade on that yes i'm still in

that zone where i could take a trade on

that so therefore you know you could um

you could use it like this you know like

this mental

mental path okay so let's assume that

we're going to go with the original

phase a

cell in

climax automatic rally secondary test

then i already mentioned up thrust

action in phase b

uh so rama let me ask you this

question

what is the next point in this trading

range that attracts your attention that

you could identify right away and you

can say i know what this is

the most obvious thing

uh

the most obvious thing is the uh

a deeper secondary test that occurs

um

[Music]

in in

november

which is essentially very close to the

support level and the

behavior of the price when it reaches

that level

okay so what is it how would we label it

um i i would label that as yes yes sd

yeah okay great and there are by the way

multiple secondary tests

this is

this is also guys another thing that i

want you to start thinking about and

today i'm gonna give you so much

material

for those of you who

emailed me and you guys said i watched

the video and it was

uh

like an eye opening watching it for the

second or third time and some of you

watched multiple times

and i do believe it because

going through this

even through this chart i already gave

you probably like a dozens of concepts

that you could make a note of so for

those of you who have time

watch the recording again make the notes

send those notes to me you're gonna

receive so much value out of that

exercise okay so what am i

talking about here

we have to understand the texture

of the large formation how it forms

we could see that the cell in climax is

always going to be associated with the

secondary test the retest of that and

then in phase b brahma has mentioned you

know this secondary test that goes to

the

support level

but there are quite a lot of those tests

around this area there are one two three

four five five tests maybe even six

tests

and you kind of could see from the

texture of the price that it's all

together

it's not just separate tests

it's the testing

um

that takes some time and produces a

trading range

so when we look into this we usually

would be thinking that it should belong

to one phase and some instances we would

break this but in this case it seems

like it should be one one test and then

one phase so what phase would it be all

this secondary tests here phase b phase

b yes we still need to experience phase

b and we know that phase b is going to

be the largest amount of three phases a

b and c

okay so if this is phase b then what is

the next most obvious thing that you see

in this trading range that you could

identify and tell us i know what this is

uh

would be the

uh

there are two points i can identify one

is the uh

the

up thrust that happens soon after the

testing of the support level and the

other one is the

uh

the

low

of

the phase c

okay those are the two things that stand

out okay so let's deal with phase c

first so why is this space c

um

the

the price action and and the the price

again uh unlike the other test in phase

b

the

price gets much closer and the the

spreader the bar narrows

and

and the rally that follows that

for the first time

traverses through uh the trading range

uh commits itself above the resistance

level

and then stays above that resistance

level well some someone has been doing a

lot of homeworks and watching a lot of

videos so rama

good job um so rama has given us a lot

of

thoughts on how we could identify phase

c

i'm gonna show you the slide and you

know in couple of other slides that we

have to cover first

um on how could we identify phase c this

is going to be one of the

major um kind of shortcuts that i'm

going to give you guys so phase c is

going to be

associated with

the

number three

or

last

test

at the level of the support

so where is the first test

well naturally after the climactic

action in phase a that's number one and

that's at the support level even though

it comes so high but it's still testing

the local stopping action by selling

climax

test number two naturally will happen in

phase b

and this test number two is just too

complex

because there is a selling climax

there is a whole formation with the

selling climax automatic rally secondary

test phase a phase b phase b

um

even this phase b up thrust phase c

so it has its own trading range so it's

just a complex trading range and a

complex uh process of testing that we

are observing here but this is a test

number two

and then phase c

always will be a test number three

at the level of the support that's very

important because test number four

is going to be at the level of the

resistance that uh

that

was created by phases a and b we will

come back to this later on

we also know that phase c is going to be

the

lowest

low

in the uptrend

and because we look at the

at the chart where we know what has

happened before

where did uptrend has started

one might argue that well we had to

start maybe like somewhere here in

december of

85

and then we have a higher high and the

higher low

one might argue well maybe even up low

prior to that november

but for us what's important is to

understand is that there is still a

trading range that unfolds it's a

non-trending environment

so therefore there is no really a trend

until it hits the law of phase c and

only then

we would be seeing some kind of uptrend

now we'll have some other different

definitions on this subject where we

might have even the low in phase a and

that would you know establish the whole

trend but we still would be going

through some kind of consolidating

accumulative actions you know prior to

that so the lowest low when you look at

the historical chart

could define phase c

for you really easily

that's where the trend starts we also

will talk about

a second point of fear

in phase c so that second point of fear

either is going to be associated with

the increase in the volume signature

where we can't

um are going to capitulate

and that's going to produce that lower

low

or

we could have you know like in this

instance a very big distance to the

downside right so reaction might

increase

um

and that could produce you know uh

you know increased selling behaviors by

weak hands and they will be trying to

get out and there might be some

acceleration around the support here

um what else we also

said that there are some characteristics

for face c that we need to understand

we definitely

know that the reaction should have some

kind of bullish signs

and rama has mentioned those the

downward spread is diminishing

relative to what we've seen let's say in

phase b or on the climactic run in phase

a

we could also see that maybe

with this dimension

downspread action the volume is also

diminished that could be a possibility

as well and kind of a laborious move to

the downside instead of very quick

uh you know sign of strength type of

move to the downside so that's the big

difference

okay so let's come back to our labeling

phase a

phase c

so everything in between is phase b

and we see two instances where the price

overcomes

uh the previous high in a very

insignificant way uh in the first time

first time it tries to commit to the

upside actually the first time was here

uh in phase b so up thrust action in

phase b then the second time it's just

an attempt to commit and then the return

and then the third time there is a

commitment and then a return back

so all of those instances are going to

be up for us

there is only

only one extra definition here that i

want you to know

this rally right here that looks like a

rally in phase d

and some of you who are more advanced

are probably just thinking okay well why

is he not talking about this why

why is this not a sign of strength rally

why is it not identified as phase

d

well look at the next reaction that

comes after that

it actually negates almost all of the

gains that we've seen on this rally and

we've just identified phase c low

as the law of this reaction so therefore

whatever we are observing all of this

moves to the upside are most likely a

part of phase b

now in phase b we could have up thrust

and some of them are going to be quite

significant

the ones that are showing us some

bullish activity

and that are going to look

like

a phase d sign of strength

could be labeled as upthrust action

as

a minor

sign of strength

whereas the major sign of strength is

still going to come in phase d right so

we could have a major sign of strength

as like this rally

and then a backing up action into the uh

into the lows of the support that acted

before is the resistance so this could

act as a backing up action so this big

rally is going to be a major sign of

strength

and then this smaller rally in phase b

is going to be an upthrust action as a

minus sign of strength and that's that

distinction that i want you guys to give

all right uh let me quickly just

see what other questions we have um

isn't phase a important for closing of a

position from philip um yeah absolutely

here at this point we're gonna be

facing a lot of trading decisions i

would keep in the position if we are

correct

um on our bias and if we are in this

trade

also some other decisions not for those

of you who are in this position at this

point of time let's say somebody is

looking at the stock and identifying

maybe you know

some kind of

interest in the stock so in phase a what

kind of trade trading decision we're

going to have at this point most likely

not

but that's a decision on its own

not to participate is a decision

not to be involved not to get um

you know your risk exposure at this

point of time is a trading decision

doing nothing sitting on your hands is a

trading decision

um so yeah so those type of decisions

are going to be important in phase a

is there a sign of strength rally after

december secondary test so we've just

covered this yes it's a sign of strength

rally but that's a minus sign of

strength rally

in

phase b and not in phase d

uh where would you place the trade in

phase c okay good question that comes

from justin

um so we're looking at how the price

moves to the downside and we're looking

for any points of the reversal right so

move to the downside

no reversal

move to the downside no reversal move to

the downside

no reversal

move to the downside

oops

reversal

which would equal our point of entry and

that would be our first point of entry

our second point of entry

could be this bar right here

our uh

next point of entry will be somewhere in

this area

where we are experiencing a backing up

action

and our

fourth point of entry is probably going

to be somewhere here on the breakout

this was not the most efficient in this

case entry but still with your stop

losses it shouldn't get you out so all

four points of entry you should just go

through

okay uh what else

is it reasonable to take a trade to

upside in early january

considering reaction looks like a

backing up action yes

um and if you're thinking that this is a

backing up action let's say

oh i see right here okay got it

okay yeah this is a good question but

again we're coming back into the point

of um you know how do we actually manage

the position meaning how do we actually

come in into the position right so we

need to see some kind of reversal of

this initial move to the downside there

is no reversal so there is no

entry and that would save us from

entering prematurely uh and from

exposing ourselves you know to the

remainder of this reaction

why is not a backing up action between

february and march

this one right here yeah it's a backing

up action

again it's just minor

right and then this is a backing up

action this whole formation

and it's a major

right so

quite a lot of distinctions already guys

that i've given you so

you have to

take notes and you have to remember

those all right drummer really quickly

let's talk about the distribution

so

um what is the most obvious thing that

you see in this distribution

in that small area of distribution the

most obvious thing is the um

price action that almost resembles uh

buying climax the very first bar what

are the characteristics of this buying

climax that we see

um

widespread rapid rise of the price to a

new high

and when compared to the previous high

quality

right

and then

it's immediately followed by an

automatic reaction

and

and

and then

that was that is followed by a secondary

test which tests the highs of previously

established heights please note there

are quite a few secondary tests here the

first one is going to be an attempt to

retest the buying climax that would

conclude phase a okay let's finish with

the buying climax what else

gap

yep

is going to be a part of that you know

climactic stop in action actually as you

look through this

intermediate stop in actions this is a

buying climax it's just intermediate and

look how gap is happening here look at

the move uh look at the gaps here

are also buying climax also buying

climax on a very very small scale

but we kind of see that this analog

repeats over and over and over again so

yes a lot of climatic action and what do

you think the volume signature here is

um you're more likely to be a

moderately high volume

okay

something like this i wonder why

moderately i'm just really curious

um that's because the the

the extent to which the price has moved

when compared to uh the previous high on

the left side around just before june

uh

leads me to suspect that the

volume might have been only moderately

if it was uh climactic volume you would

have i would have seen a price go a

little bit higher

interesting okay guys for those of you

who can quickly find me the volume

signature and maybe send me the picture

through the chat or something like this

i'm now really curious

um

my first thought would be that because

the next area is the reaccumulation

you know the volume signature is going

to increase but probably more locally

that's number one

um

and we probably would be thinking that

that would give us you know just an idea

that we're going to go into the trading

range with the bias that is going to be

to the upside

so therefore not a lot of supply

signature should be there on the second

thought

you know looking at all of these buying

uh climaxes you know to the upside

we're seeing that there is a a big gap

to the upside so there is some kind of

event here that stops this whole

movement so this event should have you

know an increase in the volume signature

for sure plus the whole day it just goes

goes up

so that should you know have some kind

of demand behind it

uh especially at the higher levels

over the resistance so

i wonder what the volume signature is

okay we'll come back to this so bind

climax automatic rally secondary test

our phase a is defined what is the next

phase that could be easily identified

right away

uh phase c

again the uh the the price were where

the price comes and

test the support level

and uh followed by a

second we are discussing a distribution

right so with the distribution we're

going to have this type of the schematic

where phase c

is going to be not at the low but at the

high

yeah so where is it

it's uh

right at the

july level yeah which yeah the price

commits temporarily above the point of

the uh level of the resistance so how

would we

label this then

obviously phase c

yeah

and how would what is this wipe of event

the price commits the parallel above and

then comes back into the trading range

because this is distribution of the uh

right after us after distribution

everything between phase c and a is

going to be phase b and phase b we're

going to say okay there is a little bit

small up thrust here in phase b

uh there is uh

multiple secondary tests and then as the

price goes down and we see that the

price has some tail right here it's very

hard to see

how would we identify this action

obviously in phase d now

so this first

at least attempt to commit to the

downside you know how would we label it

[Music]

