Occurs after a long decline. Prices move sideways with low volatility as "smart money" builds positions.
Used to identify the primary trend and major support or resistance zones.
Used to check for momentum and swing trends within the larger move. Occurs after a long decline
The most profitable phase characterized by higher highs and higher lows. This is where long positions are favored.
Technical Analysis Using Multiple Timeframes ... - Amazon.com Used to check for momentum and swing trends
A sustained downtrend with lower highs and lower lows. Short positions are prioritized here. 2. The Multi-Timeframe Strategy
Shannon argues that every market moves through four distinct phases. Recognizing which stage a stock is in helps a trader decide whether to be aggressive, defensive, or sidelined. Technical Analysis Using Multiple Timeframes
After a big run-up, the price moves sideways again as large players sell to latecomers.