Phase A.
stopping the previous bearish trend.
PS- its the fist attempt to stop the downward movement that always fail.
SC- climax action that stops the downward movement.
AR- bullish reaction. an up-ward movement that sets the trading range high.
ST- test of the level of supply in relation to climax action. establishes the end of phase A and beginning of phase B.
this produces the chage in character with which it makes the price evolve from a downward trend environment ta a lateralisation environment.
also we saw the sign of strength and
Phase B
construction of the cause.(TEST)
UA- temporary breakout of the resistance and re-entry into the range. this is a test at the high generated by the AR.
ST as SOW- secondary test as sign of weakness in test function. temporary break of the support and re-entry to the range.
CHoCH- change of character. it indicate the inverinment in which the price will move soon, commonly happen in phase a and c but this happen in phase B, it wold be a kind of test that denotes greater strength.
This type of test allows us to evaluate the strength and weakness of buyers and sellers . occasionally , test will be performed at both the top and bottom ends of the structure.
Phase C (possible)
TEST.
at this current level, potential shakeout.
i call it.
SECONDARY TEST ON THE UPPER END.
the price passes through the previous high created in the stop action but does not move too far away before re-entering the range leaving a slight shake. is it a movement that denotes background strength as the price has been able to penetrate the resistance zone of the range ; and this could not happen if there were no aggressive buyers present.
****
currently price is able to closed above VWAP 0.417 with volume breakout, that indicate a stopping move.
real strength only if price able to be above 0.435-0.4 retest a stay above it.
key level;
resistance 0.51
support 0.405 / 0.4
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