that

that would be labeled as a last point of

supply

okay so the rally will be the last end

of supply but the move to the downside

from the high of the up thrust to the

low of this reaction you know this this

whole move right here that would be what

um

think about

phase c low and accumulation and move to

the upside the opposite to that to the

downside downside yeah

sign of weakness

yeah sign of weakness yeah sign of

weakness so it's a little bit condensed

here

but here it is

sign of weakness lpsy and then off we go

to the downside okay great so uh

distribution has a very small cause

so therefore

the downtrend

should be also small

and we kind of see that okay well then

uh then next we look at the

reaccumulation range again

okay so what is the most obvious thing

that catches your eye aroma

the most obvious thing is the

the price

leveling off after the sign of weakness

and the last point of supply it

establishes a a

price from which there's a rally that

takes place okay so we're

seeing the low that has been created and

then um then we're seeing a move to the

upside now this rally

is this

uh is is this rally much better than the

rallies that we've seen uh in the down

move during the time i've said yes

absolutely so what does it mean to us is

this a change of character

yeah change of character change of

character at this point of time a change

of character would suggest that from a

downtrend we're going to go into

non-trending environment and we're going

to look at the trading range trading the

trading range here again the questions

that we're going to address with the

trading range bias

timing

character

right okay so and also

change of character is going to be

uh

be associated always on the way into the

trading range with phase a

okay so if this is phase a then what

kind of you know phase a like of events

do we have the stopping action is going

to be labeled as

kyle

um yeah

it

it will be labeled as

a local

selling climax yes and i like that you

know local definition okay great so

selling climax the first rally

uh that would be automatic reaction

reaction and then the next test that's

going to test the selling climax is

going to be

a secondary test

and that would define phase a for us

okay so then what is the next most

obvious

wike of advance uh if event that you see

here

um

a rally that

goes above the level of the resistance

and

doesn't commit itself to

the price level above and

declines into the trading range so kind

of like this type of action right like

we have this optimized and then we come

back into the trading range and it

happens at the same spot right so right

after phase a so acts a little bit as an

analog you know to what what is what

we're seeing here so we're saying

upfront

at this point of time looking at this

route

you're looking at the character of this

rally

could we say that maybe this rally acts

even as a kind of like a minus sign of

strength here

yes i would say so yeah look at the

character the price moves so quickly to

the upside

it commits on actually multiple closes

to the upside actually maybe just uh one

or two

spend some time there and this is what's

interesting sometimes up trust look at

this up to us goes up

commits really quickly and then by the

end of the session it already shows some

supply and then the next day comes back

into the trading range this one is

different

this one has three days

that goes above the resistance and then

look at the time that dispense maybe

like two weeks

above that uh

that point of the uh point of resistance

so what does it tell us it tells us that

there is some kind of strength behind

um the price action

strength in the background yeah and that

strength guys you know it's not

indicative of the timing

by no means think about that oh my gosh

the strength in early let's say phase a

or early phase b

um you know we should go go in into this

position now this trend just suggests to

you that this is a reaccumulation but it

doesn't suggest to you the timing the

phase analysis is going to suggest to

you the timing as to when we should go

going into this position but this

strength suggests that the bias

could be to the upside so now you're

just looking for the confirmation of

this information is it really that the

bias is to the upside

because we're just still too early we're

in early phase b at this point of time

okay great

um so what's next if this is by the way

if this is uh biased to the op site we

would say that this is enough thrust

action rather than an op thrust okay

well then

what's what's the next thing that

catches your eye

right the next thing that catches my eye

is the disconfirmation that is

you know up until this time the strength

of the rally and the commitment of the

price to the resistance level above the

resistance for a few days

tilts my bias to the upside

but

the on that bias i always look for to

see

if that is going to be confirmed by the

subsequent

price action in this case

the subsequent price action is

indicative of weakness

so it comes down it price declines

okay so we're talking about this

right

and then and then it comes and produces

another secondary test okay well let's

let's kind of grab this idea here from

rama um so

he's saying that uh you know to come

back into the trading range we which we

would expect by the way in phase b

we've tested uh this is a secondary test

it's still in phase a and this is the

first test in phase b this is the test

at the level of the resistance and we

should have

a test

in phase b

at the level of the support

as well

phase b is going to test both resistance

and the support and we've seen

we've seen how um roma has described

that there is some supply

in or increase of the supply that we see

in the spread in the download spread

that suggests what that suggests that if

supply is increasing we need some kind

of retest of that supply

and

usually the more supply we have

the more testing we need to be

to be doing

and the more testing we need to be doing

that would suggest that we might go on

some kind of trading range so we just

and we're already in the trading range

here we're just kind of like

thinking that it's going to prolong the

trading range okay well um if we had

one

test

uh which was an up supposedly you know

up thrust action test

at the resistance

then the next test is going to be at the

support

so how would we label this test in phase

b

i would ask

still label that as a secondary test

yeah

secondary test we are not overcoming

the low that was created in phase a so

this is a higher low so therefore um you

know the higher low

in phase b

would be labeled as a secondary test

at the level of the support

and then a lower low in phase b

would be labeled as a secondary test as

a sign of as a minus sign of weakness

okay so

this is a secondary test but which one

there are quite a few here i'm looking

at this i'm looking at this i'm looking

at this i'm looking at this i'm looking

at this

uh i would say the second one you know

the one you know marked

where the price

it reaches the lowest point

among that cluster of uh

tests

got it so rama is saying that this this

point right here is our secondary test

i would probably um

you know have an argument here with

urama because

look into this area again how did we

approach it

we approached the whole formation

as

three tests in different phases

and that's what i want you guys to start

practicing i want your eyes and your

mind to see this

there are formations that are together

and i'm gonna highlight this

here is a formation where there is an

action and then there is a test

there is a another formation where there

is an action and there is multiple tests

of this action

and then there is a third formation that

is an action and multiple tests after

that

so i want you to start thinking in these

terms because

we will be

defining the texture of the whole

trading range as you know the uh

construction

uh

of you know smaller pieces that come

together

and

locally when we say locally then we mean

that this test is local to the selling

climax or this multiple tests are local

to the climactic action that romer has

identified here

or maybe this tests are local to

you know the initial selling clinics

that we have here

rama do you see that

yeah

okay so maybe something you know to kind

of like work with the next homework just

you know identifying those areas

yeah different textures

um but different tests but you know they

all create the same structure okay so if

we're talking about different you know

textures and

structures within the logic structure

then as we've identified tests here and

identified the phases there then i could

say that if this is test number one

test number one is going to be

associated with phase a

this whole thing is test number two

associated with phase b then this is

going to be as be associated with

c

c

okay and that's how

sim

you know how simple it is for us to

think about this

uh

you know um even though it's such

complex structures that we see you know

in test number two and number three but

they all

uh actions around the same area right

they are all

uh the tests of the action that we see

prior

uh you know to test an area okay so if

this is the case then let's relabel this

phase a

then phase b probably goes to what to

this point right here right yes yeah

yeah

and then

phase c is gonna

either be concluded here or it's gonna

be concluded here

so we have two scenarios here

okay so how would we

let's say

is there any other labeling that we need

to do here where is our phase d

um

i would consider the

second uh c you have put there as d more

d rather than c okay and

and i would uh consider the first c to

be the real phase c because of the uh

the

signs of strength i see it's making

higher lows

and um

