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Proportionality of Movements Any issue
that involves a certain amount of

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

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This aspect of proportionality is one
such issue.

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

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

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

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

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

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

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

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

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the movements in order to validate
these.

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

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movements.

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

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anatomy of a correction with respect to
its previous momentum.

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

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looking for the test after the breakout
movement.

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Let's look at the chart in the example.

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

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and accepted as valid?

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

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So, this might well be the case.

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

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

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market.

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

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distance traveled seem to be greater.

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Let's look in particular at the
corrective movement.

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

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

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travels a greater horizontal and
vertical distance.

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

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time.

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Meanwhile, the potential test after
bullish break travels very little

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both in price and in time.

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

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

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

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especially in assets that denote a lot
of underlying strength.

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

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take a longer time to develop this type
of behavior.

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

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

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initiating the subsequent upward
imbalance.

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This example is especially interesting
as it almost exactly matches the

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horizontal and vertical distance
traveled.

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

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behavior in which these movements are
respected.

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I'll leave this analysis and
investigation to you.

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

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

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concept may be represented in a
different way.

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

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

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terms of time.

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This would also indicate a certain
harmonious behavior.

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

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

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horizontal distance.

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

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

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assessments and analysis.

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

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the analysis.

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

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most likely is not, so hold out.

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This is the key.

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

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

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don't enter the market early in this
context.

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

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after the breakout.

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

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

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

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previous movements.