All language subtitles for 10. Proportionality of movements

Proportionality of Movements Any issue
that involves a certain amount of

subjectivity provides a constant source
of doubt for Wyckoff method craters.

This aspect of proportionality is one
such issue.

This part of the course will address how
we should properly evaluate price

actions based on the time the distance
consumed by the current movement

to previous movements to try to
determine whether they are in harmony.

This will help us decide what to expect
next. On this occasion, When we talk

about proportionality, it has nothing to
do with the proportionality of the

phases, where theoretically phase B
should last longer than phases A and C.

In this case, I am referring to the
variables of time and projection,

specifically, the time consumed and the
distance covered in relative terms by

the movements in order to validate
these.

The key is relativity, the comparison
between the current and previous

movements.

This problem tends to arise almost
exclusively when it comes to analyzing

anatomy of a correction with respect to
its previous momentum.

More specifically, with regard to the
Wyckoff method, it usually occurs when

looking for the test after the breakout
movement.

Let's look at the chart in the example.

Should we assume that the BUEC or test
after the bullish break has ended there

and accepted as valid?

As we already know, in the market,
anything is possible.

So, this might well be the case.

But the fact that it can occur doesn't
mean that it's normal. And our advantage

also lies in looking for those behaviors
that appear more regularly in the

market.

But if we analyze the appearance of the
previous movement, both the time and the

distance traveled seem to be greater.

Let's look in particular at the
corrective movement.

As we can see, from the highs to the
lows, the two behaviors are totally

different. The lower one, which is the
one we should take as a reference,

travels a greater horizontal and
vertical distance.

That is, it has greater depth in terms
of price and longer duration in terms of

time.

Meanwhile, the potential test after
bullish break travels very little

both in price and in time.

As I said, sometimes we will see that a
small and brief test like the one in the

example will be the genuine BUEC that
will confirm the structure as an

accumulation and will start the
imbalance that sends the price out of

especially in assets that denote a lot
of underlying strength.

But in the vast majority of cases, this
will not happen, and the market will

take a longer time to develop this type
of behavior.

And as we see in the final outcome, this
principle of proportionality was

fulfilled, with the market continuing to
develop the corrective movement before

initiating the subsequent upward
imbalance.

This example is especially interesting
as it almost exactly matches the

horizontal and vertical distance
traveled.

I personally think this is a
coincidence, but hey, maybe there is a

behavior in which these movements are
respected.

I'll leave this analysis and
investigation to you.

We should not necessarily look for the
exact same proportionality in time and

price. We already know that, due to the
dynamic nature of the market, the same

concept may be represented in a
different way.

If the correction is not comparable in
terms of projection, because it does not

go back the same distance in terms of
price, it should at least be comparable

terms of time.

This would also indicate a certain
harmonious behavior.

It may not cover the same vertical
distance, but our flexible mindset

enable us to see this action also as
proportional, having covered a

horizontal distance.

We do not need to expect it to be
exactly, mathematically the same.

As with many other concepts, we need to
apply logic and common sense to our

assessments and analysis.

and a very useful recommendation to
ensure we apply this logic is to never

the analysis.

If you have any doubts about whether the
correction is proportional enough, it

most likely is not, so hold out.

This is the key.

It should be visually significant enough
so that you don't have to think too

much about it. From a trading point of
view, we should use this concept so we

don't enter the market early in this
context.

If we see that the market may have
developed that test, that we were

after the breakout.

If it raises doubts because it seems too
brief and not especially harmonious,

instead of immediately entering the
market, we should wait for a little more

time to be consumed so we can determine
the proportionality with respect to

previous movements.