and that to me is the beginning of the

new uptrend and uh okay

okay yeah i like that

um at the same time i would say that

there are probably two ways of how we

could label this

uh so let's say phase d labeling

at this point

okay so two ways uh the first one is

exactly what rama is describing

we are in phase c here

in the smaller formation then look at

how

a rally is committing to the upside

over the uh what seems to be an apex

formation and we know that in the apex

formation the sign of strength is

actually not going to be very good you

know it's not going to be extremely

distinct but what it's going to show out

of the place of uncertainty

right where both buyers and sellers are

inactive

they just waiting for new information to

arrive

uh you know either to act on on the

buyers or maybe to add to the buy so

maybe to close the bias that they have

so at this point of time a small sign of

strength suggests that there is a little

bit more buyers and they you know supply

is exhausted at this point so we could

move the price much much easier

so a sign of strength in the apex

formation is always going to be that

small thing

and then the backing up action

comes exactly on the second reactionary

leg to the resist down slope and the

resistance so that acts as a backing up

action and therefore this is phase d so

this is what we have apex

and then a sign of strength that is

going to be

just a little bit small

and then the second label in here which

is also acceptable

is going to be more about

a much larger phase d right so

we could say that this

move to the upside that overcomes the up

thrust action and the buying climax of

the distribution formation

is a major sign of strength and by

definition the price goes through the

trading range commits to the upside and

look at the commitment so many closes

above so this is a really good

commitment to the upside

spends some time in there and then

reacts exactly to the area of the

support that acted before as the

resistance so therefore we could see a

major

sign of strength with the major backing

of action

and then we would identify this as a

minor sign of strength

so that labeling is also acceptable

please note that for triggering purposes

again

it doesn't really matter

why

well because if you're identifying this

as your potential phase d

then your position in

reaccumulation is going to be

most likely the first position is going

to be opened in phase c

your second position is going to be uh

and third your

second third and fourth position are all

going to be here so from one to four

all of this is going to be very active

zone for you to

act on

and then after the major uh sign of

strength and the major backing of action

that's number five

that you would be thinking of opening so

from that perspective doesn't really

matter you will still be operating in

this space

you know you still will be a barrier

here

all right rama really good really good

start i definitely feel

a lot of kind of like

knowledge that is already there

so a lot of

i also hear a lot of correct semantics

that are

associated with this course

you know so

uh you know so a lot of things so just

continue and for you specifically i

would say nuances details are going to

be extremely important right

okay so just

you know absorb all of this knowledge

and just make notes and you know

concentrate on those details

yeah

all right great thank you

thank you

i'm sorry around my music too okay

all right let's quickly look at that

question that we had and thank you lee

for sending this chart that was really

quick and cool and sometimes i'm going

to request you guys i don't want to be

distracted but you know you guys could

uh definitely quickly find what i'm

looking for and email me so we were

looking at this spread and we said that

most likely

the volume signature is going to

increase here

why well look at the gap that's number

one so that usually is some kind of

event probably all well definitely

overnight event

um where institutions have not produced

so much excitement before like any other

gaps that we see on the way up they are

much smaller

right

and

this is not a gap

and then

this is a huge gap

and the huge gap is always going to be

associated with more interest from

institutions and we see a continuation

to the upside and actually i forgot to

mention that you know this change of

character bar

most likely is going to have also a very

high volume signature just because of

the function of the supply that came on

the buying climax itself

so that was a really good call and then

also

this is going to be one of this

exercises that i'm going to give you

guys in the practical

when you're going to graduate to more

advanced level

one of the things that we practice in

the practicum course is

reading the volume signature of the

price and reading price signature of the

volume

what it does it kind of opens up the new

dimension of understanding

as to what do we expect the volume on

the price to be

on the specific bar whether it's the

price or the volume bar

and that's exactly what i did here just

kind of like deducing as to what kind of

volume signature could be at this

contextual place with this particular

bar

all right great

uh let's

let's

look at some questions really quick

uh which is the different uh what is the

difference between labeling secondary

tests after the selling climax so label

in a shakeout recumulation versus

shakeout schematic okay yeah um so this

was the question here um selling climax

automatic rally could we possibly label

this as a shakeout um yeah we can um

usually the shakeout

in the reaccumulation is something where

we have the buying climax

and then we have some kind of shakeout

right away

we don't have it here we have a buying

climax and then we have an area of the

distribution

and that usually suggests that

distribution usually suggests what

there's going to be some kind of

downtrend that's going to come and

downtrend is going to be

concluded with the stop in action which

is going to be labeled by us as a

selling climax so my preference in this

particular case would be just to label

this as a cell in climax and extend the

boundaries you know from the selling

climax and uh from the automatic

reaction or automatic rally or rather

and then in the air in the uh

reaccumulation structures where we have

a very quick move to the downside

without a lot of the distributional

activity you know you could say like

okay this could be interpreted as a

shakeout action i will keep this in mind

and i will point this maybe on other

slides

okay next one

uh if we were in september

and i'm assuming what september where

this september or

and this question comes from philip

or this september okay so probably this

one right here

so um

if we were in september wouldn't we

interpret the rally

as a phase d with backing up action

right before september this one right

here

okay and the backing up action to what

to which range to this one

so backing up action should be

coming back to deformation right

to their original information so we have

for instance

we could say that

here we have a minor backing up action

and it's a part of this formation then

we have a larger backing up action

major

backing up action and it's a part still

of this whole formation

uh

you know if if we would have some kind

of you know

formation that would be something like

this where

you know we've seen that maybe this

whole move is a sign of strength and

then this is a backing up action that

has its own trading range then probably

yes uh we could do this i think it's

less obvious in this case uh philip so i

probably would be just thinking that uh

you know it's just a trading range on

its own it's a reaccumulation

we had an accumulation range you move up

and now we are just in the

reaccumulation

okay but good clarifying question there

is it common that one can identify

phases of the larger range with smaller

local ranges within that larger range uh

yeah um

we could definitely do this one of the

things you know again to do is that you

know texture analysis right so

if you could instantly see that there

are smaller ranges here that could be

labeled by the way i mean look at this

cell in climax automatic rally secondary

test

phase a

b b

c

sign of strength backing up action or

lps

um major sign of strength major backing

up action

cell and climax automatic rally

secondary test phase a b

b uh c

sign of strength

uh shakeout type of reaction in d

lps

here we go this one cell in climax

automatic rally secondary test phase a b

c

uh

lps and so on so forth so you could see

how you could label

uh even smaller structures and again you

know we could label this structure right

here we could label this structure right

here this structure right here this

structure right here

everywhere there are trillion ranges if

you just get this concept

that you look at the markets through the

prism of different structures whether

it's

a trend or non-trend whether it's at the

higher larger time frame like you know a

large formation

or a smaller formation like this three

that i've shown you by the way here is

another range here is another range

right so all of those are just

ranges between the swings

of the trading range if you can

understand this concept and it kind of

becomes natural to you

you will start looking at the market in

a different way and usually

um during the first months you know i

receive a lot of emails from students

that just say like oh my gosh

i look at the markets i look at this

chart and all i see is just all of those

formations and it

so much easier for me now to interpret

the market action you know through those

formations so hopefully we'll get to

this point

all right um

okay what else

okay so a comment from

dog

actually um

[Music]

