Tru dat.
At market tops weak hands buy, strong hands sell.
I'd amend this by re-phrasing;
At swing high tops, some hands will buy, some will sell. The market has symmetry for both Shorts and Longs.
After entry;
The long position becomes stronger with increasing price and increasing volume.
The long position becomes weaker with increasing price and decreasing volume.
The long position becomes weakest with decreasing price and increasing volume.
The strongest position for the Short is at the end of the Long move, which can be identified as a zone closer to the Left Trend line than the RTL.
The short position becomes stronger with decreasing price and increasing volume.
The short position becomes weaker with decreasing price and decreasing volume.
The short position becomes weakest with increasing price and increasing volume.
The strongest position for the Long is at the end of the Short move, which can be identified as a zone closer to the Left Trend line than the Right Trend line.
A move is composed of three legs. A leg is the Dominant move of price and volume together in a unified direction. The middle leg is the non-Dominant move where price is observed to retrace some of the prior leg's price action. It's characteristic is one of decreasing volume when compared to the prior leg's volume. The third leg is a return to Dominant price and volume direction.
The steeper the RTL per unit of time, the greater the money making velocity. The strongest trades are always orthogonal on a chart.
The exit is what proves the entry.
Up until this point the future is coalescing into the present, the field of possibilities once limitless now diminishes until price can only take the path of least resistance. In this particular example, Resistance is not Buyers vs Sellers for it's always evenly paired, it's the absence of perceived value and a diminishment in the willingness to engage in transactions - this manifests as decreasing volume.
It is at this point the minority take positions for the next profit taking segment.
