David Weis - Trades About to Happen

Fantastic Trading Book that

FUSE the Best Concepts of
the Wyckoff Methodology with the
Best Analysis Techniques of
Price and the Volume

Where to find operations

Findtrading operationsIt's like fishing. Fishing can
happen randomly anywhere in the lake, but tends to
gather in specific areas at different times.

Similarly, large operations can be found on

any point on the graph, but they appear more frequently
around the limits of the ranges.

The ranges have a rectangular shape with the price fluctuating in its
interior between the upper and lower limits.

Example of context where to search for operations

The ranges sometimes expand their limits and contain numerous
smaller ranks.

The range limits are repeatedly tested according to buyers and

sellers fight for control. When the limits are
achieved, the continuity or lack of continuity becomes a
decisive factor.

After the break, the price will sometimes retest those areas.

The first step involves drawing the ranges; and this is done through
the drawing of lines.

Through the repeated delimitation of support and resistance lines,

we see how trends consist of a set of ranges
individuals.

The continuous development of ranges forms the trends.

Market shifts originate through movements of the

price (Springs, Upthrusts, Absorption, breakout test) that serve us
as action signals.

Draw lines
Horizontal lines

Resistance lines are drawn from the price highs;

while the support lines do so from the lows.

Every time the price reaches those levels, it informs us of the

battle that buyers and sellers are carrying out for
to take control, which repeatedly causes false
breaking movements.

Lines by themselves do not reveal strength or weakness; nor do they offer

buy or sell signals. They simply display a level that has
served at the price as support or resistance.

What makes the lines significant is the relationship between the price and
the volume around them.

By drawing support and resistance lines, the trader can

anticipate price turns around them.

Trend lines

Trend lines represent the angle of the rise or fall. They are
dynamic support and resistance lines.
In a bearish trend, the trendline is drawn through
the decreasing maxima. This line is called the supply line already about
she will appear at the sale. Generally, the first point about which it
The anchor line is the highest point of a bullish movement.

In a bullish trend, the trend line is drawn through

the increasing minima. This line is called the demand line since
mark the point where the purchase will appear. Generally, the first
point on which the line is anchored is the lowest point of a
bearish movement.

Touch points add validity to the trend line.

Automatically enter after the penetration of a line of

trend carries risks as the price can quickly
reverse and continue in the direction of the trend.

The behavior prior to the breaking, the way it happens and

the continuity or lack thereof of movement suggests the greater
probability.

Channels

The combination of demand and supply lines creates channels of

trend.
In an uptrend, the demand line is drawn by
connection of two minima; while a parallel line creates the line
of the offer, which is anchored to the maximum that remains between those two minimums.

A bullish movement above the ceiling of the bullish channel is sometimes

a sign of overbought.

In a downtrend, the supply line is drawn by the

connection of two maxima; while the demand line is anchored to
minimum that remains between those two maxima.

A bearish movement below the channel is sometimes a signal of

overselling.

The ideal channel will have multiple touchpoints and should capture the
majority of the price within its limits. We have to be flexible
when placing our lines; we cannot force the
placement.

RE
R

Inverse trend lines and Channels of

inverse trends

They are usually drawn with dotted lines to differentiate them from the
trend lines/channels.
Some trends, due to their angle, will not fit in the channels.
normal ones already commented and the lines will have to be drawn from
inverse form.

An upward trend will require drawing a reverse trend line.

connecting the two maxima and dragging a line parallel to the minimum that
there is between both.

A bearish trend will require drawing a reverse trend line.

connecting the two minimums and dragging a line parallel to the maximum that
there is between both.

An excess of the price above or below the inverse lines to

sometimes will mark the end of the movement and will guide a reversal of the
trend.

Convergent lines

Many times, a normal trend line will combine with a

inverse trend line to form converging lines.
In an upward trend, the trendline will be drawn by connecting
the two minima and a reverse trend line connecting the two
maximums.

In a downtrend, the trendline will be drawn by connecting

the two highs and a reverse trend line connecting the two
minimums.

Some technical analysts refer to them as wedges.

The converging lines indicate a loss of momentum.

this type of behavior is known as 'Shortening of the Thrust'
(SOT), which we could literally translate into Spanish as
shortening of the thrust

The history of lines

The lines define the angle of a trend, alerting us about when
the market has reached an overbought or oversold point within
from the trend, they delimit the ranges, representing levels from which
a reversal begins in search of balance and helps to foresee levels of
support and resistance levels to expect the price.

