Two examples of distributions

Two examples of distributions

All distributions (the market top-ranges where stock/coins/contracts change hands, from professional pockets to public pockets) strat with FOMO buying. Then scenarios develop an endless number of variations. However, the principles remain the same.

On the left – penny stock market, daily TF.
We have there:
2/ ND
3/ ND
4/ Final SLKT
5/ Bearish change, Bulls Trapped.

On the right side, we have ETHUSD, 15m, yesterdays’ action.
4/ ND
5/ Bearish Change, Supply Pressure.

As you can see, move number 5 appears in a very fast way, without enough time to think and join bears.
Which chart provides better odds to establish shorts?

As for me, left.
Final SLKT above round number 3.0 with the next two down-bars (confirmations of SLKT) gives an opportunity to short with placing SL above SLKT.

Right Chart with distribution range above 130 doesn’t provide such setup. Or where would you like to short ETH?

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To build success in any business, you should rely on things that really work.

In Chart Reading Method, they are three: The Law of Inequality, The Law of Supply & Demand, The Law of Effort & Result.

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