1 00:00:00,769 --> 00:00:05,570 Identifying Trading Zones Having successfully completed the first two 2 00:00:05,570 --> 00:00:09,490 our trading plan, where we have determined the market context and also 3 00:00:09,490 --> 00:00:13,470 of trading we are going to carry out, we will now move on to the next phase, 4 00:00:13,650 --> 00:00:15,270 Step 3 of the trading plan. 5 00:00:15,890 --> 00:00:19,590 Here, we will learn to identify the most important trading levels and zones 6 00:00:19,590 --> 00:00:23,630 which we need to take into account, those in which we are going to look for 7 00:00:23,630 --> 00:00:25,110 appearance of our entry trigger. 8 00:00:25,630 --> 00:00:29,630 Remember, everything we have looked at up to now has helped us to answer the 9 00:00:29,630 --> 00:00:31,990 first and most important question in our trading plan. 10 00:00:32,350 --> 00:00:34,710 What do we want to do? Buy or sell? 11 00:00:35,270 --> 00:00:39,090 The answer to this question will always be dependent on the market condition and 12 00:00:39,090 --> 00:00:40,090 its context. 13 00:00:40,270 --> 00:00:44,470 The market can only be in two situations, a range or a trend. 14 00:00:45,010 --> 00:00:47,810 Within these, there are only three possible trading contexts. 15 00:00:48,450 --> 00:00:53,290 In a bearish context, once a distribution appears, we should only 16 00:00:53,290 --> 00:00:56,400 operations. preferably false breakouts at previous highs. 17 00:00:56,980 --> 00:01:01,500 In a bullish context, once an accumulation appears, look for buy 18 00:01:01,840 --> 00:01:04,200 preferably false breakouts at previous lows. 19 00:01:04,879 --> 00:01:10,400 In a neutral context, depending on our profile as a trader, we can trade at 20 00:01:10,400 --> 00:01:14,200 extremes, preferably favoring the direction of the trend prior to the 21 00:01:14,200 --> 00:01:15,260 establishment of the range. 22 00:01:15,800 --> 00:01:19,820 From that point and once we have decided which direction we want to position 23 00:01:19,820 --> 00:01:22,780 ourselves, it is time to look for the right trading zone. 24 00:01:23,729 --> 00:01:28,410 Over the duration of the course up to now, we have already started to look at 25 00:01:28,410 --> 00:01:32,210 this, but now we will distill it further so it is absolutely clear. 26 00:01:32,890 --> 00:01:36,390 The context will determine the type of trade that we should execute at all 27 00:01:36,390 --> 00:01:41,510 times. In a bullish or bearish context, we should trade with the trend, be it 28 00:01:41,510 --> 00:01:46,010 bullish or bearish, and in a neutral context, when we are already in a 29 00:01:46,010 --> 00:01:48,970 sideways movement, we should apply a form of range trading. 30 00:01:49,710 --> 00:01:54,050 Within each of the two major types of trading we can identify different zones 31 00:01:54,050 --> 00:01:58,250 levels, which will be the ones we will use to look for our entry point into the 32 00:01:58,250 --> 00:02:02,110 market. We will now look in more detail at each of these. 33 00:02:02,770 --> 00:02:07,470 Let's start with the neutral context, in which the price begins to develop a new 34 00:02:07,470 --> 00:02:11,690 structure, and based on this we will look at the entire module on identifying 35 00:02:11,690 --> 00:02:12,690 operating zones. 36 00:02:13,490 --> 00:02:17,470 The general recommendation is that unless there are sufficient signs to the 37 00:02:17,470 --> 00:02:21,410 contrary, we should bear in mind the direction of the previous trend and 38 00:02:21,410 --> 00:02:23,150 continue trading in this same direction. 39 00:02:23,870 --> 00:02:28,910 In other words, until we see a potential Phase C test event appear, the more 40 00:02:28,910 --> 00:02:32,290 conservative trader should trade only in the direction of the latest trend. 41 00:02:32,790 --> 00:02:36,730 A more aggressive trader might consider trading after false breakouts at the 42 00:02:36,730 --> 00:02:39,930 edges, until the potential Phase C false breakout appears. 43 00:02:40,350 --> 00:02:44,110 Once the Phase C false breakout appears, only trade in that direction. 