#Volume #Price Action (VPA) 101

Five phases of VPA are as follows:

- Accumulation Phase

- Buying Climax

- Testing

- Distribution Phase

- Selling Climax

(1/n) #Accumulation phase

Before the insiders can begin to do anything, they need to make sure they have enough inventory, to meet demand.

Once accumulation has begun, the price action follows this typical pattern, where the market is repeatedly moved higher and lower.

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#Gaps in #trading 101

Gap is essentially a change in prices levels between the close and the open of two consecutive days.

Gaps can be classified as under:
1. Common Gaps
2. Breakaway Gaps
3. Runaway Gaps
4. Exhaustion Gaps

(1/n) #Gaps in #trading 101

Common Gaps

These gaps are common & usually get filled quickly. "Getting filled" means the price action at a later time usually retraces at the least to the last day before the gap. The trading volume on such days is generally low / below average.

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