With this in mind, we can attribute that a Secondary Test would be seen with a neutral connotation when identifying which side (buyers and sellers) have more control of the market. So, it would be a good way to identify a certain imbalance on the part of buyers if the Secondary Test we see is performed over the upper half of the range; and it would likewise identify a certain imbalance in favor of sellers if the Secondary Test ends slightly below the Selling Climax. This characteristic, together with the rest of the elements that have been commented on, as well as those that will follow, is an indication to take into account when assessing whether we are dealing with accumulation or distributive structure. It is a question of putting the greater probability on our side and therefore, the more of these signs in favor of a direction, the greater strength our analysis will have.
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The really important thing to look at is, in order of importance: the decrease in volume and the narrowing of the ranges. As we know, volume reflects activity and therefore, low activity after a climatic event denotes a lack of interest in that side. T S T P B Although the "official" Secondary Test is the one that appears in Phase A, it is a type of behavior that we will continue to observe in different Phases of the development of the structure. Once Phase B has begun, we are going to be awaiting any
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This type of test allows us to evaluate the strength and weakness of buyers and sellers. Occasionally, tests will even be performed at both the top and bottom ends of the structure. Depending on the subsequent effect of the range (whether it is accumulation or distribution), the tab pages are differentiated for the same actions. As it is logical, until the price does not leave the range we cannot know what was the real intention behind the cause that was being constructed and therefore, in real time any labeling should be valid. Beyond seeing the market in a conventional way, we will also think in terms of functionality and differentiate price behaviors from two points of view: as a concept (action) and as an event (depending on the location). S T The price passes through the previous high created in the stop action but does not move too far away before re-entering the range, leaving a slight Shake.
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Initially it is a movement that denotes background strength as the price has been able to penetrate the resistance zone of the range; and this could not happen if there were no aggressive buyers present. A subsequent evaluation will confirm whether it is really a strength (bought, in which stock has been absorbed accumulated) with the intention of increasing; or whether it is a share on which it has been distributed (sold) with the aim of bringing the price down.
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