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IMPORTANT POINTS
1. Three important phenomena in stock market operations are:
a. accumulation with a terminal shake-out
b. a sharp rally out of an oversold position without apparent evidence of accumulation
c. accumulation with a perfect apex and a perfect springboard.
2. A terminal shake-out is a rapid downward movement occurring at or near the end of a period of preparation.
3. A thrust movement is the opposite of a shake-out; it is a sharp run -up out of an area of distribution.
4. Analysis of the vertical chart may show that the figure chart formation is a trading range and not a period of accumulation.