We will begin the study of horizontal structure first, both in the accumulation and in the distribution process.
Accumulation Process:
Beyond the 7 logical events and their corresponding phases, there are two important things to pay attention too.
One is the creek which is the high produced by automatic rally after the selling climax. It's important because it is the level we want to see price breaks out of the expression, JAC (jump across the creek) is precisely that.
The other thing is to pay attention is the presence of CHOCH (change of character), many times where the market transition from trending to ranging or vice versa.
1st CHOCH The 1st CHOCH (change of character) is when market goes from downtrend to ranging (Reaction & Secondary Test).
2nd CHOCH The 2nd CHOCH (change of character) occurs in the Phase C and Phase D, when market goes from ranging to trending (In accumulation sideways to uptrend).