44 00:02:45,040 --> 00:02:48,960 The reason why we should trade in the direction of the previous trend is due 45 00:02:48,960 --> 00:02:52,860 the fact that, at an early stage in the development of a structure, we don't 46 00:02:52,860 --> 00:02:56,780 really know if the context of the market has changed and if it is now going to 47 00:02:56,780 --> 00:03:01,680 start moving sideways, or if instead it is a simple corrective process that will 48 00:03:01,680 --> 00:03:04,060 then be followed by a continuation of the trend. 49 00:03:04,840 --> 00:03:09,000 In the end, a trend is an unbalancing of the market in one direction and 50 00:03:09,000 --> 00:03:12,600 therefore, at the beginning of a range, there may still be some imbalance 51 00:03:12,600 --> 00:03:13,640 towards that side. 52 00:03:14,350 --> 00:03:17,350 At this point, we can play with two inputs in our favor. 53 00:03:17,690 --> 00:03:20,890 The fact that we are going to favor trading in the same direction as the 54 00:03:20,890 --> 00:03:25,430 previous imbalance, applying the principle of technical analysis, which 55 00:03:25,430 --> 00:03:28,750 that the market will continue to move in the same direction in which it has been 56 00:03:28,750 --> 00:03:33,010 moving previously, and the fact that what we are seeing might not be a slow 57 00:03:33,010 --> 00:03:37,030 structure, but a much faster pattern that would act as a simple corrective 58 00:03:37,030 --> 00:03:38,350 process of the current trend. 59 00:03:39,290 --> 00:03:44,360 As we see in this example, A market in a trend context develops many pauses 60 00:03:44,360 --> 00:03:45,360 within itself. 61 00:03:45,560 --> 00:03:50,400 This is the nature of the market, impulsive and corrective movements in 62 00:03:50,400 --> 00:03:51,400 one direction. 63 00:03:51,480 --> 00:03:55,340 And depending on the conditions that exist in the market at that moment, 64 00:03:55,340 --> 00:03:59,200 corrective movements will develop in one way or another, more or less quickly 65 00:03:59,200 --> 00:04:00,520 and more or less intensely. 66 00:04:01,060 --> 00:04:05,240 But the key is to realize that the market is still unbalanced in favor of 67 00:04:05,240 --> 00:04:09,680 direction, and that is why we need to be wary of the implications of corrective 68 00:04:09,680 --> 00:04:13,950 movements. and not start trading against the main trend at the slightest hint of 69 00:04:13,950 --> 00:04:14,950 a change. 70 00:04:15,030 --> 00:04:18,870 Remember what we learned in the module on determining the trading bias of a 71 00:04:18,870 --> 00:04:19,870 structure. 72 00:04:19,910 --> 00:04:23,270 Let's assume that we are in the middle of a bearish trend and the market begins 73 00:04:23,270 --> 00:04:24,149 to reverse. 74 00:04:24,150 --> 00:04:28,670 Our first hypothesis is that it could simply be a minor correction, after 75 00:04:28,670 --> 00:04:29,990 the downtrend will continue. 76 00:04:30,330 --> 00:04:33,810 So at that point, we should be in a position to look for possible short 77 00:04:33,810 --> 00:04:34,810 positions. 78 00:04:35,210 --> 00:04:39,560 Applying the aforementioned principle of continuity, We must not anticipate the 79 00:04:39,560 --> 00:04:44,120 behavior of the market and assume, at this point, that we are facing a change 80 00:04:44,120 --> 00:04:47,440 context that will make the market migrate to a sideways environment. 81 00:04:48,360 --> 00:04:51,660 We must let the market itself inform us. How? 82 00:04:52,020 --> 00:04:56,140 Well, in the only way it can, by demonstrating the change of character 83 00:04:56,140 --> 00:04:57,480 starting a sideways movement. 84 00:04:58,360 --> 00:05:02,300 When we work with this type of hypothesis, in which we are looking for 85 00:05:02,300 --> 00:05:05,920 continuation of the trend after a simple correction, how can we enter the 86 00:05:05,920 --> 00:05:07,700 market? What is the trading zone? 87 00:05:08,260 --> 00:05:12,420 Initially, and due to the possible momentum of the market, we do not have 88 00:05:12,420 --> 00:05:16,980 identified trading zone. So in these fast -moving situations, we can make use 89 00:05:16,980 --> 00:05:20,640 a very powerful concept that can help us identify the end of a movement. 