Distributions .1.

Good Luck and good trading to everyone in 2011.
I'm going to start this year looking at the market ,in it's component parts.
The idear is to see when we are in a distribution phase , where the bean machine is holding court , and when the market changes its character and morphs into a vertical phase of development.The main aim is to learn to identify the condition of the market.
Chart one is the Australian dollar , 60 minutes .
There are four charts in this series below. Click on each chart to get a closer look.



this second chart shows 2 vertical phases and a distribution.( highlighted.)




IN chart 3 below we have identified a begining, where the market moved out of a distribution phase onto a vertical phase. If we start at the beginning ,we now have something to work with. And from the beginning I have added the Fibonacci retracement levels.





This last chart shows a new distribution ( blue ) developing inside the larger distribution.green. You can see that the vertical move came from the center of the previous distribution , the value price. Often when a distribution is comepete , buyers and sellers have reached a balance, the next phase is price discovery , or a vertical phase .