preliminary supply in may

and then

buying climax in july so

two to two

what are we looking at this

preliminary uh supply

doug

is this is this the one is this

deformation that we look at and buying

climax in july

like this

what's that your interpretation dog

to the right for

this is the preliminary supply this

okay

great okay so um so darker suggestion

what about this type of labeling right

so buy and climax then obviously we

could go with either cell and climax or

we could go this whole thing with the

automatic reaction and then secondary

test this could be phase a

and then let's say phase b

and then phase c

uh

on the level of trading

because we will be trading here

that doesn't really matter

and if you label it like that that's

fine where i have the problem with this

labeling is these two points right here

so i'm going to redo this a little bit

and then you'll see what i mean

so

let's say that we're still in the

automatic reaction secondary test phase

a

and then it goes into phase b

and phase c this is doesn't really

matter to us but what comes before

when we put let's say a buy in climax

right here

as this point

we're basically neglecting the fact that

the buying climax characteristics

happened before that and we went through

those a gap acceleration to the upside

climactic run acceleration of momentum

extreme volume signature which just

basically screams at you

and tells you that

if it stops on this climactic action a

climactic volume then most likely this

is a climax so it's the character

that does not allow us to say that this

is a violent climax

so therefore

the second point here is that it has its

own formation

so what is the bias of this formation

the bias of this formation is the

distribution so therefore we would be

labeling this as an up thrust in phase c

so therefore the preliminary supply is

going to come somewhere here

so that's the only thing that i would

redo but everything else again for

trading purposes you could say that this

whole

thing is the pine climax so sometimes i

would say bind climax trading range what

does it mean this means some kind of

distribution local formation that would

take us down

uh but

you know i would never i would probably

not identify this necessarily as a

buying client so this whole thing you

could say a buying climax trading range

all right

great thank you doug

and what else

i thought that phase in phase d i should

search for biggest rally of the whole

range starting from the support level so

the part of uh the first phase c should

be in phase d so from philip so we're

talking about this spot okay so yes

when we look at the horizontal range

we're looking at the sign of strength

and the backing up action

as our you know change of character

uh confirmation

and usually the sign of strength rally

will be the largest rally

in this whole trading range

and that's in the horizontal formation

like this right in the

apex formation

where there is a lot of inactivity

by market participants as small as sign

of strength

uh you know could be that timing

mechanism that defines a change of

character so we would be looking at the

um

at all of the rallies that occur after

the last point where supply has

increased or supply has produced

some kind of downward result that was

exceeding the result to the downside

before

and we see that the rally there

this rally is basically the best rally

that we see in in this formation

so it's a little bit of a nuance

we'll talk about this later on

but i'm so happy that you guys are

seeing this that you're asking the

correct questions

because if you're asking the correct

question this means that you know the

logic that we explained before was also

you know good and we just did not cover

this so that's great all right so really

good exercise all right

okay so um with each of these slides for

the homework i'm gonna give you guys my

interpretation and you could go through

this

as a homework and just um you know

observe all of the labeling that i've

done here

in these boxes gray boxes i'm

identifying

changes of character

and so on so forth so um

hopefully that's helpful now let's talk

about phase boundaries so this is that

theoretical slide that we're going to

have and we're talking about

accumulation here

so how do we define phase boundaries

it's extremely important for us to

understand

where we put the boundary and sometimes

it becomes so subjective that

um as i was

receiving so many questions from

students i realized that um i need to

kind of like you know stop all of this

discretion discretionary talk as to

where we are putting the batteries and

that just to define exactly

where we would put that

border between phases

so let's go through this and we're going

to start with something slightly

different the first thing and this is

one of the most important thing

right now at this point of the course

that i want you to remember

i wanted to remember by heart the

sequence of wike of events

uh throughout all of the phases in

accumulation and the distribution

and uh therefore i just want you to

remember that phase a is going to start

with the preliminary supply of support

go into the stop in action by the

selling climax

change of character as an automatic

rally and confirmation of that change of

character as a secondary test that

secondary test is going to be a local

test and test number one to the salen

climax

phase b

is going to have in the accumulation

either a secondary test

at the support level

or an upthrust action

at the resistance level so these two are

mechanisms of testing

testing what testing both supply and

demand at the support and the resistance

level

in in the instances when the price is

going to overcome the resistance we're

going to say that

we're looking at the up thrust action

sometimes i label it as

up thrust action like this uta

um

and then if we are going to have a lower

low then we're going to label it as a

secondary test

as a sign of weakness as a minus sign of

weakness actually yeah some small

corrections here are needed

phase c

is going to have either a high low and

we're going to label it as a last point

of support or it's going to have a low

low and then we will be talking about

either a spring or a shakeout

phase c also could have as a test not

necessarily a secondary test but a local

test to a sprint

or a shakeout

phase d

is going to have

last point of

support sign of strength bar

sign of strength rally and the backing

up action usually phase d will be

discussed

mostly around sign of strength rally and

the backing up action a sign of strength

bar

has been added you know to them to the

methodology by me just you know for the

class purposes

this is the spot where in the middle of

the range we're identifying emergence of

institutional urgency to buy to be in

this position and this is one of the

points of entry for us in accumulation

on the way up we'll talk about this more

last point of supports are going to be

all of the reactionary laws

on the sign of strength rally that

present some kind of buying opportunity

those are going to be short-term

weakness

situations where we're going to say that

the

long-term bias is to the upside but the

short-term bias has some kind of

weakness bearish

bearish bias behind it and those are

going to be the spots that are going to

be associated with establishing or

adding to the position

then we've talked about two changes of

character in the ray accumulation

and um

you know originally again

i've talked about this

originally when i was studying like of

method and you know hank was introducing

me to this concept hank had a concept of

the change of behavior he never actually

specifically talked about the change of

character so change of behavior was

basically

identified in

late

phase b

and

in phase c

and in phase d

and what hank was talking about is

a changing behavior as

uh

behavior on the rally could become more

bullish

um

and then behavior on the reactions at

some point could become more bullish as

well so for instance when we look at

this chart

and we look let's say maybe at

this reaction right here for the first

time reaction creates a higher low

so that's a change of behavior it's not

necessarily a change of structure

because the change of character is a

change of structure but the change of

behavior is not necessarily as a change

of structure per se you know where we

are um

where we are uh confirming the best

rally the sequence between the best

rally and the best reaction right so

here's that sequence the best rally and

then

the best reaction

so here it is

throughout this whole range

so that

is a change of character but change of

behavior could be just a better rally

and then the reaction is still bearish

or

um usual rally and then a better

reaction

so that would be a change of behavior

there are two changes of character that

i mentioned our first change of

character is going to be associated um

with phase in

with phase a so it's the change of

character

in

into the trading range and uh it's going

to be defined as the rally between a

selling climax and automatic rally

and it's going to be confirmed by this

secondary test

and then the second change of character

is going to be

on the way out of the trading range

in phase d and that's going to be a

rally between phase c low and sign of

strength rally high so here's the high

here's the low here's that change of

character and it's being confirmed by

the backing up action after that

phase boundaries so this is very

important

this is something that i was looking at

in all of your homeworks today

so let's go through this how do we

define the boundaries so let's talk

about the boundary between

phase a and phase b

well what do we see what do we have to

see there so we want to

identify a secondary test as the

conclusion

of phase a

and then it's around this area this is

where we would be looking for the

reversal

once we identify this reversal this is

where we're going to put the boundary

of between phase a and phase b so why

why would we do it like this well

obviously we want to include all of the

points of phase a

which is preliminary supply

selling climax automatic rally

secondary test and then we want to

identify the ending

of secondary test and secondary test is

just a reaction

so we want to find the reversal

of a downswing

that acts as a secondary test and once

we find this

bar

that's where

we're going to put the boundary

between

phases a and b

we're gonna do the same

with

the boundary between phase

c and phase d

and in this case it's a little bit

easier because we do have another test

and that test is also

just a downswing

so for this downswing we're going to

look for the reversal

and the reversal bar is going to be our

boundary between phases

c

and d so it's somewhere here

and then

the boundary between phases b and c is a

and by the way let's just do phase d as

well right away so kind of the same

concept right so backing up action is

going to be

a reaction so in the reaction we want to

see to look for the reversal

so

here it's a little bit more complex like

it was here as well so we see the stop

in action and then we see a minor test

so it's out of this minor test that the

boundary would occur we see here a

reaction and the test to this reaction

so it's out of the you know that test on

the reversal of that test this is where

the boundary is going to be created

now face

the boundary between phase b and phase c

is a little bit more complicated

because basically we need to understand

the intention behind phase c which is

what which is testing

this is the final test at the support

level so therefore from this definition

as this is the test

we need to find the place in phase c

where the there is first attempt to test

uh the support level and we usually look

into phase b lows

and we are saying okay where is the

first time

when the lows of phase b were

tested

so somewhere here in this area

so and we want to put the boundary

exactly on this

level where the test has happened for

phase b

so this is how we define the boundaries

for all of the phases i really guys

would like you to stop here you know

stop the recording

make some notes think about this maybe

take a chart just to go through that

and just to think about how you put in

those boundaries

all right

great

let's go to the next slide so we are at

ten to five so we have still maybe an

hour and a half hour and ten minutes

all right so um say yes if you would

like to volunteer who's next all right

just gonna go with the first one phillip

you have to unmute yourself

philip

how you doing

do you hear me yes just speak up a

little bit

okay sorry yeah closer to the microphone

okay great all right am i pronouncing

your name correctly philip

yeah thank you okay

um so let's look at the first trading

range

what is catching your eye

uh well probably this setting climax

which is where the large swings

just label this for you point number one

point number two

uh

three and four okay which one is the

selling climax

uh number two the first would be the

prelim

support i think

okay so let's start with this

preliminary support selling climax so

let's go through the logic of this

labeling

so we know that

um selling climax has to be the stop in

action right and then

after the

stop in action what should happen next

uh automatic rally

next is going to be automatic rally an

automatic rally is going to be

associated with