90 00:05:21,380 --> 00:05:26,120 This involves analyzing candlesticks to confirm as soon as possible the end of a 91 00:05:26,120 --> 00:05:28,660 swing and the potential start of a price reversal. 92 00:05:29,450 --> 00:05:33,970 In this regard, the first thing we need to do is identify the last candlestick 93 00:05:33,970 --> 00:05:36,690 showing intent in favor of the direction of the current movement. 94 00:05:37,230 --> 00:05:41,470 We are going to assume that this indicates the current control of the 95 00:05:41,470 --> 00:05:42,470 the short term. 96 00:05:42,630 --> 00:05:46,830 Remember that due to the pure fractality of the market, this upward movement 97 00:05:46,830 --> 00:05:50,850 that represents the correction is actually an upward trend in lower time 98 00:05:51,150 --> 00:05:54,810 Therefore, in the very short term, the prevailing trend is bullish. 99 00:05:55,470 --> 00:05:59,290 We need to use a tool to determine the breakout of this if we do not want to 100 00:05:59,290 --> 00:06:03,270 move to a lower time frame and look for some minor distribution process there. 101 00:06:04,110 --> 00:06:09,110 In this example, the candlestick showing bullish intent is the last SOS bar I 102 00:06:09,110 --> 00:06:10,110 have marked. 103 00:06:10,190 --> 00:06:13,830 This is the candlestick we will take into account in applying this concept. 104 00:06:14,630 --> 00:06:18,470 What we will do is wait for the price to close below the low of this bullish 105 00:06:18,470 --> 00:06:23,250 bar, as a sign that control of the short -term market has reversed in favor of 106 00:06:23,250 --> 00:06:24,250 the sellers. 107 00:06:24,460 --> 00:06:27,980 And this happens precisely with the last SOW bar. 108 00:06:28,380 --> 00:06:32,820 So if there is no overriding sign that conditions the current one, we would be 109 00:06:32,820 --> 00:06:36,860 in a position to expect a scenario in which there will be a new bearish 110 00:06:37,760 --> 00:06:41,180 But the market did not develop as predicted in our first scenario. 111 00:06:41,760 --> 00:06:45,920 We can continue to make use of the reversal concept and determine that it 112 00:06:45,920 --> 00:06:48,920 ended after seeing candlesticks showing the opposite intent. 113 00:06:49,530 --> 00:06:54,250 as is the case here with the last SOS bar that closes above the last SOW bar. 114 00:06:55,070 --> 00:07:00,190 The first hypothesis would be to expect continuation, but once we have confirmed 115 00:07:00,190 --> 00:07:03,970 that the market has failed to continue falling and instead has started to 116 00:07:03,970 --> 00:07:08,650 develop a short sideways movement, our next hypothesis should be to wait for 117 00:07:08,650 --> 00:07:11,770 development of a fast accumulation or distribution pattern. 118 00:07:12,710 --> 00:07:14,490 You've now got the idea, right? 119 00:07:14,810 --> 00:07:17,030 It is about going from less to more. 120 00:07:17,550 --> 00:07:21,640 First of all, we hypothesize that we are looking at a simple correction within 121 00:07:21,640 --> 00:07:26,220 the trend. And if this does not develop, we hypothesize that we are looking at a 122 00:07:26,220 --> 00:07:30,060 longer -lasting corrective process, or what I have called a rapid accumulation 123 00:07:30,060 --> 00:07:31,420 or distribution pattern. 124 00:07:31,900 --> 00:07:36,440 And if this doesn't develop either, the hypothesis we will work under is that we 125 00:07:36,440 --> 00:07:40,540 are observing one of the slow patterns suggested by the Wyckoff method, a 126 00:07:40,540 --> 00:07:42,880 classic accumulation or distribution structure. 127 00:07:43,880 --> 00:07:48,490 Looking at this particular example, Once we determine that it is not a simple 128 00:07:48,490 --> 00:07:53,190 correction, the trading zone for this context is located at the last high 129 00:07:53,190 --> 00:07:54,690 point generated by the price. 130 00:07:55,390 --> 00:07:59,290 Here, we will wait for the development of one of the fast distribution 131 00:07:59,690 --> 00:08:03,810 We already know that a climax will not develop since this belongs to the 132 00:08:03,810 --> 00:08:07,770 previous hypothesis of a simple correction prior to the continuation of 133 00:08:07,770 --> 00:08:08,770 downtrend. 