How to analyze and trade an accumulation?

Here we leave you an example of what a practically perfect accumulation break would be.

The first thing we detect is the break to the upside of the pattern after the presentation of results. The move comes on a lot of volume, indicating that this is unlikely to be a false breakout. In addition, we have a buy signal from the BOT.

Next we point out the first pullback, the entry zone for those more aggressive traders who do not wait for confirmation. There are people who trade this way to avoid missing out on quick moves caused by FOMO and have no confirmation.

Then we see a new bullish candle with enough volume, which confirms the initial break. After that movement, we can detect the zone of the second pullback (entry point for the most conservative traders).

Finally we see that main bullish momentum which is a rise of 20% in just a few days.

I hope that the analysis will help you to understand future breaks.

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