what else

with what kind of

change of behavior change of

character

given

out

right so we change our character

so a change of character

is going to look

uh like what

why is that uh the change of character

what would we see on this rally that is

going to be so different than what we've

seen before well maybe a

bigger price

swing than before in the rally before

and maybe a little bit bigger volume

okay

great and specifically maybe in this

case because this is an accumulation

after the downtrend demand signature is

going to go up right so the distance of

the rally could increase the volume

would go up the demand is going to

increase

the up spread is going to increase right

so

where for the first time

do we see

this type of price action

and volume action as well

uh

well maybe

between one and two

yeah this first rally right from this

low

to this high

yeah that looks that like that rally

that you've just described as a change

of character why is that

well the distance for the rally has

increased right looking at the previous

attempts to rally where is it well

here's one there is another one and this

is the high uh you know of that of that

downswing so this is the largest

reaction to the upside

look at the spread it's increasing as

well what can we say about the volume

signature by the way philip

just looking at the spread itself what

do you think the volume is doing here

oh well increasing hopefully

okay and why do you think it's

increasing

uh

well because um there it's it looked

like there was a fight between where

where the ending price will be and

before like the difference between the

range of the tick and the

of the weeks and the ending prices i

think yes absolutely we see and what is

this fight how would we call this fight

it's the fight of volatility

right so there is a climactic run to the

downside that increases the supply

tremendously i mean we're seeing how

uh it's a general capitulation here it's

not institutional it's not public

capitulation everyone is capitulating

here

there is a gap to the downside big

spread to the downside the first initial

momentum is to the downside

so this day on the intraday level is

going to look like this previous close

maybe open

i'm sorry open is going to be at the low

here so this is open

and then momentum is going to carry us

down first

that's going to be my first initial

assumption then we're going to have the

rally

and then it's going to carry us to the

close of the previous day

so that's how the action would look like

so supply has increased then demand has

increased

and then supply has increased again so

there is a lot of volatility during this

intraday action

which brings basically the volume

signature increase and then most likely

some kind of spike on that date

so therefore a fight between the buyers

that sellers creates volatility uh which

volatility and volume is just you know

so connected together and increasing the

volume is just you know suggests that

there is an increase in a potential

increase in volatility

okay uh great so if

now if this is a change of character

then where is our selling climax and

automatic rally

okay well uh so the

selling climax should be the lowest

point of this okay yep

automatic rally and then the next move

to the downside is going to be what

uh

secondary test secondary test could the

secondary test be

a low low

yes it could be yes it could be it could

be a high low it could be at the same

level it could be a low low

the key is if this is a low low does the

price come back into the trading range

or not because if it doesn't

then you know it's not

a stop in action it's just a

continuation of the downtrend we could

have a

for the secondary test yeah okay great

so this

concludes phase a what's the intention

behind phase a

uh the change of character yes the

change of character and

to stop the downtrend from going further

down right so stop in the trend and then

change the character with which the

price

unfolds okay phase a and then um

what catches your eye next

um well the two

uh

two weeks who which are in at the bottom

of the range

yeah yeah the two ends are free

okay so

kind of like

quite a few tests here right so smaller

test

uh big test bigger tests so if we would

be talking about tests the magnitude of

test probably we would say

secondary test number one that was a

local test

you know to

sec uh to selling climax

test

to selling climax

and then these two tests look like the

same magnitude but their dimension and

size which basically tells us

that 2 and 3

in the downward distance

that is dimension is a bullish sign

and then look how high they are relative

to the selling climax

and relative to anything in phase a so

that's an

almost like extra bullish sign

that we have so that's all about bias

okay so that's great

um but then how would we

label those

uh you know two tests

yeah well i i would have trouble

distinguishing which will be the the

tests in c but i think it should be the

uh-huh go ahead

uh it should be the last one

uh-huh and

logic i mean this is the correct answer

but that's the logic behind it

well if in any trading range there

should be like

three major tests so and we have no test

after the three so the last one has to

be the test in c yeah yeah and this is

again you know third test

is gonna be our phase c

second test it's gonna be phase b so if

this is the test this is from where the

trend should start

and even though there is

a definition of the higher highs higher

lows this is the conventional t

definition of the uptrend

you know you could argue with me that

we're already in an uptrend here yes we

are but we're still in the consolidate

information it's just upsloping

then if this is a consolidation and it's

just of slope information then we need

to identify phase c

so philip is talking about the test so

this is great looks like phase c

um how else could we check that this and

confirm that this is phase c well what

happens next

where is the actual uptrend that doesn't

have the same type of the reactions that

in the trading range it's in this area

right here so here is our kind of like

pure uptrend that we were looking for

so if this is an uptrend then the low

that precedes that uptrend it should be

phase c and it does yeah so that's great

another confirmation that we could have

is

uh after phase c i feel like what should

happen which phase

phase d phase d and phase d is going to

be associated with the major sign of

strength

and with the major backing up action

right so we could say that in this case

and i forgot who was asking me about

that uh backing up action that could it

be you know much larger well in this

case if we would extend the resistance

level you know we could see how this

formation is resting

um on the resistance level that has been

projected you know as an up sloping

resistance so yes this is a major

backing up action that has its own

trading range

now let's quickly talk about alternative

labeling

here you could label this as phase a and

then i've seen that some of you said

okay this is a test in phase b

and then this is it uh phase c phase b

is still the largest amount three so

that that actually is good then you have

a sign of strength in d

and a backing up action

now i actually oh i'm totally okay with

this label why because if you would be

thinking that this is an accumulation

and your goal is going to be to

establish a high probability trade which

is going to be a not in phase c but in

phase d

then you kind of open in the position at

the same time as the trader who would

label it as phase c

and it would try you know to

on the elements of strands just to get

in

in phase d on the way up so for trading

purposes it doesn't really matter

um but i want you guys to kind of

understand and see that we have to have

first test

second test third test that the trend is

going to start at the low so phase c and

so on so forth so there are quite a few

things here that i would be thinking

that this labeling is probably better

all right philly

what about the second trading range what

is the most obvious

thing on this console in this

consolidation

um

so the first two points

which defines the trading range probably

okay so i see it like as these two

points what is the first point

how would we label it

i'm buying climax okay why is this a

buying climax

well because it's the end of the uptrend

a

but i i like do not see

the yeah and it there is a gap between

the the last bullish uh take so maybe

that's that's one of indicators so gap

what else what about this spread

increase right

look at how the price marks prior to

that and look at this bar right here

something is different the way how it

moves now

so faster i'm much faster so my

management increase velocity increase

spread increase

gap to the upside and then it stops it's

a stopping action so all of these

elements are elements of the climactic

action in this case the bind climax okay

well what's interesting is the next

reaction right so

we see that there is really not a lot of

reaction that's number one secondly

there is really after the climactic run

there is no trading range

that would define

um

you know some kind of uh

causality for the price to move down and

that's why the move down is just so

small

this by the way is just a preliminary

supply

you know this range right here

and um it's in these cases where we

could say that because there is not a

lot of distributional activity here at

the bayan climax itself

we could label this move to the downside

as a shakeout first

or we could label it you know so this

will be more alternative labeling

and then a more conventional we built

just a regular automatic reaction

so whatever you guys did that's fine

the only thing here is if you're

labeling this as a shakeout selling

climax then the next rally is going to

be labeled hell fill it

uh automatic rela react function rally

okay and then secondary test and that

would

be your phase a

okay uh in the

alternative flip uh in the more

conventional labeling right so you'll

have

bind climax automatic um

a reaction and then the secondary test

and that would conclude your phase a and

that would be the only difference i want

you guys to see this we've studied this

in the previous class i gave you the

slides on the rear accumulation some of

the rear accumulations are going to have

the structure where they're going to

have a distribution range and we've seen

this in the previous slide then the

price goes down so you're going to have

a selling climax and then your labeling

is going to be the same

and then in another formation where you

have a buying climax and then you have

just a sharp reaction

that defines the boundary of the range

then you could in some instances say

that this is a shakeout and then you

kind of start it over

as just a regular uh

accumulation so this will be an

alternative labeling

and

buying climax automatic reaction

secondary test

this would be conventional

please take notes of this

because this question repeats itself all

right well phillip how would you like to

label it okay bind climax

then let's just go with the conventional

automatic

reaction secondary test phase a

okay so then what is the next thing that

catches your eye

um

yeah and now i'm not sure because if the

secondary test is is the test to the

upside i'm not sure what's the what's

the

uh you know decline to the uh

resistance but the support is your eye

instead of thinking what comes next and

the problem associated with the label in

there

what is the what is catching your eye

and by that i mean

are there any extremes or extreme

behaviors that you see in this trading

range that catches your eye

yeah the nice rally from the top to the

bottom of the support

okay let's come back to this later on

what else

uh

yeah and then this rally

i i thought the the you know the decline

from the secondary tests

secondary tests do the bottom of the

range

yeah this one

okay what about it

uh

there's that's the first thing and yeah

then the last

last

time that happened again

okay

um well when i asked you guys this

question what catches your eye obviously

i i'm i'm trying for you to identify

either extreme behavior or just extremes

right so what are the extremes

the extreme

kinds of support of strength the

extremes are going to be all this

right so these are the extremes

so um

like for instance this extreme right

here this rally off the low

what do you think this rally is

uh

i'm not

sure okay that's fine

so we we see

what happens after this rally we have

some kind of

backing up action and then a

continuation

um to the upside right so we are in the

uptrend environment right here so we are

leaving the trading range and then we

are going into the uptrend there is

another formation here but

what phase would we be doing this and

what kind of bike of events would you

know conclude the trading range in this

manner

it's probably spring

where

uh from the

uh yeah the beginning of the uptrend

uh give me a timestamp which is

september

okay so this one right here

yeah

okay yeah so at the low we probably have

a screen why is this a sprint by the way

because it's um

from the support level and it goes

right at the

like through the whole trading range and

with increasing speed okay but then

also a sprint is gonna be a lower low

right a sprint is going to be a

temporary

either attempt

or

commitment

below the support

that's how we would look at the spring

