When you have a certain uptrend correct, so this is very obvious that you are seeing the things that I’m drawing right now right, yeah okay, so this is a very clear uptrend and especially once you’ve seen that previously, if there’s a few times, three to four times that it touch before, then this line is very very important.
So what happened is that do you think it is not going to just go up indefinitely forever right?
So someday you will have to start going sideways, or some days you have to go down right?
So the point to look for is when it starts going out of this, that is the first signs telling you that there is a possibility that we are going into a distribution stage right?
So the thing about the distribution stage, sometimes it can be a long time, okay, sometimes it can be just very quickly and then it starts to go down there after okay.
So how do we usually identify from a distribution stage to a declining stage okay, is you have to identify where are some of the key support horizontal support being formed.
Can you roughly see if we see things like that? Then once it starts to go lower okay, that could potentially be the start of the subsequent line, yes, and once you have the first point here, you have a second point here, that’s when you start to draw a line to check it already.
So the same thing will happen again as it goes lower and lower, it will come to a point where you have to come to here, go into a certain sideways key resistance then you have to break out before the whole trend starts over again.
So do you roughly get my point on this okay? You will realize that you will go through an uptrend distribution strength, downtrend and then accumulation trend again.
However, the thing is sometimes the distance could vary, so this is something that you’ve got to take note of. Honestly, that is something you can only get experience over time.
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