from a tree, or as we do in Italy, harvesting the olives!

The tree has to be

shaken
repeatedly in order for all the crop to fall. Some of the crop is more firmly
attached
and takes effort to release. This is the same in the financial markets. Some
holders
will refuse to sell, despite this constant whipsaw action, but eventually they
give up
after several 'false dawns', generally on the point when the campaign is
almost over,
with the insiders preparing to take the market higher with fully stocked
warehouses.
So the campaign comes to an end. It is all over, until the next time!
This is repeated over and over again, in all time frames and in all markets. If
we take
the cause and effect rule of Wyckoff, the above price action could be a
'secondary'
phase in a much longer term cycle, which is something I cover in more detail
once
we start to look at multiple time frames.
Everything, as Einstein said, is relative.
If we took a 50 year chart of an instrument, there would be hundreds of
accumulation phases within the 50 year trend. By contrast an accumulation
phase in
a currency pair, might last a few hours, or perhaps only a few days.
And the reason for this difference is to do with the nature and structure of
market.
The equity market is a very different market to bonds and commodities. In
equities
for example, this phase might last days, weeks or months, and I cover this in
detail
when we look at the characteristics of each market and its internal and
external
influences, which create the nuances for us as VPA traders.
The key point is this. Just recognise the price action and associated volume
for
what it is. This is the insiders manipulating the market in preparation for an
extended price move higher. It may be a small move (cause and effect) based
on a
short time period, or a more significant move based on a longer phase. And if
you
think that perhaps this is a fantasy, let me just quote from Richard Ney again,
and
this time from his second book, The Wall Street Gang.
“On November 22, 1963, the day President Kennedy was
assassinated, specialists
used the alibi provided by the tragedy to clean out their
books down to wholesale
price levels. After they had accumulated large inventories of
stock, they closed shop
for the day and walked off the floor. This prevented public
buy orders from being
executed at the day's lows. The specialist in Telephone, for
example, dropped his
stock on November 22 from $138 to $130. He opened it on
the 25th at $140!
Sacrificing accuracy for expediency, he admitted to making
$25,000 for his trading
account.