Original subtitles

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.