All language subtitles for 4. b Type profile

We will now talk about profile type B.
This type of profile is characteristic

bearish trend movements and is
representative of future accumulation

redistribution structures.

Individually, this type of profile
signals an imbalance in favor of the

The sellers are in control and have
pushed the price sharply lower until

buyers finally appear and a new rotation
process is generated.

In the context of a longer -term bearish
trend, they appear with a

redistributive character that are
excellent areas to look for inclusion in

trend. As with the P pattern, the
theoretical type B is formed by a

imbalance as the first part and a value
creation as the second part.

An initial rotation followed by an
imbalance to the upside would also

visually with a B -shaped profile.

But, trading may not be able to take
advantage of the initial imbalance.

On the other hand, it would not have the
same implications when analyzing the

health of the preceding uptrend, where
we are looking for upside rejection and

value creation below.

As we have already mentioned, the
problem with this type of reversal

that by the time we visualize it, it is
too late to take advantage of the

uptrend. The positive point is that it
activates the context in favor of this

movement and, although it is likely that
a new range will develop in the short

term, we should favor the subsequent
upward continuation of the price.

This is exactly what happens in this
example.

We have an inverted P pattern leaving a
strong upward movement.

If we were not able to take advantage of
this impulse, we know that the dynamics

of the market will follow an unbalanced
move with a balanced or range move.

The key to having identified the
inverted profile is that it should bias

trading to the long side, putting us in
a position to take advantage of the

potential subsequent move.

Finally, it is also useful to identify B
-shaped profiles when they signal a

strong V -turn, leaving a trap or false
breakout type of action.

This behavior indicates a major
underlying weakness. It is a failed

where the price has attempted to move
higher but has been rejected, so the

probability of a move in the opposite
direction is relatively high.

This type of stock leaves us with a
bearish directional bias.

So based on this context, we should only
evaluate the possibility of looking for

potential short opportunities after
identifying it.

So these are the three main
representations of B -shaped profiles

be looking for.

It is useless for us to draw generalized
conclusions after observing the

distribution of this type of profile
without first analyzing how the profile

evolved. As we can see, in some cases,
the evolution can suggest completely

different interpretations.

The conventional profile indicates
weakness.

The context is bearish because the
market had enough capacity to push the

down before developing a new range.

And since we should always prefer the
direction of the prevailing trend, we

should focus on looking for selling
opportunities in this case.

With the inverted shape profile, we have
a representation whose range and trend

suggest underlying strength.

In a bullish context, the market will
most likely continue to rise.

so we should focus on trying to identify
potential buying opportunities.

Finally, the profile that leaves a P
-shape with a refusal to trade at higher

prices is a very powerful print that
suggests great weakness.

In this context, the directional bias is
clearly to the downside, so we should

focus on looking for potential short
trades.