Technical analysis Post 3# Market phases.
What is a market phase and how to operate it?
Market phases are the ways in which the market moves, having bullishness, bearishness, range accumulation and manipulation.
The bullish one is made up of an ABC with a and c being the impulses and b the retracement, making higher highs and higher lows. As long as it maintains its structure it will remain bullish.
The bearish is also made up of an ABC with a and c being the impulses and b the recoil, making lower lows and lower highs. As long as it maintains its structure it will remain bearish.
When we see an exhaustion of these two phases, "movements with less momentum" is when we can enter a lateral or accumulation range.
The Accumulation Range is formed when the price keeps moving sideways and does not make its trend clear. Now the range can be accumulation or exhaustion
An accumulation range occurs after a strong movement, this is characterized by continuing with its previous trend after accumulating positions. a clear example is #LINK in daily
An exhaustion range occurs after the trend has already worn out or a very developed trend such as the one that #BTC currently has in h4 is characterized by changing the trend after its accumulation
Finally we have market manipulations, these can occur in any trend and are generated by the expectation and greed of the players.
Although all phases of the market are operable, it is recommended to operate in the following way
Bullish: following the trend using Fibonacci
Bass guitarist; following the trend using Fibonacci
Range: bottom up and top down
Manipulation: doing price action and seeing if the price wants to return to its phase.
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