and that's the definition of sprint so

look at this guys how this bar is trying

to commit to the downside on the

intraday basis it does not commit only

has a tail here on the daily and then

returns quickly back into the trading

range

so it's an up thrust only reversed in

reverse

and then it has some kind of local test

here okay great so which phase is uh

gonna

have a sprint in it

uh

the beginning it's interface c

c absolutely okay so if this is phase c

then everything in between phase a and

phase c is phase b

we want to check that phase b is the

largest among the three

this is where the cause is being created

with this is where supply and demand are

interacting

with the very very volatile you know

events and behaviors

right so okay let's come back to phase b

really quickly the test at the support

level how would we label that in phase b

um

secondary test secondary test yeah and

then

the high that overcomes previous

resistance point in phase b

it's going to sign of strength

and up thrust

action

as

a minus sign of strength

and the reason why we're saying a minus

sign of strength is because the price

commits significantly to the upside it

doesn't just commits a little bit

it just commits quite significantly look

at three closes above and then the price

spends so much time above here before it

actually commits you know below

um so that's why a minus sign of

strength not every rally in phase b are

going to have characteristics of a minus

sign of strength this is going to be

more

of the um except

you know exception

rather than a norm

okay great so then can i'm gonna can i

just quickly ask you if if i have a

buying climax which is tested by the

secondary test the first one so the

secondary test is to the upside can i

also mark a secondary test something

that tests the support level like in the

different direction yeah and that was

kind of like my biggest um

uh issue is the labeling that i i've

seen

from the in the reaccumulation

where basically this sequence does not

make a lot of sense to me

now i would rather

uh sequence this in a different way i

would rather say buying climax

and then

shakeout type of action and then just

say automatic rally and then secondary

test

but sometimes it doesn't work like this

you know just there is not really enough

room for phase b

and then we could see that from the

behaviors what is this rally it is a

test it is a test of the climactic

action right there so

um i started in the conventional way i

started thinking that okay so test at

the resistance

test at the support and phase b is going

to be like that we also could label even

this up thrust right here as a secondary

test actually this whole up thrust

action in

phase b

uh has been added you know in this

course uh we've never used it before um

you know upthrust always

has been associated with three things

uh usually it has been associated with

the distribution

you know and hank kind of like you know

was always on me about this you know

like adding something new to the

methodology but it made sense to me to

do that

so authres was associated first with the

up thrust and phase b of the

distribution

and then up thrust after distribution in

phase c

it also was associated with the

upward

thrust

in the uptrend

and we would

use this as a momentum tool

uh where the momentum increases or

decreases on the rally

um

so when i realized that

this sub thrust right here has the same

type of

action as just the regular authorized

and distribution it made sense to label

this as an upthrust action

rather than an abstract itself i'm going

to have a slide on you

for you on this um i think david wise

gary fullert gary dayton i'm much better

with

identification of those up-thrust

actions everywhere

and sometimes when i listen to them or i

conduct sessions with them together

you know it just kind of amazes me how

they see this so there is a lot of value

in that type of work and that type of

knowledge and i would highly recommend

for those of you who are not familiar

with the names that i've pronounced you

know go check them out you know um i'm

actually extremely open to

uh cooperation with all of the wyck of

teachers you know for those of you guys

who are not new you guys know that i've

conducted so many classes with all three

of them you know and obviously i like to

teach with other with other teachers

with other people

all right so let's conclude this uh

really quick so after phase c the rally

up is going to be what

this um spring

uh with a spring spring is always going

to be a lower load to support it's not

going to be a rally and by the way i've

seen guys that some of you would put

like face c somewhere here or like a

part of the rally no face c

uh intention what is the intention

phillip

for phase c

uh

it establishes the new trend and change

the character

it's the final test

final test of supply

at the support level

that's what face c is all about

so it cannot be a rally

phase three is basically a test

phase c is not the rally so for those of

you who are kind of

mistakenly thinking that phase c could

be a part of the rally

uh no

phase c is the test and the test only

comes in the accumulation

as a reaction and not as a rally okay so

we concluded the screen what is the

rally that comes after the sprint in

phase d

maybe another up thrust action

i'm not i'm sure sorry

quick help here write it down guys what

is this rally

after phase c and phase d a sign of

strength that's correct

a major sign of strength okay and then

the reaction after that

is gonna be

a backing up action correct as well

so um

that would conclude phase d

but we have a much

bigger formation here so look at how

one

formation is on the top of another

so we are seeing here

a cell in climax as a stopping action

in their original range then we see

abind climax as a stopping action for

the re-accumulation

and then we are seeing another formation

which is reaccumulation as well and it

starts also with divine climax

but on the higher

magnitude level that was a major sign of

strength that we've just discussed

so this whole formation here is just

basically a major

backing up action

that starts with the

buying climax with the stop in action

and then what would be the first

reaction how would we label this phillip

automatic reaction okay the next rally

secondary test secondary test concludes

our phase a

okay

uh

look at the character with which this

rally and this reaction moves

how would we label those is this the

best rally

so far in this smaller trading range

yeah it is

so when would we experience the best

rally in the trading range that commits

above the resistance sustains that

progress stays above and then

comes exactly to the support level which

acted before

as a resistance

uh i'm i'm sorry i'm not sure what you

are asking oh okay so look at how the

spread here on israeli right increasing

yeah so it's much better than what we've

seen before here

and here

right so this is the best rally

in australian range

we know that the best rally in the

trading range probably is going to be

associated with the change of character

especially on the way out and the change

of character on the way out is going to

happen

in which phase d and phase d and phase d

is going to be associated with which

wackoff points

a sign of strength backing up action yes

those are the main players last point

last point of support and also sign of

strength bar

okay well we are not concerned about

this too

but we definitely want to identify

silent strength rally and the backing of

action so does it look like a sign of

strength rally

yes

absolutely yeah the character with which

the sign of strength rally occurs is

going to be

such where the spread to the upside is

increasing the volume signature is

increasing and by the definition of the

sign of strength we need a commitment

uh staying above and then backing up

exactly to the level of the support so

that's exactly what's happening

right there

so um this looks like a sign of strength

and a backing up action if this is a

sign of strength in backing up action

then the previous low is what

is the

test in c

excellent

c

then everything in between a and c is b

and then sign of strength rally and the

backing up action is our phase d

okay

and here it is here is our labeling for

all three trading ranges with the

changes of character

uh with

with all of this you know points that

we've discussed

um phillip okay so

uh

the main task right now for you

individually personally

is to remember the sequence of all of

the wyckof events that happen in the

trading page

so i want this is kind of like a very

individualized task for you right now so

i'll start with that and then go to the

homework next homework all right okay

thank you sounds great

all right good progress um so let me see

what kind of questions we have on this

slide

is there any difference between momentum

and velocity from limb um yeah there is

definitely a big difference between

momentum and velocity uh this is not

something that i want to go in right now

um

this is more of the advanced studies and

i would probably prefer to talk about

this in practicum

um but you know at the minion limb you

could just even

google definitions on the momentum and

velocity and doesn't matter that you

know you're going to get them from like

physics

but there is a difference there

um but we'll talk about this

in a slightly different context uh later

on uh it's just a big discussion there

okay

how can you tell the difference

of the first recumulation and the second

and what would be that different joel

you know what do you mean by the

difference

when you might be looking for a backing

up action okay

um

so

the i think that the biggest problem

here

with the backing up action is actually

a somewhat of a

not very distinct

sign of strength

because when we look at this area right

here and especially taking this tail we

might say that there is not really a

commitment to the upside here but

remember this already acts as a minus

sign of strength so if the price is

going to come to the same level

that's at the mean already a minus sign

of strength

but we have a much better commitment if

the highest commitment was here

then the highest commitment for the

second rally is higher you know it's it

just definitely shows

that there is a much

not much better commitment but a better

commitment to the upside

now the next problem

that we have here is the backing up

action itself

the backing up action actually looks

very normal there is no increased

spread to the downside that we see here

which is great that tells us that supply

is going lower

um it actually comes to the level of the

buying climax and then stops there and

acts as a spring comes back into the

trading range so everything looks normal

and i would be actually initiating my

position right on this bar right here

this would be my last point

my

next to last point of

entry here just based on this the first

one is going to be sprint itself

to reversal off the spring

uh sign of strength bar

and then you have to stop because of the

resistance

level and then the next one is going to

be so this is one two three

point number four right of the backing

up action so i would be already fully

committed into this position

based on you know how the price has

developed at this point of time and it

still would be profitable right so we're

profitable right away we are profitable

throughout this whole um formation now

what happens here is

um

here we are losing the momentum and that

suggests some kind of reaction the

reaction is actually somewhat healthy it

doesn't

prolong for a long time it doesn't have

a big distance to the downside the

spread does not increase significantly

but it's still somewhat different than

let's say

you know this action right here it has

some gaps to the downside actually two

of them um it has some kind of

volatility associated with this so that

requires another test so at this point

of time you know that there's going to

be a test of this area and you might

even just say if there's going to be a

test then

if i decide to enter somewhere here it's

going to be inefficient why it's going

to be an efficient well

just because

if the test requires time

then

it's going to take some time

so therefore we are waiting for the test

of the test and it comes on the next

reaction we see how different this

reaction from the previous one that's

going to be our

point of entry number five

and then from here

i mean i've talked to phillip and we

identified that the character of this

rally is different than anything before

in this range so therefore a sign of

strength and then the backing up action

is kind of shallow so again you could

add to the position here you could also

add on this bar so that's number five

that's number six number four

three

two one

and then after that you're gonna be

thinking that either this or this

is gonna be your

uh seven and eight so there are quite a

few points of entry and by the way for

those of you who are campaign investors

and we by the way we have quite a lot so

in this class so i will be pointing

those things out a lot you know um you

know campaign points of entry uh look at

this in the original accumulation you

want to enter on the

um because this is a higher low you know

this is your

these are your points of entry here

and then this one so this is going to be

uh

minus 4 minus 3

minus 2 minus 1.