134 00:08:09,010 --> 00:08:12,450 Therefore, we must wait for the appearance of one of the three remaining 135 00:08:12,450 --> 00:08:15,490 patterns, a double top, pullback, or trap. 136 00:08:16,400 --> 00:08:19,120 I personally always wait for the appearance of a trap. 137 00:08:19,580 --> 00:08:24,340 This behavior, as you already know, corresponds to a false breakout or 138 00:08:24,740 --> 00:08:29,220 So at that point, we would already have everything aligned, the bearish context, 139 00:08:29,540 --> 00:08:33,659 and at the identified trading level, we would wait for the appearance of a 140 00:08:33,659 --> 00:08:37,880 bullish false breakout and enter the market with a short position and wait 141 00:08:37,880 --> 00:08:39,500 the continuation of the bearish trend. 142 00:08:39,940 --> 00:08:42,840 But the market doesn't follow this hypothesis either. 143 00:08:43,179 --> 00:08:45,740 The visit to said level does not take place. 144 00:08:46,010 --> 00:08:47,930 and instead it continues to move sideways. 145 00:08:48,570 --> 00:08:52,170 At this point, it is already evident that we are dealing with a slow 146 00:08:52,170 --> 00:08:53,990 accumulation or distribution structure. 147 00:08:54,590 --> 00:08:59,210 As we can see, we have been reacting to the behavior of the market and applying 148 00:08:59,210 --> 00:09:01,330 different concepts depending on the situation. 149 00:09:02,010 --> 00:09:07,030 At this point, since we are already in Phase B, as we have previously 150 00:09:07,210 --> 00:09:10,030 we have two trading options depending on the trader profile. 151 00:09:10,770 --> 00:09:14,010 The conservative profile will only look for selling opportunities. 152 00:09:14,700 --> 00:09:18,400 influenced by the preceding trend while the more aggressive trade might look for 153 00:09:18,400 --> 00:09:19,740 opportunities in both directions. 154 00:09:20,440 --> 00:09:22,980 What are the trading zones then in this context? 155 00:09:23,380 --> 00:09:27,460 We already know the answer to this. The supply and demand zones that are 156 00:09:27,460 --> 00:09:29,740 generated at the upper and lower edges of the range. 157 00:09:31,720 --> 00:09:36,580 Personally, I like to use only the absolute limits of the structure because 158 00:09:36,580 --> 00:09:39,640 false breakout at these edges fills me with more confidence. 159 00:09:39,960 --> 00:09:42,940 But they can just as easily be treated as wider zones. 160 00:09:43,440 --> 00:09:47,200 since the appearance of reversal at the edges is a process that covers a certain 161 00:09:47,200 --> 00:09:48,200 distance. 162 00:09:48,400 --> 00:09:52,580 In any case, if you decide to take into account the supply and demand zones 163 00:09:52,580 --> 00:09:56,900 instead of only the absolute limits of the structure, don't look to enter the 164 00:09:56,900 --> 00:09:59,400 market simply because the price reaches that zone. 165 00:10:00,020 --> 00:10:03,600 Instead, wait for a minor false breakout to appear in this area. 166 00:10:04,180 --> 00:10:08,060 This combination will give you better results, since you will be trading false 167 00:10:08,060 --> 00:10:12,260 breakouts in zones at the edges, which implicitly denote overbought and 168 00:10:12,260 --> 00:10:13,260 conditions. 169 00:10:13,440 --> 00:10:18,060 My recommendation is that you do not try to trade false breakouts in the middle 170 00:10:18,060 --> 00:10:18,799 of the range. 171 00:10:18,800 --> 00:10:22,900 The more central the zone is with respect to the limits of the range, the 172 00:10:22,900 --> 00:10:27,580 balance and acceptance it represents, and therefore the lower the probability 173 00:10:27,580 --> 00:10:28,580 breakout success. 174 00:10:28,820 --> 00:10:32,780 As we have said, the edges of the range represent overbought and oversold 175 00:10:32,780 --> 00:10:33,780 situations. 176 00:10:34,020 --> 00:10:37,860 This, in itself, offers an opportunity to buy low and sell high. 177 00:10:38,620 --> 00:10:42,490 Therefore, if you trade inside the structure instead of at the edges, you 178 00:10:42,490 --> 00:10:46,330 be buying and selling at a fair price, which means that you won't benefit from 179 00:10:46,330 --> 00:10:47,109 any advantage. 