{"product_id":"stcov323flbr","title":"Stocks \u0026 Commodities V. 32:2 (32-37): Flatliners Breaking Out by Dirk Vandycke","description":"Flatliners Breaking Out by Dirk Vandycke\u003cbr\u003e\u003cbr\u003eAfter The Storm\u003cbr\u003e\u003cbr\u003eWe cant predict the future, but we can get telltale information from charts. Heres\none possible setup that gives you an idea about price direction.\u003cbr\u003e\u003cbr\u003eAs the markets evolve and lead us to believe they are different today than in the\npast, it can be like a breath of fresh air to read one of the classic books on the\nfinancial markets. One book I find useful is Secrets For Profiting In Bull And Bear Markets by Stan Weinstein.\nAlthough this book was published\nin 1988, I feel it is a must-read for\nany self-respecting investor or\ntrader. One of the reasons I like it\nis that it throws out all complexity\nin looking at the markets. It\neven dares to zoom out, looking\nat longer-term charts and goals \nsomething the newer generation of\ntraders seem to have forgotten in\ntodays never-ending arms race for\never more and faster information.\nThat quest for speed at least partly\nsuggests a susceptibility to some\nillusionary control.\u003cbr\u003e\u003cbr\u003eThe setup I will discuss takes\nWeinsteins phase model and\nsuperimposes it on my quantified\nsystem dynamics model. My\nsystem dynamics model states\nthat financial markets, like any\ndynamic system, are subject to\ncycles, gravity, inertia, power laws\nand, most important for the setup\nin this article, capacity.\u003cbr\u003e\u003cbr\u003eThe phase model\u003cbr\u003e\u003cbr\u003eEvery equity, at various times,\ngoes through one of four phases.\nThe first phase, which Weinstein\nrefers to as the basing area, is\nmore commonly known as the\naccumulation phase. This is where\nthe public quickly loses interest in\na stock or market. In this phase,\nmoney ebbs, resulting in lackluster\nactivity and shrinking volatility\nand with it, more often than not,\nthe waning of liquidity. It is the\ninstitutional long-term investors\nwho accumulate stock during this\nphase, since they are willing to sit\nthings out, often by necessity. They\ntake shares out of the hands of the\ncrowd who throw in the towel and\nwant out.\u003cbr\u003e\u003cbr\u003eIn the second phase, called the\nadvancing phase or uptrend, the\ncrowd comes back. This may be\ninitiated by marketing efforts of\nthe accumulators from the previous\nphase. In this phase, youll\nsee higher lows and higher highs.\nWhen enough money has come\ninto the market, theres almost nobody left holding cash to pay\nhigher prices. Thats where the heavy\ndistribution of stock from the small\ngroup into the hands of the crowd,\nwhich started the uptrend, comes to\nan end. Youll see higher volatility\nas the last ones are trying to get in\non the action and the distributors\nsupport their own prices as they sell\ntheir positions. This is called the top\narea or distribution end.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133916082545,"sku":"V32C02_714VAND","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_d4855b63-df03-4f94-afd1-0e71417386d2.jpg?v=1739657053","url":"https:\/\/shop.traders.com\/products\/stcov323flbr","provider":"Stocks \u0026 Commodities","version":"1.0","type":"link"}