so those are the points of entry that

you're going to have in each of the

trading ranges and please note

for the long-term investor

we are companion

from one trading range to another

our goal is to

um

establish the position at the correct

timing with the correct bias so here is

our regional positions that we are

opening and then open them at the higher

prices price level

at the point where phase c is happening

and nothing else

and then

in the next formation we're doing the

same phase c and then all of the other

entries in phase d

so every time you scale in and you

increase your position size

you are doing this at the higher level

and you're doing this in such way that

defines the timing of when the price

leaves the trillion range

i mean obviously maybe with an exception

of this

point of entry

the goal for the long-term investor and

the way how i view my long-term

campaigns

is to be in the correct stock that is

going to

uh have a very

prolonged cyclical move to the upside

where i could hold on to this position

beyond one gear that's number one that's

number one goal the my second goal is to

stay in this position until it's done

until this

cyclical run is done so we have to have

a significant change of character to

define the ending of the campaign there

are certain characteristics to the

ending of the campaign that you know we

would be

we would be thinking about

um

and also

when i'm in the correct position

for the law as a long-term campaign

position

i want to be aggressive

with my next points of entries because

the trend is defined

and now i just know that it's all up to

me to define the correct timing

uh on the next step in stone

pre-accumulation range

and to define the correct entry

and to scale in more to create a

substantial position so when it comes to

the conclusion on the climactic run

which is going to be the terminal

climactic run

i have a lot of money there built in as

an unrealized game and i'm going to take

the profits at that point of time or

scale out

so

when you're right

be a peak

don't be scared

and i'm you know i'm saying be a pig

obviously i'm referring to

uh george soros and specifically his

trade in 1991 92 when he shorted british

pound

so i was reading about this trade and

you can get his book and he talks about

this trade

he exposed

uh his fund to four percent of risk on

this trade

so and you know working with

institutions all clients you know i must

say that four percent

you know for them could be a substantial

risk

but george soros

is not a very necessarily kind of like

your typical institutional type

here's what i call

a and this is very close to me because i

trade the same way

more of the concentrated

portfolio investor whenever he sees

opportunity and it works in his favor he

could add to the position and go beyond

your regular uh risk parameters and

that's what i'm suggesting here

uh you know if you're at the advanced

level and you feel comfortable

with all of these concepts and with

trading in general you could be

aggressive with at specific spots with

the specific stocks

with the specific patterns

this is a pattern right here that could

have that type of aggression for us

that we could call

all right great we'll talk more about

this later

as you guys could see there are quite a

few

you know uh things that are still ahead

okay are several reaccumulation close to

each other sign of very strong bullish

move yet to come all of these

re-accumulations i'm always tax uh

stacked on top of each other with bias

um towards upside from um

knowledge a nilish okay so i might be

misinterpreting the name again

um mispronouncing

there is a logic in what is being said

here

but

it's slightly different as to how i

would explain this our first

accumulation range

is not necessarily a part of deformation

that comes later on but it has a very

logical

you know continuation kind of

of why we have so many trading ranges

after the original accumulation so think

about the original accumulation

what is happening here

why is this accumulation why is this

range has this type of structure

where we are seeing higher highs and

higher lows

what do you guys think

what does this represent

and what kind of behavior by

institutions

could be

observed through this type of structure

okay now that's just saying

urgency to buy

lots of value co establishing a position

from joe yes all three are correct and i

would concentrate on the first two

because it's an extreme

oversold condition

that creates extreme

value proposition for institutions and

this extreme value proposition both long

term and short term

that's created that's what creates that

urgent buy

which we've seen a lot by the way lately

with the way how the market has been

behaving and in some of the cases you

know you see a lot of oversold you know

conditions

and from that oversold condition i mean

like you you take a stock like apple

uh or um you know other leadership type

of stocks and then they decline so much

in such a short period of time but they

still within the

secular structure of their campaign

so how do you think institutions are

going to look at this think about their

fundamental macro perspective if a macro

money manager thinks that um the markets

are still

they are short

vulnerable and weak but they present

opportunity within the secular

uptrend structure then he he or she is

going to come in and just buy whatever

this election is available to them based

on the parameters of their system

and that's going to be their call the

fundamental money managers are going to

do the same they're going to see some

value in the stock like apple

um

you know and they could say that i'm

just based on the fundamentals i see the

value so i'm going to come in and buy so

this extreme oversold extreme value

proposition here creates urgency to buy

you know at the lows and throughout all

of the rallies and that's why you know

this urgent uh buying creates this type

of structure

so then think about what happens next

let's say that the co

bought

the position that they needed

at this point of time

because supply drastically went down

the price goes up at this point

and i would even argue that this moved

to the upside and you could go and find

this chart but this is my assumption

here just looking at how the price moves

and looking at that co has established

this position

co is inactive

on this rally

and i doubt that you know uh

institutional trend follower following

hands you know also are extremely active

they might be active more at the

beginning of the rally but then

everything else is kind of diminishes uh

as we see momentum going down the spread

decreasing

more laborious move to the upside so

we're probably seeing that demand is

going down and then the volume signature

in general is going to be lower than in

this area right here

so as they are in the position and they

have some profit what do they do well

they might come in on some points of the

volatility and you know add to the

position but it's not necessarily going

to be a very extreme

you know big position that they're going

to establish i would see even more that

maybe on the rally like this we're going

to see a lot of increase of the demand

signature and that's going to be some

kind of value

or

trend following type of institution

that's going to create this type of the

position and they're just going to say

wow

this has confirmed the trend

so i'm and then there is some short-term

value

that i see here so i'm going to come in

and buy but the way how they're buying

they're not buying just one day

they could be buying multiple days

multiple weeks so that's what creates

this rally

so this is just a buying wave in the

middle of the trading range by some of

the institutions because again

short-term value and long-term value

still and long-term buys

and then

imagine that

co got in right here

and then value a proposition for some of

the institutions at these two spots

maybe somewhere here

then the rest of this move is just gonna

have this signature where

we're gonna

still see some

um

consistent signature

of the decline right so something like

this and then

decline decline

decline so you're going to have some

pockets of

volume increase throughout this whole

slide here but

generally

your highest volume signature is going

to be here

this is the area where

um out of the oversold condition there

was so much bind by institutions and

then it's just going to go down

and it's going to go down like this

and then just different pockets where

locally volume signature is going to

increase so co bot here

and then co is inactive

and that's unfortunately not exactly how

we were taught we were taught that co is

operating in each of the trading ranges

and this is not true

once they establish the position you

know and they just go to other stocks

and it's there with positions there they

might add on the way up but not

necessarily it's going to be more a

function of other institutions seeing

you know establishment of the trend some

short-term value

and then definitely you know just going

through this whole thing

all right

sounds good um what else

why are you calling the event last point

of support in phase c instead of this

spring right here um so this is a high

low so definitely going to be a

last point of support

you could call this an attempt to spring

but look at this bar right here so uh

comes down comes below the support so

it's still a high low so that's why

we could also be calling a sprint

something that would go below

more of the local support so maybe

something like this then we could say

that this is a spring relative to this

law and still a higher low or less point

of support relative to this law

okay good question

all right so let's see where we are so

we have like what 20 minutes or so

all right so let's talk about

identification of phase c

um how do we identify facey we kind of

went through this

and and this is just the shortcuts that

again i've created for

for myself and for my students

this is not necessarily in the

methodology and that's why you know

students started calling these romanisms

so i'm okay with this and kind of like

when i say that this is the romanism so

you instantly should be thinking

um you know not in the method something

that you know kind of like

more proprietary to this course and but

still it's going to be based on the

ideas of like of ideas so i've talked

about three tests

at the support level right so the first

test is going to be a local test of the

climactic action second test in phase b

of the loss of the selling climax and

the secondary test so in phase b we're

basically testing the previous tests

in phase c at the support level this is

the last test the final

test of the supply

at that support level and then our test

number four is going to be a backing up

action

and it kind of is logical to me

that

the initial tests are going to be at the

support level and then the last test is

going to be at the next value zone

so

they've observed the supply at the lows

that pushes the price up into the

new highs in this case not necessarily

new highs but new highs relative to the

highs in phases a and b so kind of like

in the same zone as it comes back to

this area we are going to experience

some kind of mean reversion trade by

professionals

that's going to bring us to the

increased supply signature

change of character of the backing up

action

and therefore we're going to have some

kind of tests there

so a test

is the test

number four at this level that we would

say that it's going to be a backup

action in phase d

and it's being confirmed it confirms the

change of character the conclusion of

the formation of the change of character

and then once the resumption of this

test happens

then we're going to continue with the

uptrend

another identification of phase c

that is very valuable to us is the

second point of fear

so

points of fear are all going to be

discussed within the context of the

sentiment now our first

sentiment uh bearish sentiment that we

could find is going to end therefore the

first point of fear is going to be in

phase a it's going to be associated with

the cell and climax why is this point of

fear develops this way well i think i've

mentioned this many times

you know we are experiencing a

capitulation

by weak

hands and in this instance

it's more of a terminal capitulation

and therefore

i sometimes call it a general

capitulation that would have both

institutions and public behind this

capitulation

and what is the capitulation it's just

basically panic

people at this point of time

are experiencing a lot of emotional pain

because of the losses

and they can't withstand this pain

anymore and they're giving up on their

positions and they're saying get me out

at any point of

price time but just get me out i cannot

bear this anymore so therefore this type

of activity is going to be associated

with a lot of selling

and a lot of selling is going to produce

technical characteristics as

increasing the momentum increasing the

velocity

increasing the down spread

increasing the distance to the downside

that we see increasing the volume

signature and specifically increasing

the supply signature by weekends

and increase

of the demand signature

by strong hands

so first point of fear

the second point of fear is not

necessarily going to be in phase b

it

could be in phase c

why is that well think about the

sentiment of weak hands they just sold

here and then the price went up what do

you think they feel at this point

this is definitely a regret that they

have

so what are they gonna do

they're gonna buy

if they're regretful

that they didn't buy and they didn't

hold on to this and the price went up

like this

they're gonna buy here and they're gonna

buy here and they're gonna buy somewhere

here

now as the price goes down in phase b

into another test

what do you think they're gonna do now

they probably gonna say well i gave up

my position on the selling climax and

that was a mistake

so this time i'm gonna hold on

to this position

