Phase b

It represents the construction of cause (range).
Phase B can be a challenge because it is composed by successive secondary test at both limits of the range.
  • The key element in Phase B is time.
  • Ideally Phase B should be longer than the Phase A.
Important:
The key here is to pay attention to the effort (volume) vs result (price action) at the upper and lower limits of the accumulation or distribution process.

Useful Information:

  • The shorter the time, price will spend in Phase B, the more we will approach to fast reversals.
  • In more deep explanation, two keys in Phase B are volume and price analysis carefully at both limits of the range.
  • And the time duration of Phase B should be longer than Phase A as a guideline. However, not a rule, because the longer the cause, the longer the effect.
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