Automatic Rally (AR)
Volume Price Analysis glossary · Wyckoff'S Laws & The Four Market Phases
Definition
The first reactive bounce off a Selling Climax low; defines the upper boundary of a developing accumulation range.
Automatic Rally (AR) in plain English
After a violent price crash exhausts itself (a Selling Climax — the panic-selling low), price snaps back up sharply almost on its own, like a rubber band released after being stretched too far. That first bounce is the Automatic Rally, and it happens partly because the heavy selling has simply dried up and there's little left to push price down. The high point this rally reaches becomes the ceiling of the sideways range where big buyers accumulate — so it's a useful line to watch: as long as price keeps failing to break above it, the range is still building.
Also called: AR
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