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Market Phase Analysis

figure 4.8 V‐Bottom Formation as Accumulation on the 4‐Hour USDCAD Chart.

Source: MetaTrader 4

In Figure 4.8 we observe a very rapid accumulation phase in a V bottom

formation, which was preceded by an intrinsically bearish head and shoulders

distribution phase on the 4‐hour USDCAD chart. Of all the reversal patterns, the

V‐type reversals are the hardest to forecast and anticipate due to their rapid ac-

tion. They are normally only identified in hindsight.

In Figure 4.9 we observe a symmetrical triangle as continuation within a trend

phase. Although symmetrical triangles are intrinsically neutral, the existence

figure  4.9 Symmetrical Triangle as Continuation in a Trend Phase on the EURUSD

Chart.

Source: MetaTrader 4