When a line serves at the same time as support and as

resistance is known as the axis line. Prices tend to turn
around those axis lines.
Those price levels constantly change roles; a resistance
broken becomes a support, and a broken support becomes a
resistance.

A convergence of lines should alert us to a possible point of

turn in the price.

An important type of figure is known as a continuation pattern.

It is a narrowing of the price between two trend lines.

convergent.

This price pattern has little or no predictive value. Simply

indicates a narrowing in price towards a point of equilibrium between
the forces of supply and demand. Since this equilibrium cannot
Lasting indefinitely, it will eventually break to one side.

The behavior of price and volume can give us clues about

of the future direction the price will take.

The logic in reading graphs of

bars
When studying a bar graph, we carry out a process of
sequential evaluation through which we compare the movement of
immediate price with the most recent price bars. From this
comparison we draw deductions about what we expect to happen
below.
 For the following example, let's assume that each bar represents a
day and that we are in a downtrend. Analyzing the first and the
the second bar we will draw deductions on what we expect that
it happens in the third.

Bar #1

The size of the first bar reflects ease of downward movement and
describe what a large bar is. Since the closure is in the middle of
we assume that buying has appeared at the lower levels.
The range of the second bar is narrow, so it does not reflect ease.
in the downtrend. The low of this second bar is only
slightly below the first and because it finally closes at
middle of the range, indicates that buyers were present in
those lower levels.
During the two days, the price closed in the middle of the range and the trend
The bassist found resistance. The market is showing an inability.
to move further down. Therefore, we could expect an attempt to
increase on the following day. If this increase breaks the ceiling of the second day
but it reverts below this second day, we would expect greater
weakness.

Bar #2

In the first bar, there is an ease in the downward movement and the close.
at the minimum of the range reflects a total victory for the
sellers.
The narrow range of the second day is harder to interpret; as
It may seem that the sellers have been unable to produce a
greater journey, or that the buyers have absorbed all the sale and of
there the price brake; but the closing position gives us a hint; already
that the close is below the lows and below the first bar,
we assume that sellers are still in control. If the closure
 if it had been at the maximum of the range, the result would have been in favor of
the bulls.
Given the closing position of the second bar, we expect more.
Weakness in the following bar. If there is little or no bearish continuity.
in the third bar and the prices rise above the maximum of the
Secondly, it is likely that there will be more increases.

Bar #3

The first bar personifies weakness; ease in movement.

bearish and closing near the minimum of the range.
The second bar occurs with a gap below the first one, but the range
It is narrow. The close is near the lows and below the
previous bar.
Although there is no observed ease of downward movement in the second
bar, all the trading took place below the first, so the
the price showed its inability to rise. Furthermore, the close was at lows.
suggests that sellers continue to be in control so what is expected
lower prices. This configuration is more bearish than #1 and #2.

Bar #4

The first bar has a narrow range but the close is near
minimums of the range, so the sellers seem to have been in
control at the end of the bar.
In the second bar, the price falls below the first one but
finally reverses and closes above.
The reversal action tells us that there was no more selling interest for
below the previous bar. This lack of selling pressure creates an effect
empty and the buyers intervened. Much of this purchase may be
it has been short coverage. The strong close above the bar
previous suggests that at least temporarily a support has formed;
so we would expect bullish continuity in the next bar. A
reversal and closure below the second bar would be an indication
very bearish. The minimum of the second bar can be used as a point
Stop any new buy position.

Bar #5

There is an ease of movement in the first bar and the closing is near.
from the minimum of the range.
The second bar causes the failed break of the maximum of the first.
closes near lows.
The closing of both bars is almost the same and this reflects weakness and
inability to maintain a rise.
Since the failed break of the second bar erased all the gains
what had been achieved, we would expect greater weakness on the next one
bar.

Bar #6

Although there is a bearish movement ease on the first bar, the

the closing position is very far from the minimum and much closer to the
maximum; which indicates that buying has appeared at the lowest levels
of the range. This has a bullish connotation.
The second bar has a narrow range where the price barely moves.
moves from the close of the first. This shows a total lack of
movement. In Wyckoff's terminology, this type of bar can originate
a major swing.
In the context of those two bars, the narrow range tells us that the
the price has reached a stalemate. This in itself does not reveal the
future address, but warns us that something decisive may happen in the
third bar.

