All language subtitles for 3. When should we continue to prioritize the current context

When should we continue to prioritize
the current context?

Our main mission when analyzing a chart
is to determine which direction the

market appears to be leaning towards
based on the signs we are analyzing and

only consider trading almost exclusively
in that direction.

If we see an accumulation below the
current price, the market is unbalanced

the upside and most market traders
believe that the price will continue to

The big issue for us now is to determine
if the effect that has been generated

from the last cause has already run its
course.

Quantifying the effect that the
previously established cause will have

unanswerable question of the law of
cause and effect.

What happens if the last accumulation or
distribution that shows the last

control of the market was a long time
ago?

We can determine possible areas where
the market might go, but we will never

know exactly when that outcome will
happen. And since we have no control

this, we need to turn our focus to what
we can control.

For this, common sense usually comes in
handy.

Let's think.

If we have an accumulation below that is
determining the bias of the current

market, doesn't it make sense to
maintain said bias until a cause arises

might overturn the current one?

That is to say, we should continue to
search for buying opportunities until

context changes from a bullish setting
to a sideways or bearish setting.

But note, one whose cause has the same
potential capacity as that which has

prevailed up until now.

Our job is to constantly compare the
power of a structure and the size of the

cause that has been built up, whilst, of
course, prioritizing those that appear

to have a greater capacity over the
others.

To the question that is asked on the
slide, the obvious answer, in principle,

no.

Based on what we have just explained,
the small structure marked in gray

not be able to overturn the accumulation
below it, fundamentally because of its

short duration.

which suggests that it is unlikely that
a significant enough cause has been

built up to wrestle control of the cause
that may have been generated in the

accumulation. Therefore, the analyst
should continue to prioritize the

context, making the assumption that the
cause built up in the accumulation

structure has a greater capacity than
that in the current structure.

But up to what point?

Well, that is until we see a structure
that could genuinely achieve this

development. and throw up the
possibility that control has changed

And here is an example of a structure
that could overturn the accumulation

structure below in terms of the possible
construction of the cause.

As soon as we see signs that we could be
seeing a potential distribution

structure, we should at least stop
assessing the possibility of going long

settle into a more neutral position.

Later on, we will find out whether
bullish intent has returned or whether,

the contrary, we should start to look
for opportunities to sell.

However, at least at this point, we
should eliminate the directional bias

we have carried with us.

If we bought during the accumulation,
seeing a structure develop like this

possible distribution is obviously also
reason enough to close the position or

at least protect it to avoid potential
losses.