action breaks the range in the direction of the expected move. Have a look at this image: Above you see the H4 chart of the USD/CHF Forex pair for May July, 2016. Richard Wyckoff emphasizes three laws which are a natural cause of the Market Cycle.
Download the short printable PDF version summarizing the key points of this lesson. The downside break through the green bullish trend line is a signal that the Markup stage is probably completed and the new Distribution stage is on its way. Notice the Volume bar in the green circle. In other words, the process of accumulation is illustrated by a ranging price structure on the chart. Also, you should keep an eye on volume for additional clues that confirm that your decision is correct. After.67 increase the price action starts to range. Notice on the chart that the first two bottoms ( based on closing prices ) are slightly increasing. However, this is not all. Stay in the trade until the price action and/or the volume indicator give you an opposite signal.