Bar #7

There is ease of movement in the first bar and the close is near.
from the maximum of the range.
The second bar, however, contains a gap between its maximum and the
minimum of the previous bar. The range is narrow and the price closes near.
below the minimum and below the minimum of the previous bar.
Although the range of the second bar is narrow, the true range
(covering the gap) is quite large; so we see that all the
profits made in the first bar are erased.
The gap probably occurs due to a bearish event that takes place.
out of the market. After the opening of the second bar, there was very little
upward movement, which reflects a bearish condition as the
buyers are not willing to make any attempt to move to the
raise.
The selling pressure and the lack of purchases make us wait longer.
weakness over the following bar.
 Bar #8

There is an ease of movement over the first bar with a

weak close near the minimum of the range.
In the second bar, the price makes an upward gap and rises above the
maximum of the first; however, the closing is above the minimum of
range and slightly below the maximum of the first bar.
The true range of the second bar starts from the close of the
First. Some unexpected bullish news caused that bullish gap.
The action of the second bar is decisively bullish as it eliminates
all the weakness of the first bar. Except for the closing position,
There are signs that the next bar will be bullish. It can lead to
confusion the weak closing of the second bar; but keep in mind that not
it is so weak when we consider its true range.

Bar #9

Both bars have narrow ranges and close near the lows. In the
the second bar opens below the minimum of the first and
remains below throughout the session.
No downward movement ease is observed on any day. The two
bars reflect a lack of interest from both buyers and
sellers. The volume is likely low to moderate. There is no
no type of climate action, only two range bars, for
greater weakness is expected on the next bar.

Bar #10

The range of the first bar does not reflect great ease of movement.
bassist and the price closes in the middle.
In the second bar, the price rises more easily but closes
away from highs, below the maximum of the first bar and only a
a little higher than its closing.
The close in the middle of the range of the first bar and the lack of a range
broad suggests that the purchase is present. A strong rise occurs.
in the second bar but the closing position indicates that it was found
sales. The close of the second bar marks the midpoint of the trading
those two days.
We can assume that trading has been vigorous, possibly volatile; without
embargo, little progress has been made. The sellers are still in
control; so we expect greater weakness on the next bar.
Depending on where the third bar opens, the information will denote to us
a bullish or bearish sentiment. This situation represents the most
ambiguous of all.

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Volume

Volume measures force. We compare the strength (or effort) of

buy or sell against the reward (profit or loss of the price)
 to determine which side is dominating and identify signs of a
imminent change in the trend.

The interpretations of the volume are reduced to a set of

basic formulas:

Price and volume rising = bullish.

2. Rising price and falling volume = bearish.
3. Price falling and volume rising = bearish.
4. Price falling and volume falling = bullish.

These are too simple and do not capture the nuance of

price and volume behavior; therefore they are only useful for
as general guidelines, since:

There are times when the price rises with decreasing volume because
fewer traders want to trade against a strong bullish trend.
Many times the price will drop with decreasing volume because the
buyers have retreated or abandoned.
The rises and falls with very high volume may indicate action.
climatic or stop.
The rises and falls with very low volume sometimes mean
exhaustion.
Many trends begin with a surge in volume, which gives rise to the
movement. After this peak, the volume sometimes goes
disappearing.

Wyckoff explained this event with the example of a wheel in

movement: May the wheel continue to turn in the same direction, that it
stop what I change direction depends entirely on the forces
that come into contact with her.

Even when the contact is broken and nothing continues to affect its course, the
wheel will maintain a certain momentum from the dominant force
most recent and will continue to turn in that direction until it stops or
other influences intervene.

