Prolonged contraction of ranges and volatility brings strong expansion after. But since contraction can last for very long (2 months) the key is identifying those little clues that suggest expansion this time really might happen.
Weak-strong ignition.
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Weak-strong ignition.
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Day2 liquidity increase is something I track closely. SMMT had two days ago significant increase in d2 liquidity and squeeze unlike majority of past tickers for entire month. Disconnect of theme. Significant factor.
Warning 1.
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Warning 1.
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Type4 patterns increased. They went from non-existent for entire 3 weeks to all sudden being present on $SMMT two days ago. Type4s never show up randomly. They are mostly present in early stages of strong cycle, they are liquidity hunting patterns for MMs.
Warning 2.
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Warning 2.
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Sustained frontside for two days on few recent tickers such as SHPH. Not strong frontside but good enough to provide hint on slight uptick on flows. That was December 5 to 6. Two days prior to ignition. Track this condition.
Warning 3.
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Warning 3.
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Increase in multiday runners, tickers that don't fade quikcly on d1 had uptick over past several days (Dec 1 to 7 vs Nov 15 to Dec 1). MDR activity is important to track to define the sustainability of demand flows. No MDRs no strong cycle.
Warning 4.
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Warning 4.
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Fbo reclaims. When ticker has multiple fake breakouts and they reclaim quite fast it's uptick in flows. Why? Because it rarely happens in weak cycle. This is strong cycle behavior. Besides SHPH some other tickers were doing that prior to Dec 8.
Warning 5.
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Warning 5.
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This is how you measure potential for cycle flows shifting in front of your eyes before they actually do.
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