180 00:10:47,110 --> 00:10:51,470 In those central points, the market can go both up and down without any 181 00:10:51,470 --> 00:10:53,290 conditioning factor, almost randomly. 182 00:10:53,730 --> 00:10:57,950 The real advantage in a range context is offered by trading at its edges. 183 00:10:58,430 --> 00:11:01,170 How long can we implement this trading at the edges? 184 00:11:01,490 --> 00:11:03,250 We already know the answer to this. 185 00:11:03,570 --> 00:11:07,750 Until the definitive false breakout that is likely to generate the start of the 186 00:11:07,750 --> 00:11:09,210 imbalance of the structure appears. 187 00:11:10,010 --> 00:11:14,750 And so this is our next trading zone, the absolute edge of the structure, 188 00:11:14,750 --> 00:11:18,710 we will expect the Phase C test event to develop a total false breakout of the 189 00:11:18,710 --> 00:11:23,850 range. In our example, it appeared below the range, so the odds suggest that we 190 00:11:23,850 --> 00:11:25,430 are looking at an accumulation pattern. 191 00:11:25,750 --> 00:11:30,530 From that point on, regardless of what kind of trader you are, the context and 192 00:11:30,530 --> 00:11:34,410 the roadmap point in a single direction, so you should only assess opportunities 193 00:11:34,410 --> 00:11:38,770 in favor of this false breakout, as has been suggested throughout this course. 194 00:11:39,390 --> 00:11:42,550 The next trading zone appears during the development of the trend movement 195 00:11:42,550 --> 00:11:44,470 within the range, during Phase D. 196 00:11:45,310 --> 00:11:48,890 You should bear in mind that finding opportunities in this context will not 197 00:11:48,890 --> 00:11:49,890 always be possible. 198 00:11:50,010 --> 00:11:53,850 It will depend on the momentum that the market carries and the distance between 199 00:11:53,850 --> 00:11:54,950 the edges of the range. 200 00:11:55,590 --> 00:12:00,310 In this case, we see that there is a great distance, so it was likely to be 201 00:12:00,310 --> 00:12:03,210 to identify some opportunity in favor of the bullish roadmap. 202 00:12:03,950 --> 00:12:08,710 The price is capable of developing a good upward movement that reaches the 203 00:12:09,020 --> 00:12:13,000 but fails to break the structure at the top, which is why we call it a minor 204 00:12:13,000 --> 00:12:14,000 sign of strength. 205 00:12:14,220 --> 00:12:18,500 From there, it develops a smaller structure, and here we find our next 206 00:12:18,500 --> 00:12:21,440 zone, at the lows that it generates in said structure. 207 00:12:22,060 --> 00:12:23,840 This is a high -quality trade. 208 00:12:24,220 --> 00:12:28,460 In our favor, there is the major shakeout we have just seen, the sign of 209 00:12:28,460 --> 00:12:32,120 strength, and a minor shakeout which offers a very reliable opportunity. 210 00:12:32,580 --> 00:12:36,520 The structure continues with its genuine development and produces the real 211 00:12:36,520 --> 00:12:37,520 bullish breakout. 212 00:12:37,770 --> 00:12:39,110 There is something interesting here. 213 00:12:39,450 --> 00:12:44,290 Could the BUEC be that behavior that I have marked in the image? Or by 214 00:12:44,590 --> 00:12:49,230 is it more logical to think that the true BUEC corresponds to the last 215 00:12:49,570 --> 00:12:50,910 Well, we don't really care. 216 00:12:51,450 --> 00:12:55,410 This has more to do with labeling than with trading, so we shouldn't focus too 217 00:12:55,410 --> 00:12:56,369 much on this. 218 00:12:56,370 --> 00:13:00,410 My point of view is that, based on the concept that we looked at about the 219 00:13:00,410 --> 00:13:04,610 proportionality of movements, it seems more likely that the last movement is 220 00:13:04,610 --> 00:13:07,960 BUEC. since the previous one seems a little out of proportion. 221 00:13:08,700 --> 00:13:13,600 If you look carefully, the minor BUEC, the one that I have marked with an 222 00:13:13,780 --> 00:13:17,340 corresponds to the minor structure that develops within the range during Phase 223 00:13:17,340 --> 00:13:22,760 D. For this reason, it also seems more logical to me to identify this small 224 00:13:22,760 --> 00:13:27,640 as the test after the breakout of the intermediate structure and the larger 225 00:13:27,640 --> 00:13:30,460 as the test after the breakout of the entire structure. 