OH!! CANADA!! CONGRATS ON THE HOCKEY GAME IT WAS EPIC!!
Before
Does this look like distribution to you? Now you can’t deny the accumulation from Thursday. But in larger picture, can this be distribution?
This also shows some kind of distribution formation and shorter term, an accumulation.
A more distinct accumulation in the short term but the range of distribution is still evident here.
An accumulation is building here for the short term play. Nothing to suggest what is building in the longer term. So don’t be lulled to carry a longer term bias and not play the short term.
Confirmation of the short term play. The levels which will be hit are marked. Can see this going higher to test the previous high because 30min, 60min are helping.
The accumulation pattern here is quite clear.
Result
The short term accumulation play works out.
Hitting all our targets.
This is why you have to understand the short term and longer term. If you formulated a bearish bias and had entered based on the 60/120/240min charts. You would be suffering some pain right now.
Your short term must not be ignored. Although the long term is indicating a short bias. You must still play the short term because that is the incoming.
Many traders look at their charts and create a bias based on daily/weekly charts. They enter the trade and ignore the intraday charts which may drop them a few more points before it moves in the direction they desire. What happens next is this, they suffer intraday draw, and get scared away from their trade and take the loss. Come the end of the day, the draw is not significant, the daily trend is maintained but the clueless trader already took the loss.
One of the main reasons they felt the heat early, they really didn’t understand the short term trend vs. the longer term trend. They don’t know how to add up the details of the charts and base their play in the correct timeframe. The draw they felt was completely unexpected and then they made their decision based on the daily candles and so the wicking of the daily candle put in major fear.
What is that? You don’t see the distribution you say?
Yee of little faith…
Been since Feb 14.