markets which are driven by just two. Fear and greed. That's it.

Create
enough fear
and people will sell. Create enough greed and people will buy. It's all very
simple
and logical, and to help them, the insiders have the ultimate weapon at their
disposal
– the media.
This cycle of accumulation and distribution is then repeated endlessly, and
across all
the time frames. Some may be major moves, and others minor, but they
happen
every day and in every market.
Testing Supply
One of the biggest problems the insiders face when mounting any campaign
is they
can never be sure that all the selling has been absorbed, following an
accumulation
phase. The worst thing that could happen is they begin to move the market
higher,
only to be hit by waves of selling, a of sel which would drive the market
lower,
undoing all the hard work of shaking the sellers out of the market. How do
the
insiders overcome this problem? And the answer is that just as in any other
market,
they test!
Again, this is no different to launching a marketing campaign to sell a
warehouse
full of goods. Not only do the items have to be correctly priced, but also that
the
market is receptive, primed and ready if you like. Therefore a small test
marketing
campaign is used to confirm if we have the right product at the right price,
and with
the right marketing message to sell in volume.
The insiders also want to test, and once they have completed the
accumulation
phase, they prepare to move the market higher to begin the selling process. At
this
stage, they are generally moving back into price regions which have only
recently
seen heavy selling, so they execute a test to gauge market reaction and check
that all
the selling has been absorbed in the accumulation phase. The test is as shown
in the
schematic below:
Fig 5.12 is a schematic to explain this principle which is common sense when
we
think about it logica