have you guys done this

well i definitely have done this before

so

i'm just happy i'm i'm not doing this

anymore but that was the sentiment you

know that's how

you know we trade when we are amateurs

we trade on

our behaviors on our emotions

we cannot control those yet

so they are holding on to this position

and when the price goes down they're

still saying it will go up

and as it goes up what do they feel

they feel happiness right so they feel

happy because the price goes by and

they're saying that was a good uh

decision to buy here hold on to the

stock and now the price is back almost

into the same area

they feel happy so they're holding on to

the position and they might be even

adding to the position

uh maybe somewhere at this spot right

here

so imagine what happens next when the

price gets down and has some kind of

you know or goes down just a little bit

what do you think they're gonna

experience that

i mean they've been

through this

ups and downs emotional ups and downs

up to the uh phase c point

and they are so exhausted

they are extremely exhausted emotionally

and they're just saying at this point

when the price goes down into phase c

low

they're saying like get me out

and this time they make a promise

what is that promise by the way guys

could you think of one

well that's promise is to never

trade this stock again

or at least for the time being

it's an emotional withdrawal from

emotional

pain that is based on just inexperience

no knowledge no skill

um and unfortunately you know that's how

we can say you know

you know that's their pattern that's

their cycle

they will go to the next talk and they

will experience the same things over and

over it could be a different contextual

interpretation of the sentiment of how

it happens but basically

on the very primal level of how we

experience emotions it's going to be the

same so that's why

this is going to be the second time

where they're going to

weak hands are going to capitulate

now this is going to be a less of

capitulation

just because

and it's going to be more public

capitulation then institutional why

because institutional

weak hands they are much better learners

they are much

more adaptive because if they don't

adopt quicker they're going to lose

their job they're going to lose their

salaries

money management is based on the

performance matrix

so if you don't perform you don't get

the money you don't get the salary you

don't have a job

so it's much stricter there than with

the public so therefore the institutions

hopefully learn much faster at least of

what i see you know working with them

and working with the with the public

retail uh traders so therefore the

second point of fear is going to be more

associated with public than with

institutions and if that's the case

usually the volume signature on this is

going to increase locally

off phase b

but it's going to decrease

relative

to phase a law relative to selling

climax where we have both institutions

and public capitulating at the same time

that's a very small nuance but it's a

very very big point

because if you could see this logic

through the chart

and you could understand that with the

public capitulation here going into

phase c

and we're seeing that on the technical

picture the price goes down but then

quickly comes back

you might be thinking this is the last

time when public capitulates

and where institutions the last time at

the support level are actually buying a

meaningful position

and they add them to the position that

they already have

therefore

this last

public supply

is observed

at this level and therefore what's going

to happen after that there is only one

thing the price will go up as supply

has been observed at the support level

those last pieces

on lost public capitulation into phase c

that absorption

leads to the rise

to the sign of strength

and then this is where i mean reversion

traits happen

so

it's kind of funny you know at some

point when you understand you know the

mechanics of it as to

what happens next with weekends they

said never never never will i get into

this position again into the stock and

they are missing this whole rally right

here and once it overcomes and it

becomes a cnbc item

and everybody's screaming it's in the

uptrend

they're saying i gotta go in

so they're establishing the position

right here again and they're saying i

said that i'm not going to go in into

this position but this is the time now

and then the first time the price goes

down into the backing up action

they are so already conditioned

uh

on all of these reactions and all of

this

you know attempts to go up and failure

attempts to go up on failure

attempt to go up and then the beginning

of the failure in their rise what do you

think they're going to do here

they're going to sell their positions

again with the loss

and they're going to say well now for

sure

i'm not going to go in into this

position i should write just you know a

book for kids about this you know just

explain to them and such simplistic

terms you know how their psychology

uh you know unfolds

so they're like uh i'm selling with the

laws

and now i'm not gonna go in into this

position

and they're missing the whole trip

so now imagine if this is a distribution

somewhere here really quickly and then

we'll stop maybe here

if this is a distribution

they

you know on the way up they're like what

did i do why did i close this position

and then as they go into the next

consolidation which is the distribution

and they see in a change of character

so they're seeing what they see in

reaction

which creates value

for them short-term value and i'm

talking about weak hands

that this case not just public but

institutions as well

so and they are saying like i gotta go

in and buy

so they are buying here on the secondary

test they feel great on the next

reaction to the downside they are saying

i made this stupid mistake here at the

original accumulation to get out of the

position and every time it was going up

after i get out so i'm gonna hold on to

this

okay well

holding on

and what happens in the distribution

obviously not what happened with apple

at this time but i'm just giving you an

example here

all right so they accumulate they

accumulate the price goes up into the up

thrust

this becomes a second point of

excitement for them

the first one was on the buying climax

this is where they will be you know

buyers as well

and they are saying like this time i'm

just going to hold on to this as the

price goes down into this excitement

with them adding to the position

institutions are going to sell

sell

sell on the change of character sell in

phase b

sell on the way down and then capitulate

on the way down and throughout this

whole formation weak hands are going to

hold on and they're going to capitulate

relative to the emotional

pain that they have that they can

withstand

and to the knowledge and skill that they

have

so some of them are going to capitulate

somewhere here and usually this area is

going to be associated with the largest

volume signature and some of them are

going to capitulate maybe somewhere here

so depending on you know the system for

institutions and depending on the

emotional pain

for the public

doug is saying been there

done that

great description

yes we all have done that

we all have experienced that pain this

is the reason why you are in this class

or you know going through your emails

reading those you know in reading

who you are as traders right now and who

you've been as traders and your

inspirations

you know the majority of students in

this class

are here for the right reason

you guys are trying to figure out

how to make money in the market

by having the knowledge developing the

skill developing the system and being

able to control your own behaviors in a

different way than how you've done

before or what you're doing right now

and i'm just showing you how you could

interpret the chart in such way

that would be systematic

logical

and that would elevate your emotional

pain because you will know

at which point you need to act you will

know at which points you need to get in

to get out to add to scale out

it's just going to take some time

but it's going to be

valuable

and that's kind of like the message to

all of your emails that i've seen today

from you guys

all right i think this is a good point

for us to stop

right so it's almost six

and uh

let's go through the

homework i'm still gonna give you the

homework so let me just do this

okay you should not be able to see

anything

and uh

okay

now you should be able to see the

homework slide

okay so what do we do next uh well first

of all i would like you to continue with

um

you know if you have a lot of time and

there are

some of you who told me i'm here to gain

as much knowledge from you as possible

i'm gonna do anything

you know to gain that skill

um i'm passionate about this i have time

for this so for those of you who are

like that so your task is

so i'm going to put this as an optional

task

your task is to watch this session again

your second task make notes

send those to me

your third task

is going to be

go through

um

homework again

the one that we've covered

and kind of go through your chart

and then my labeling

and compare and ask yourself one

question

why

why did he label it like this

so this type of questioning will bring

more questions

and that we could answer later on

but what it does is it makes you think

one of the things that i'm also noticing

and i'm not saying this about this group

in particular or anybody in particular

but

we as people tend to lack thinking

you know we kind of sometimes

think that we know everything

that's not the case i mean like i've

been teaching this material for quite

some time you know and even some people

that say yeah i've taken class and from

this and this i've read these books i've

read these articles i know the

methodology they come to this class and

they feel

how much

they don't know

and that's just because the market is

much more

than anything that we've started you

know in our lifetime you know it's just

such a complex pattern it's such a

complex you know algorithm and system

that we're playing with so um

you you have to always

be

you know educating yourself and the past

education i think you know going through

this course is always

asking the question of why

why is this happening

so that's an extremely important

question so this is for those of you who

have time

and who want you know uh more of the

more assignments

right but then for everyone else a very

regular assignment is just going to be

this the same assignment that we've done

with home depot but on the distribution

so i'm going to give you the slides with

the distributional patterns you know

that this is a distribution and then you

just have to label those

now i'm also going to give you some

slides on the distribution and like of

phases and the events and the changes of

character in the distribution pattern

itself so you will have to kind of like

go through those slides read those read

characteristics and so on so forth

but that's the only homework that i want

you to do watching the recording again

is optional i totally understand when

somebody emails me and says

well i've got a nine to five job it's

very demanding and then i have a family

guys

i totally hear you and

to those of you who are in this

situation go at your own pace

you know you don't have to put so much

pressure on yourself right away

but just listen to the recordings that

could be one thing to do then if you

have time do the homework send it to me

then if you have more time

well then rewatch the recording but if

you can't rewatch the recording don't

worry

just go through the course this one time

you will have the recordings after the

the course

go through the course again

by yourself

or you can sign up for the course again

at the alumni rate

and then go through the live sessions

again with me a lot of people actually a

lot of alumni in this class right now

just because again so much material

three hours today and i gave you so much

i probably have given you over 100

concept concepts you know those small

details that you have to go through so

it just takes time so it's all

understandable so let's look at the

slides for this homework

here's one

callaway golf

netflix

apple

nasdaq

uh alexian pharmaceutical

and yahoo

so yahoo is going to be your

uh probably alexian pharmaceutical and

yahoo are gonna be the two hardest

charts everything else should be

quite easy if you follow the schematics

and then i'm gonna give you

this material but we will go through

this material hopefully next time but

this is something that you should be

studying before you do the homework so

um the like of events the phases

characteristics of those events

something again that i want you to go

through to remember

and different you know

schematics on how distribution could

unfold again this is something that we

will be covering in the next class

all right guys well that's it for today

good session i would be expecting that

the next session is going to be as

intense as this one

so bill please be prepared that we're

going to go to the third hour

uh to the end of the third hour and

we're going to finish first the homework

on home depot it's still very crucial

for us to go through that and then

hopefully next class but if not then the

class after that we're going to go

through the homework on the distribution

and after that once we conclude our

structural analysis that's when we're

gonna switch to supply and demand

all right i'm gonna be expecting your

emails with your homeworks um good job

everybody you know with the homework i

really liked it good job today with all

of the volunteers and

uh you guys have been writing a lot so i

see a lot of comments

so this is great this is exactly the way

how i want to conduct this class this is

exactly the type of interactivity that i

want to have with you with that

happy trading for this week i'll see you

next monday thank you guys and bye