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When should we continue to prioritize
the current context?

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

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

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only consider trading almost exclusively
in that direction.

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

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

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

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from the last cause has already run its
course.

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Quantifying the effect that the
previously established cause will have

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unanswerable question of the law of
cause and effect.

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

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control of the market was a long time
ago?

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

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

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

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For this, common sense usually comes in
handy.

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Let's think.

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

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

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might overturn the current one?

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

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

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

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prevailed up until now.

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

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

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to have a greater capacity over the
others.

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

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no.

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

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

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short duration.

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

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

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accumulation. Therefore, the analyst
should continue to prioritize the

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

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

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But up to what point?

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

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development. and throw up the
possibility that control has changed

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

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

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

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

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settle into a more neutral position.

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

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

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

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we have carried with us.

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

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

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at least protect it to avoid potential
losses.