Market Phase Analysis
In a similar fashion, we see the symmetrical triangle, in Figure 4.32, adopting
three distinct roles, representing accumulation at the bottom of the uptrending
channel, continuation in between the top and bottom of the channel, and distri-
bution at the top of the uptrending channel. Had the pattern been an inverted
head and shoulders pattern instead, the probability of a reversal at the bottom
of the channel or a continuation in the middle of it would be potentially greater.
Resistive and supportive confluences, comprising other overlay barriers such as
Fibonacci levels and so on, help to yield more reliable forecasts of potential price
reaction levels in the market.figure 4.31 Using Cycles to Determine Market Phase.figure 4.32 Using Price Channels to Determine Market Phase.