Price and volume

The volume is better interpreted in conjunction with the price range and the
closing position.
An Upthrust (2a) with a bearish reversal and high volume reflects a strong
selling pressure.
A bearish break (3a) of a support with a bar that indicates ease
of movement, closing at lows and large volume indicates that the sale has
overcome the purchase.
In a bearish context, bearish bars (3b, 4a) with low volume but
Closing at a minimum indicates a lack of demand.
In a bearish context, a strong bullish bar (4b) with high volume that
does not have bullish continuity (5a, 5b, 6a) shows that demand has
failed in his attempt to raise the price and reinforces the scenario
bassist.
A bar with strong volume (7a) is breaking a
support but ultimately recovers upward indicates that effort
(volume) has not been rewarded (break of the level) and suggests to us that
buyers have entered the market.
A strong bearish bar (8a) with climatic volume and close at
minimums warns us of lower prices. The lack of continuity of
The bearish movement alerts us that they may have appeared.
buyers about that climate volume. In these circumstances of
selling pressure, the purchase is sometimes not detected.
The demand is unable to break the resistance (8b); but the
price and volume behavior on the following bars (9a
y 9b), with narrow ranges and low volume, suggests that the pressure
the seller is running out.
The closes of these candles on lows indicate that it is still possible.
a break of the previous minimum price (minimum of 8a). This break is
produced (10a) but the decrease in volume is notable and it is about the
lowest volume on a support break since it started
bearish movement (compared to 3rd and 8th). The closing position is
close to the middle of the range and more importantly, above the
minimum prior (8a). This indicates that the selling pressure is exhausted and
this action represents a decrease from the previous minimum.
Much of the gain on bar 10b is erased at the close. In a
real trading situation, the nature of the pullback would be observed from the
maximum point of bar 10b to see if the selling pressure has
withdrawn. If the volume contracts, there is a buying opportunity with
low risk. Another buying strategy would be to go long with a stop order
buying above the bar 10b.

Always stay alert that the market makes a new extreme.

of the price. At a new high, we have to take into account the
possibility of an Upthrust absorption occurring.

A break of the previous high with a close far from the highs suggests that
It is an Upthrust and it warns us of a possible bearish price reversal.
If the Upthrust candle also has a narrow range, it would indicate greater
weakness.

For the market to have a bullish continuity, buyers over

this new maximum will have to absorb both the liquidation of those
long positions of traders who will take profits, like the new one
short position entry.

Spring
A Spring is a penetration of a support level that does not have
bearish continuation that causes a bullish reversal in the price.
 When the market breaks a well-defined support line and does not have
continuity, it is considered that the price is in a potential situation
of Spring. The lack of continuity increases the possibility of reversal
alcista; but this does not guarantee that it is a Spring.

The behavior of price and volume and the general context that
surrounding that Spring situation will help us determine its
probability and significance.

This event offers a valuable trading opportunity. The potential

the profit it offers depends on the underlying trend, of the
market volatility and preparedness.

The springs that occur during a bullish trend have a

higher success rate.
Volatility sometimes dictates the size of the bullish reversal of the Spring.
The amount of preparation; which is the size of the range, also
you can determine the magnitude of the bullish movement generated by the
Spring.

The Springs are tests that give large operators a

opportunity to measure the amount of supply that exists around
these support levels. If the bearish break does not produce new selling,
the big operators identify the supply gap and buy
aggressively, generating the rapid bullish reversal.

Movements below the support levels are in

new part sale entering by observing that weakness and waiting for a
downward continuation; and there is also a portion of Stop loss of
long positions that are executed and add momentum to the downward break.

All of this tips the balance in favor of the sellers; and when the
bearish movement fails, a long position can be entered with a stop below
from the minimum. This is a purchase at the point where the risk is highest.
small; however, it does not mean that we automatically must
buy all the bearish breakouts expecting a reversal.

Since a drop below support increases the chances of

If it is about a Spring, you may wonder what the size of the
bearish movement that fits the definition of Spring.
Unfortunately, there is no fixed rule; although the perfect aspect
It would be a relatively small penetration.

A Spring that occurs with a spike in volume and a close at highs

It indicates that purchases have surpassed sales. A large has occurred.
effort that has had little reward. Suggests that someone has
absorbed all that offer, especially if the price closes far from
minimums.

In case the closing is at the lows, I would still have doubts about the
Spring. In principle, it indicates that the sellers are in control. If
after this the price does not have a bearish continuation, it warns us of a possible
behavior change. A narrow and strong range bar
volume now would indicate that there has been a great effort and little
reward. The strong volume suggests that purchases have entered and
we alarm of a potential Spring.

Not all Springs occur with an intense volume. In

situations in which the price breaks the support with low volume and
reverting upwards indicates that the penetration required little effort and
failed to attract new sales to the market (lack of selling pressure);
so the Spring was developed.

Many springs, especially those that occur with a strong volume, are
retested (Secondary Test of the Spring). The Spring test offers a
excellent opportunity to go long as it represents a
major support. Ideally, the range should be narrow and the volume
low.

A lateral movement of the price, which remains above the level

of Spring instead of falling back down also represents a
Secondary Test behavior.

UnTerminal Shakeoutes is a type of Spring that takes place at the end of a

prolonged range.
There is no better trading strategy than trading the Springs. They produce
intraday operations and create many long-term trends. For
risk management offers a way to enter a point where the
the result will be quickly determined and the risk is minimal.