226 00:13:31,240 --> 00:13:35,500 Going back to the major test after the breakout, we see that it does not 227 00:13:35,500 --> 00:13:38,460 actually develop said test on the broken resistance level. 228 00:13:38,680 --> 00:13:42,060 And this broken resistance level is actually our next trading zone. 229 00:13:42,740 --> 00:13:46,440 The fact that the price doesn't manage to go down to it is not something 230 00:13:46,440 --> 00:13:50,160 negative. In fact, it is a sign that denotes underlying strength. 231 00:13:50,640 --> 00:13:54,200 Do you recall how we should interpret patterns that are not capable of 232 00:13:54,200 --> 00:13:56,420 developing a false breakout at the edges of the range? 233 00:13:57,070 --> 00:14:00,890 We said that basically they represented strength in the opposite direction since 234 00:14:00,890 --> 00:14:04,330 the participants did not have the ability to send the price to those 235 00:14:04,730 --> 00:14:06,750 This is exactly what is happening here. 236 00:14:07,150 --> 00:14:10,610 The trading level on which we are going to look for the test after a bullish 237 00:14:10,610 --> 00:14:15,310 breakout of the entire structure is the resistance level, or CREAK as it is 238 00:14:15,310 --> 00:14:16,310 known in the methodology. 239 00:14:16,930 --> 00:14:21,070 But we know that this can happen, and that whether the market develops said 240 00:14:21,070 --> 00:14:24,530 a little higher or lower falls completely within the expected scenario. 241 00:14:25,200 --> 00:14:29,400 hence the importance of being somewhat flexible in our expectations of how the 242 00:14:29,400 --> 00:14:30,400 market will behave. 243 00:14:30,880 --> 00:14:34,920 In this case, the fact that the price has stayed above said level actually 244 00:14:34,920 --> 00:14:36,680 denotes a greater underlying strength. 245 00:14:37,180 --> 00:14:41,960 The agents involved, for whatever reason, have agreed at an aggregate 246 00:14:41,960 --> 00:14:45,940 the price will not go down to any lower trading levels, and that is why the 247 00:14:45,940 --> 00:14:48,440 bullish reversal has been generated right in that area. 248 00:14:49,060 --> 00:14:52,880 This zone has not appeared by chance either. It has been generated with a new 249 00:14:52,880 --> 00:14:53,880 sideways movement. 250 00:14:54,110 --> 00:14:58,130 which offers us a trading level below its lows since we can expect there to be 251 00:14:58,130 --> 00:15:02,710 some liquidity located there a certain number of orders pending execution and a 252 00:15:02,710 --> 00:15:06,730 false breakout at that zone represents another very good opportunity to enter 253 00:15:06,730 --> 00:15:12,190 the market long finally once out of the range we already know what the context 254 00:15:12,190 --> 00:15:16,410 is and what we should only be looking for the trading zones here will be 255 00:15:16,410 --> 00:15:20,580 generated as the market develops It is simply a matter of monitoring the asset 256 00:15:20,580 --> 00:15:24,100 and waiting for a pivot to be generated that is likely to create a liquidity 257 00:15:24,100 --> 00:15:26,360 zone and then wait for a shakeout there. 258 00:15:27,080 --> 00:15:31,780 Here, we see some examples of what we are looking for. A market in an uptrend, 259 00:15:31,860 --> 00:15:35,880 which develops a pause and a search for liquidity occurs at said levels before 260 00:15:35,880 --> 00:15:37,480 generating a new upward momentum. 261 00:15:38,220 --> 00:15:42,440 The shakeouts that occur during this trend phase were called ordinary 262 00:15:42,440 --> 00:15:43,440 by Richard Wyckoff. 263 00:15:43,640 --> 00:15:46,040 This doesn't have any type of special implication. 264 00:15:46,620 --> 00:15:49,260 they are simply springs in favor of an upward trend movement. 265 00:15:49,940 --> 00:15:53,840 You may have noticed that this is the same context as the one we saw at the 266 00:15:53,840 --> 00:15:57,340 beginning of the example, where we presented the first trading zone with 267 00:15:57,340 --> 00:16:01,480 reversal movement concept and also that of the second trading zone, where we 268 00:16:01,480 --> 00:16:04,920 discussed the possibility of searching for trades with fast accumulation and 269 00:16:04,920 --> 00:16:05,920 distribution patterns. 