A famous price pattern that helps you understand how smart money (like institutions or big traders) accumulates a coin before a big move up.
Let me break it down in very simple language, phase by phase, and then explain how to use it.
🔍 What’s the purpose of this pattern?
It shows how a coin is accumulated (bought slowly) at low prices, and then pushed up after big players have collected enough.
✅ BASIC STRUCTURE: 5 PHASES (A to E)
PHASE A: The Stop of the Downtrend
PS (Preliminary Support): First sign of big buying coming in.
SC (Selling Climax): Panic selling, big drop — but smart money is quietly buying here.
AR (Automatic Rally): Price bounces up after too much selling.
ST (Secondary Test): Comes back down to test the support level.
👉 This phase is where the falling trend stops, but the market is still unsure.
PHASE B: The Build-up (Smart Money Accumulates)
Price moves up and down in a range.
Smart money is buying slowly without pushing the price up too fast.
You may see a fake breakdown (ST in Phase B) to scare people out.
👉 This phase can last a while. Its all about accumulating without attention.
PHASE C: Final Trap and Confirmation
LPS (Last Point of Support): Final shakeout to trap late sellers or scare weak hands.
It may go below support quickly, then back inside the range.
This is where the big move is getting ready.
👉 Think of this like a spring. Its the last pull before it shoots up.
PHASE D: The Takeoff
SOS (Sign of Strength): Price breaks above resistance with volume.
BU/LPS (Back Up / Last Point of Support): Price comes back a little to test the breakout zone — and holds strong.
👉 This is when the smart money starts showing power. Good place to enter a trade.
PHASE E: The Uptrend Begins
- Price moves up strong and fast.
- Public starts noticing. Late buyers jump in.
👉 Here’s where you hold your position and let profits run.
🎯 How to Use It (as a trader):
1. Identify the Range
Look for a coin that has:
- Fallen a lot
- Now moving sideways for days or weeks
2. Mark Support and Resistance
Draw the box (top = resistance, bottom = support) like in the diagram.
3. Watch for Spring (Phase C)
If price fakes below support and then comes back — it’s your signal that smart money is done accumulating.
4. Enter at BU/LPS (Phase D)
Best and safest entry is when price breaks above resistance (SOS), then pulls back and holds (LPS/BU).
5. Hold in Phase E
Let the price run. It’s the start of the uptrend.
🧠 Bonus Tip:
Combine this pattern with volume analysis. Volume usually spikes at:
- SC (huge panic selling)
- SOS (powerful breakout). #BinanceAlphaAlert