General
- Distributions / Accumulations are often used to create pullbacks;
- Distributions / Accumulations are marked on from the lowest to the highest wick
- Chunk is from the lowest closure in accumulation
Mark-up horizontal distributions from the lowest closure to the highest closure and use the low as the target.
When a range is at a s/r level, wait for the range to be tested, not the s/r level, because ranges are usually stronger. Also pay close attention to minor ranges. In the case below there're two small ranges:
Do not go against pullbacks that came from accumulations, because often it will create a deeper pullback:
Good example of a distribution retest trade:
When a range breaks out with a Bobbi, but the Bobbi do not get passed the mid-level, it can be a retest candle and this makes it a fake bobbi.
When there is a very strong distribution above and after this a range is taking place, big chances are that the distribution will get a retest, so the range most likely will become accumulation.
Be careful when price makes a bullish pullback into distribution. The distribution probably won't hold then. Here a strong v-rejection followed by bullish structure is moving into distribution:
Another example of liquidity void with distribution above. It is likely that the void is getting filled and the distribution getting retested:
Example of a accumulation that gets a retest later on
Here the distribution was hit two times with equal highs, telling us we will head lower now:
When distribution has a liquidity grab before the push down, wait for a retest of that candle or wick. Be patient. The yellow box marks the distribution. The yellow box got wicked before the push down and it is this candle that gets the retest.
When a range happens at the top, these highs are weak. It is a sign that it wants to continue the trend
Ranges at a LL point are weak. Do not use then to go long:
Do not be afraid to long into distributions in an uptrend that has equal highs:
Collection of a range. The first blue arrow points to the bearish candle which is collecting the orders so the market can transfer to the next fase (2nd red arrow).
When accumulations are held during a pullback, this is a bullish sign. Do not trade against it. The red boxes are all accumulations that got rejected.
This distr on a HH was too minor to be considered a 1H distribution. It is a very weak one. It was only used two times to create a small pullback. After this, the distribution has no liquidity left and will most likely break for a new HH:
When a distribution consists of multiple big bodied candles, use the lowest closure as the target:
Range and chunk mark-up:
When a distribution (red) happens on a level after it took liquidity (yellow), it wants to go lower:
