(This article takes TOMO as an example. It is currently in a natural decline and secondary test. The subsequent distribution confirmation and weak characteristics will be verified as the market moves forward. The distribution technology post also follows the actual teaching. I will share an internal dry goods article. It is not easy to write. Thank you for your attention and likes. The previous accumulation technology post can be entered on the homepage, post No. 21)
Four stages of shipping
1. The first stage is how the stage market ends
2. How does the main capital set up the delivery (distribution) area in the second stage?
3. During the testing process, the main funds want to confirm that the demand has been exhausted. It confirms that the market is in the distribution stage and is nearing the end (the top is established)
4. The peak signal appears, and then enters the callback
The decreasing amplitude of the upward breakthrough indicates that demand is beginning to weaken or the pressure from supply is increasing. The breakthrough amplitude is the distance between the two rising wave vertices, but sometimes we see many small rising waves in the trend, which belong to the sub-trend. We use the rising wave of the main trend to determine the rising amplitude. The decreasing amplitude of the breakthrough indicates that as the price rises, demand begins to be scarce. The lack of demand will cause the supply to become active. The subsequent supply and demand relationship can tell us whether the distribution has begun.
(As shown in Figure 1) TOMO has been moving upward around the trend line since March. After the price gapped to 2.5, the demand began to be scarce.
Initial supply area:
Initial supply is the first time a large amount of supply appears in a one-sided market. The initial supply is shown in the chart as a large volume (significantly exceeding the usual trading volume). Large volume means that the supply is expanding. The small trading volume at ordinary times is due to insufficient supply (to maintain the order of the upward trend). Initial supply only temporarily prevents the development of the bull market, not the end of the market. Because from the perspective of cause and effect, the formation of a new trend requires a preparation process. The main funds absorb a huge amount of stocks in the accumulation stage, and they always need some time to sell the goods.
High shopping:
The distribution (or delivery) of the main funds is nothing more than selling the chips bought during the accumulation period during the distribution stage. The public traders are the receivers, and most of the reasons they buy are because of the good news in the market at that time (of course, the main funds are the ones who designed these news).
Natural fallback and secondary testing:
The market behavior after the buying climax is a natural decline and secondary test.
It is a signal for bulls to exit.
It confirms that a large amount of market demand has been consumed.
It marks the end of the bull market.
This is a time when greed and rationality are particularly tested. The second test is to see whether the purchasing power of mass traders has been exhausted, and also to see whether the bull market order of the market can maintain "new highs". The low point of the natural decline and the high point of the second test form a shock zone.
