In a trending market, when you really grasp the essence of P-Shape and b-Shape, your ability to identify key levels sharpens significantly – and your win rate improves noticeably.
These aren’t just shapes on a candlestick chart; they reflect who’s controlling the market and what’s really happening behind the trading volume.
📈 P-Shape – Shorts Getting Trapped, Price Continues to Trend
P-Shape usually appears after a strong sell-off. The narrow bottom and wide top indicate:
• Shorts are getting 'trapped' as prices fail to continue dropping.
• Buying pressure is gradually gaining the upper hand.
• Prices are being accepted at higher levels (value acceptance).
In this context, experienced traders will:
• Look for continuation points in the upward trend.
• Build key levels around the newly formed value area.
• Favor momentum strategies instead of trying to catch a top.
👉 The market is signaling that the bears have lost control.
📊 b-Shape – Buyers Liquidating Positions, Bearish Pressure Unfolding
Conversely, b-Shape often emerges after a rally. The structure widening at the bottom indicates:
• Buyers are distributing and liquidating their positions.
• Weak hands are being shaken out.
• A distribution shift is taking place.
Important key levels often form where significant volume shifts occur. This is a zone likely leading to:
• Continuation of the bearish trend
or
• A reversal setup if additional confirmation comes in.
👉 When you spot a b-Shape in a weakening trend, you should be cautious with long trades.
These aren’t just shapes on a candlestick chart; they reflect who’s controlling the market and what’s really happening behind the trading volume.
📈 P-Shape – Shorts Getting Trapped, Price Continues to Trend
P-Shape usually appears after a strong sell-off. The narrow bottom and wide top indicate:
• Shorts are getting 'trapped' as prices fail to continue dropping.
• Buying pressure is gradually gaining the upper hand.
• Prices are being accepted at higher levels (value acceptance).
In this context, experienced traders will:
• Look for continuation points in the upward trend.
• Build key levels around the newly formed value area.
• Favor momentum strategies instead of trying to catch a top.
👉 The market is signaling that the bears have lost control.
📊 b-Shape – Buyers Liquidating Positions, Bearish Pressure Unfolding
Conversely, b-Shape often emerges after a rally. The structure widening at the bottom indicates:
• Buyers are distributing and liquidating their positions.
• Weak hands are being shaken out.
• A distribution shift is taking place.
Important key levels often form where significant volume shifts occur. This is a zone likely leading to:
• Continuation of the bearish trend
or
• A reversal setup if additional confirmation comes in.
👉 When you spot a b-Shape in a weakening trend, you should be cautious with long trades.