May 24 • 💪try yourself
Exercise 1: Learning to Identify Distributions & Retracements in an Uptrend
📈🔥 Exercise Objective: Learning to Identify Distributions & Retracements in an Uptrend 🔥📈
The purpose of this exercise is to train your eyes 👀 to recognize what a retracement looks like inside an uptrend and what a distribution looks like within that same trend.
As you already know, an uptrend is simply the general direction of price moving higher over time ⬆️📊
In ProRealTime, this often appears as a sequence of predominantly green candlesticks 🟢🟢🟢 pushing upward.
Inside that upward movement:
🚀 Distribution = The larger, stronger expansion in price moving WITH the trend (upward).
🔻 Retracement = The temporary pullback AGAINST the trend, often appearing as a smaller sequence of red candles moving downward 🔴🔴
What I need you to begin noticing is this:
⚠️ Markets rarely move in a perfectly straight line.
Instead, they tend to move rhythmically…
📈 Long Distribution
📉 Shorter Retracement
📈 Long Distribution
📉 Shorter Retracement
📈 Long Distribution
📉 Shorter Retracement
…repeat endlessly 🔁
Over time, you should begin observing that in healthy uptrends:
✅ Distributions tend to be larger in size
✅ Distributions often contain more momentum
✅ Retracements tend to be smaller in range
✅ Retracements temporarily pull back before continuation
The larger move advances the trend.
The smaller move pauses the trend.
Then price often continues.
This behavior repeats over and over and over again 🔄
You’ll see it on:
⏱️ 15 Second Charts
🕐 1 Minute Charts
🕔 5 Minute Charts
🕒 Hourly Charts
📅 Daily Charts
🌎 Almost every market
The market is fractal 🧩
Meaning:
The same behaviors appear repeatedly across different timeframes.
The goal of this exercise is NOT prediction ❌🔮
The goal is:
👀 Pattern Recognition
🧠 Building familiarity
📚 Developing market intuition
🎯 Training your brain to see rhythm, structure, and probability instead of random candles
Train your eyes long enough…
…and eventually you’ll stop seeing:
🕯️ Random Candles
You’ll start seeing:
📊 Structure
🎵 Rhythm
⚖️ Probability
🧩 Context
🚦Momentum
👇 Assignment (Required)
Post Loom Video/Screenshot in the comments showing:
1️⃣ One example of a Distribution 📈
2️⃣ The Retracement that followed 📉
3️⃣ A short explanation of why the retracement was smaller in degree than the distribution before it ✍️
⭐ Bonus Question:
❓After doing this exercise, do you believe the market moves more randomly… or more rhythmically than you previously thought?
Drop your answer below 👇
Roger Wilco if complete ✅
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Exercise 1: Learning to Identify Distributions & Retracements in an Uptrend
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