When prices move below a support line,

many traders will stay away out of fear of greater declines. The trader
the professional knows more and observes the doubt or the little continuity and
quickly takes advantage of the situation. An understanding of Spring
it allows you to operate like a professional.

When the price moves above a previous resistance line

and fails to continue rising, it is considered that there is a potential
bearish reversal. A failed breakout is called Upthrust.

Like Spring, it can happen in various ways and can be

retested later.

It offers a trading opportunity at the danger point where the

the risk is minimal. Likewise, it can provide a very quick turnaround
within a trend or appearing on a higher ceiling.

They are generally more difficult to operate than the Springs. One reason
it could be the public's willingness to buy new highs, thing
what does not happen when it comes to entering short positions on new lows.
Therefore, at times we can perceive the professional purchase more
clearly about the Spring. Professional sales on the roof may
it is hidden under public purchase, which is the preferred environment for
the professional trader who takes the opportunity to close their long positions and
open new shorts.
Due to the potential Upthrusts, it is not recommended to buy in the
breaks; although trying to operate against the established trend
it can have disastrous results.

The trend is the most important consideration to know if the breakdown

Above the resistance it will fail. The supposed Upthrusts in
a bullish trend rarely succeeds; however, in a
downtrend the Upthrusts above a correction
Previous alcista have a higher likelihood of working.

There are almost an infinite number of ways in which it can happen

Upthrust. The first requirement is a previous maximum through which
draw a resistance line. A movement above that line
it becomes a potential Upthrust. The rise above that
the previous maximum may not be the decisive price action; sometimes
it is the cumulative behavior over the price bars
precedents that strengthen the context.

Upthrusts can occur on any chart regardless.

of the period of time.

A bar that creates a new high with a narrow range and a close
far from highs warns us of a potential Upthrust. A break with
a narrow range is not the characteristic of an aggressive demand capable
to resume the upward trend. If after this a decline occurs with
Strong volume indicates that sellers have taken control.

A gap or a bar with a wide range that creates a new high with a
high volume suggests to us that buyers seem to have overcome
the sale. Narrow candle ranges in the following days that do not
they produce a bullish continuity indicating to us that this great effort has
had little reward and warns us of a possible Upthrust. A
the bearish reversal finally produces the change in behavior and
offers an excellent opportunity for short entries with the Stop placed
immediately above the previous maximum.

There is no precise size measure to determine an Upthrust. A

new maximum by 10 to 15% seems like a reasonable limitation.

An Upthrust does not necessarily mean that a new one has been reached.
maximum. An Upthrust represents final action, but not necessarily
terminal action.
The Upthrusts, like the Springs, offer traders a
great advantage of low risk. The delimitation of the
ranges with support and resistance lines because it is around
those lines that occur the Upthrust and the Springs.

Upthrusts do not always depend on high volatility. In this situation,

there is no volume peak that indicates that sellers have taken
the control. Instead of this, the price develops an Upthrust with low
volume (reflecting a lack of aggressive buying), has a small
bearish reaction and will develop a Secondary Test with low volume,
which indicates that the demand has disappeared.

In ceiling formations, there can be several Upthrusts before

the bear market begins.

The trend is a primary concern when evaluating

Upthrusts. It is the preceding behavior of the price and the volume that
what reveals if a potential Upthrust will actually develop. How much
the larger the time frame over which it develops, the greater the potential
will have movement.

Absorption
How to know if a penetration test will lead to a maximum guide
bullish breakout or a bearish reversal? This is the dilemma that
we constantly face.

Upon reaching a previous maximum price, the traders who entered long
at lower levels, they will generally liquidate their positions and take
benefits. At the same time, sellers will visualize a possible
ceiling and will open new short positions, thus adding more pressure
down to the market.
 Absorption is the process by which settlement is overcome.
about the long positions and the beginning of new short positions. It can be observed on
any time frame.

The following clues point to a successful absorption (bullish break):

Increasing minima.
The volume increases around the ceiling of the absorption area.
Lack of bearish continuity after a threatening bar.
The price tends to press against the resistance line in a way
intense.
At certain moments, the absorption phase is resolved by a Spring.
Minor upthrusts during absorption fail to produce a break.
bassist.

The most common location where absorptions occur is in the ceiling of

the ranges; but they can also develop based on the ranges in
way that sellers absorb the upward pressure.

