It’s a very busy diagram with a few acronyms on which represent different phases of accumulation but they are expanded upon below. These won’t be a perfect fit if you overlay the theoretical pattern on to a price chart but oftentimes will be pretty close:
Phase A: Preliminary Support (PS) – a brief reprieve on a downtrend (usually the first halt after the end of a distribution) Phase A: Selling Climax (SC) – a price that’s low enough causing spooked retail investors to sell (i.e. weak hands) Phase A: Automatic Rally (AR) – an instant rebound from the SC as selling pressure has gone and smaller buying volume easily moves the price back up again Phase A: Secondary Test (ST) – the price drops again to test the supply and demand balance at this level Phase B: ST – Prices move sideways in this region between the AR and ST although sometimes go above/below the range to keep retail unsure about getting involved in the market. Phase C: Spring – a downward manipulation of price to continue to spook retail and a chance for big players to scoop up more cheap sats that they didn’t manage to get earlier on. Phase D: Last Point of Support (LPS) – prices start to move up again and will correct down again to the LPS but with much lower sell volume Phase D: Sign of Strength (SOS) – the price moves up again above the resistance lines with more buying volume, ready to exit the accumulation in phase E.
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