270 00:16:06,300 --> 00:16:10,320 As you can see, we have started with that context and ended with it. 271 00:16:10,720 --> 00:16:15,080 We started with a trend context and ended with the same concept, only in 272 00:16:15,080 --> 00:16:16,360 case in the opposite direction. 273 00:16:17,040 --> 00:16:20,880 We waited for the creation of the trading level with a first arrival and 274 00:16:20,880 --> 00:16:25,140 reversal of the price, before then looking for one of the suggested 275 00:16:25,140 --> 00:16:29,620 work with, the double bottom, the pullback, or the trap, which we already 276 00:16:29,620 --> 00:16:30,780 refers to our shakeout. 277 00:16:31,080 --> 00:16:35,480 You can use any of these fast patterns, but my recommendation will always be to 278 00:16:35,480 --> 00:16:37,660 wait for the trap, and we already know why. 279 00:16:38,340 --> 00:16:42,540 This segment of the market is very broad and covers the entire trend movement. 280 00:16:42,860 --> 00:16:46,740 Therefore, if there is a strong trend, it can provide us with multiple 281 00:16:46,740 --> 00:16:48,540 opportunities throughout its development. 282 00:16:49,360 --> 00:16:52,980 Here we can see the seven trading zones that we have identified throughout the 283 00:16:52,980 --> 00:16:57,180 development of the example, from before the range began to develop until the 284 00:16:57,180 --> 00:16:58,440 trade in favor of the trend. 285 00:16:59,280 --> 00:17:02,400 Obviously, you don't have to trade each and every one of the zones. 286 00:17:02,970 --> 00:17:07,210 Over time, you will adapt your profile to trade only those that offer you the 287 00:17:07,210 --> 00:17:08,210 greatest confidence. 288 00:17:08,770 --> 00:17:13,190 And in this chart, we can see exactly the same thing, but adapted to an 289 00:17:13,190 --> 00:17:14,410 of a distribution pattern. 290 00:17:14,790 --> 00:17:18,630 We won't dwell too long on this, and we'll just do a quick run -through of 291 00:17:18,630 --> 00:17:22,210 of the zones, as it's essentially the same as the accumulation example above. 292 00:17:22,990 --> 00:17:26,670 I just want to say in the first part of the chart, we would be looking for short 293 00:17:26,670 --> 00:17:28,910 positions, because the preceding trend is bullish. 294 00:17:29,530 --> 00:17:33,710 Trading opportunity number 1 can be identified thanks to the concept of 295 00:17:33,710 --> 00:17:37,910 reversal when a bullish candlestick closes above the last SOW bar. 296 00:17:38,710 --> 00:17:43,650 Trading zone number 2 is a fast pullback pattern since, if you look closely, you 297 00:17:43,650 --> 00:17:46,830 will see that it fails to plunge below the lows of the last pivot. 298 00:17:47,690 --> 00:17:52,250 Trading zone number 3 is located in the demand zone, in the lower part of the 299 00:17:52,250 --> 00:17:56,090 structure, where we could expect the appearance of a bearish false breakout 300 00:17:56,090 --> 00:17:57,090 minor spring. 301 00:17:57,550 --> 00:18:02,350 Trading zone number four is finally the appearance of the phase C test event, in 302 00:18:02,350 --> 00:18:06,890 this case in the form of UTAD, which reverses the market sentiment and would 303 00:18:06,890 --> 00:18:10,270 suggest that we only look to go short from that moment onwards. 304 00:18:11,170 --> 00:18:15,170 Trading zone number five is a minor false breakout during the downtrend move 305 00:18:15,170 --> 00:18:16,170 within the range. 306 00:18:16,290 --> 00:18:20,150 Remember that this opportunity will not always appear since it will be directly 307 00:18:20,150 --> 00:18:23,250 conditioned by the width of the range and the momentum of the market. 308 00:18:23,850 --> 00:18:28,670 At trading zone number six, The broken support zone offers us two opportunities 309 00:18:28,670 --> 00:18:30,490 in that break and retest movement. 310 00:18:30,950 --> 00:18:35,470 And from there, once the trend is started, we find ourselves in trading 311 00:18:35,470 --> 00:18:39,970 number seven, where we should look to enter expecting a continuation of the 312 00:18:39,970 --> 00:18:40,970 bearish imbalance.