This schematic shows one possible order of events inside a trading range, not a path price is obliged to reproduce. Phases A–E place the evidence in time: the former move is stopped, a cause is built, a decisive test occurs, an escape is attempted, and a trend is observed only afterwards. Real boundaries can move when new evidence is confirmed. Each label therefore belongs with its particular range and its closed bar rather than with a visually similar shape in isolation.
The event sections below explain what each mark means, how it may appear on a chart and what the scanner actually checks. The educational picture contains no forecast. When the parent range is invalidated or verified candles are unavailable, the scanner should expose that uncertainty instead of completing a convenient sequence. The live section lists only confirmed matches with this particular variant, while the general totals cover the wider market.
Events in the schematic
PSY
Preliminary supply appears after an advance when unusually heavy trading no longer produces equally convincing progress. It can be the first sign of selling into strength, but PSY alone does not confirm a top: demand may resume the trend. In the distribution schematic it begins the stopping action and the search for an upper boundary. The scanner compares effort and result on a closed bar, but waits for a buying climax and automatic reaction before treating the range as established. A PSY label is a description of evidence, not a forecast that every rising market must reverse.
BC
A buying climax often looks like a forceful upward run on peak volume that fails to hold its extreme. Late buyers meet substantial supply, and the high becomes a candidate for the upper range boundary. A sustained new high would invalidate that reading. The scanner compares bar spread, volume and closing position, then ties the automatic reaction to the identified climax. If later evidence changes the boundaries, the event and phase history must follow the revised verified structure. A spectacular BC is not sufficient by itself to sell a market; the following tests explain whether supply actually remained dominant.
AR
The automatic move after a climax supplies the opposite edge of the trading range. During accumulation it is a rally from SC that proposes an upper boundary; during distribution it is a reaction from BC that proposes a lower boundary. Its size shows how quickly the other side used the exhaustion of the preceding trend. The scanner ties AR to an already recognised climax and closed bars instead of drawing a range retrospectively from a single high or low. A later boundary revision also changes the interpretation of later phases, so AR should always be read with the range history.
ST
The secondary test brings price back towards a range edge after AR. If the former dominant side has genuinely weakened, the retest often carries less volume and fails to establish a durable new extreme. ST helps separate a stopped trend from a brief pause, but one candle does not complete phase B. The scanner checks location relative to the verified boundary and compares volume only after the bar closes. Each test belongs to a particular range; if that parent range is invalidated, dependent tests must not survive as confirmed events. Repeated tests can still occur before the decisive phase begins.
UTAD
UTAD is a late break above the upper boundary of an already developed distribution range. It draws in breakout buyers, then retreats beneath resistance; a weak subsequent test supports the supply hypothesis. It is optional, which is why the second schematic exists. The scanner checks chronology, closing location and the currently verified boundary using confirmed bars. The UTAD outcome is then observed over the next thirty closed bars: target reached, invalidation or no result. The model must not be applied backwards to make an old high appear prescient, and the pattern is not an automatic short instruction.
Test
The test after a spring or UTAD asks whether sellers or buyers remain near the breached boundary. Price revisits the false-break area; lighter volume and a weaker result for the formerly dominant side support the absorption hypothesis. Strong continuation in the direction of the break argues against it. The scanner links Test to its parent event and compares the original, unrounded volume ratios. Until the confirming bar has closed the mark is only a candidate, and an invalidated parent cannot leave behind a confirmed test. The surrounding range determines that label.
SOW
A sign of weakness appears when supply drives price towards and often through the lower edge of a distribution range. Effort and result should be consistent: a quick dip that recovers is not the same as accepted weakness. In the schematic SOW shifts attention from testing demand towards a possible phase-D exit. The scanner examines a closed bar, the relationship to the verified range and the age of the event. Target achievement or invalidation is then measured over the following thirty closed bars rather than chosen retrospectively. A later boundary move can still cause an honest reclassification.
LPSY
The last point of supply is a rally back towards the former lower boundary after weakness has appeared. If buyers cannot restore price inside the range, supply looks more durable; a strong recovery would invalidate that interpretation. In the schematic LPSY helps distinguish an accepted downward escape from a false break. The scanner links it to SOW and the verified range, waits for a closed bar and does not leave a dependent event confirmed after its parent structure has been cancelled. The historical outcome remains visible, without retrospectively proving an earlier call.
ICE
Breaking the ice describes a move through the support line beneath a distribution range. In the teaching drawing it is a late transition towards phase E, not simply any red candle: price must close below the boundary and show acceptance of the new level. A sharp return inside the range requires the interpretation to be revisited. The scanner waits for development after SOW, uses closed bars and displays phase alongside the event. The educational line in the schematic cannot replace the actual boundary calculated from live verified data, and a picture of a decline is not a trading recommendation.
Phases A–E
| Phase | What to observe |
|---|---|
| A | Stopping the previous trend: preliminary support or supply, climax and AR. |
| B | Building the range and secondary tests of its edges. |
| C | Decisive test: spring/UTAD or a test without the late false break. |
| D | SOS or SOW followed by a check that the escape holds. |
| E | An observed move outside the range; outcomes are measured on closed bars. |
A comparison with the market starts from a live verified range rather than an attempt to force prices into the drawing. The scanner uses closed bars, relative volume and event order; forex volume is a proxy and is labelled separately. It checks phase timeouts, does not preserve dependent events after a parent is cancelled and exposes the age of the last mark. Decisive outcomes are measured over the following thirty closed bars. Matching a few letters is therefore not enough to establish a scenario: boundaries, confirmation and context are required.
How it looks now
Now: 1 in accumulation / 5 in distribution. Snapshot: 1 Oct 2026, 21:12
There is no verified match with this particular variant now. Early-phase ranges remain unnumbered until decisive evidence appears.
Inspect candles and boundaries in the scanner
How it differs from the other variant
Distribution No. 1 contains a late UTAD above the upper boundary, a return below it and a test of supply. In No. 2 the market can proceed towards SOW without that late trap; an earlier phase-B UT is not interchangeable with UTAD. Confirmation depends on closes and event order, so two similar-looking highs may play different roles. Until phase B is complete, assigning a particular number remains premature and the live section should say so.
FAQ
Can one candle identify the schematic number?
No. A verified range, ordered events and closed bars are needed. During phase B a later false break may still change the reading.
Why can the live list be empty?
The scanner may see accumulation or distribution without enough evidence to choose a numbered variant. An empty list means no verified match with this variant, not an inactive market.
Are a spring and UTAD mandatory?
No. They distinguish the No. 1 variants. No. 2 can move towards strength or weakness without the late false break.
Is the illustration a trading signal?
No. It is a teaching sequence. Check actual candles, volume, boundaries, range invalidation and the recorded outcome in the scanner.
How is an event outcome assessed?
A decisive event is followed for the next thirty closed bars. The scanner separates a reached target, invalidation and no conclusive result within that window.