At a minimum, the bullish pressure comes from profit-taking of the

short positions and the new buy positions that are opened.
The main characteristic is that the sellers are surpassing the
buyers is the repeated inability of the price to move away
from the danger point (support). That intense push of the price against the
minimums with strong volume warns us of an imminent break and
it generally produces a bearish breakout.

When this intense bearish action fails to produce the breakout, Wyckoff
referred to such behavior as 'Bag holding'. In this situation, the
Large operators are trapping short sellers.
The absorption by the sellers is more difficult to read.
because they seem like potential springs; although the movements
bullish investors resulting from this action either succeed or fail or have a short position.
journey also develops with a low volume.

If a volume peak occurs at the ceiling of a range when penetrating the

price above it, initially we can consider this event
as a possible Upthrust. But if after a few bars the
price continues to press upward against resistance and does not manage to make
no significant bearish movement, or develops any bearish bar
but without continuity, it is possibly an absorption, since the
lack of bearish continuity indicates that sellers do not have the
market control.

Waves
Wyckoff and the early tape readers understood that the
price movements do not develop in time periods of
same duration, but they do it in waves of different sizes.
For this reason, they studied the relationship between bullish and bearish waves.

Dissect the price movements over time periods (charts

of time) does not prevent the visualization of the trend; but the division of
volume in identical time periods does interfere with the ability
to determine the true buying and selling power. In a sense, the
the volume message is lost in time.

This type of chart is composed of price (time), with a line

what distinguishes the waves (length) and the accumulated volume for each
 wave (volume). Together, it allows us to evaluate the conditions of
market and compare the bullish and bearish pressure more accurately
between waves.

During a bullish trend, we want to see that the movements

short-term bassists with a lower accumulated volume; this
suggests that there is a lack of supply and offers a long entry.

A decrease in the accumulated volume on bullish waves that creates

new highs denote exhaustion and suggest a lack of demand.

During a downward trend, we will look for upward movements

short-term and with a lower accumulated volume; this denotes
a lack of demand and offers a short entry.

A decrease in accumulated volume on bearish waves that create

New lows denote exhaustion and suggest a lack of supply.

If the price penetrates a resistance with strong volume and reverses; and after
this starts another new bullish movement but that does not manage to reach the
previous extreme and also shows a much lower accumulated volume,
indicates a lack of demand and confirms the potential Upthrust on the
movement that penetrates the resistance.

The wave patterns combined with Springs, Upthrust,

Absorptions and breakage tests work extremely well.

When a Spring/Upthrust occurs, look for a change in the

behavior of the waves. If the bullish/bearish pressure decreases
about the pullback, take the trade and protect it with a stop for
below/above the end.
When a bullish/bearish breakout occurs with strong volume, observe
carefully the character of the recession. A low volume at this point
indicates that it is a successful test of the breakage and the trend should
resume. The protection Stop is placed immediately by
above/below the pivot of the retracement.

Shortening Of the Thrust(SOT)

The main idea is the lack of continuity, just like what happens with the
Spring and the Upthrust.
 It is a decrease in the distance that the price travels
maximum to maximum; or from minimum to minimum. For this
behavior to be valid, requires a minimum of three pushes.
After three or four successive bullish or bearish waves or impulses,
look for a shortening in the final wave.

When price advancement shortens but there is strong volume,

it means that the great effort obtained little reward; in the case of a
bearish example, demand would be appearing; and in a bullish example
the offer would be appearing.
When the price advance shortens and there is also weak volume,
it means exhaustion; in the case of a bearish example, the supply is
would be withdrawing; and in a bullish example, it would be the buyers who
they are withdrawn from the market.

When there are more than four successive waves and the shortening persists.
of the thrust, the trend may be too strong to
to act against him.

The shortening of the thrust is mainly determined by the

maximums and minimums of the price bars and not by the turning points
of the waves. But the volume of the wave tells us the strength or weakness
of demand and supply.

After shortening the thrust, we want to see that the new wave in the
the opposite direction has a high volume, denoting intentionality.

Always keep in mind the context in which it takes place

shortening of the thrust.
If the price breaks the ceiling of a range and reverses, this action is a
potential Upthrust. If after a few downward waves an
shortening of the thrust and suggests a purchase operation; you must
take into account that the price comes from developing an Upthrust and that it
It is more likely to continue falling. Any purchase operation
should be avoided, and in case it is taken, quickly closed afterwards
a weak response.