forked from animatedread/Warrior_EA
874 B
874 B
The Accumulation Process (Part 4, Ch.12)
The accumulation process is the systematic absorption of supply by well-informed traders at progressively higher support levels within the range. Key characteristics:
- Declining volume throughout Phase B — professionals have acquired most of the available supply; fewer contracts remain to be absorbed.
- Higher lows during tests — each test of the support zone makes a slightly higher low, indicating that sellers are unable to push price as low as before.
- Creek defense: Professional traders place limit orders at the upper boundary (Creek) to keep the range contained and prevent premature breakout.
- Final test before markup: The Spring (if it occurs) is the professional's final opportunity to verify the path of resistance upwards is clear. After a successful Spring and test, the markup is ready.