: Price stays consistently above rising moving averages (e.g., 20-day and 50-day EMA). Action : Buy pullbacks and breakouts on lower timeframes. Stage 3: Distribution (The Top)
So, how does a trader apply this practically? Shannon is famous for a few specific strategies laid out in the book: : Price stays consistently above rising moving averages (e
– Sideways movement after a downtrend; big players build positions. Stage 2: Markup : Price stays consistently above rising moving averages (e
During this phase, the asset bottoms out after a previous downtrend. The price moves sideways as institutional buyers quietly build positions. Volume typically dries up, and the moving averages begin to flatten. Stage 2: Advancing (Uptrend) : Price stays consistently above rising moving averages (e