Skillsfirst Level 5 Diploma in Financial Trading (RQF) - Module 4 - Technical Analysis
Skillsfirst Level 5 Diploma in Financial Trading (RQF) - Module 5 - Psychology
Skillsfirst Level 5 Diploma in Financial Trading (RQF) - Module 6 - Risk and Money Management
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VACUUMS AND DISTRIBUTIONS

The last use of vacuums is the area between major distributions. Therefore, it is critical to know what distributions to build.

How do you know what ones are relevant?

Large distributions are built by merging at least the previous two major trends as shown on a daily chart. You can build even bigger ones on weekly’s and monthly’s but only if we are trending into an area we have not been to for years.

This means that normally you have a maximum of four profiles to build: The two major trends, the five day and the one day. Let us look at how this happens over the next few pages.

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