As the area of accumulation progresses, the Composite Operator continues to buy shares at the bottom of the trading range, and sells some of his holdings at the top of the trading range for the purpose of pushing prices back down in order to accumulate them at the best possible price. During this time, the public may also buy. This poses a problem for the Composite Operator. If the public is allowed to buy, they may sell prematurely for a short quick profit as the price is moved out of the trading range. This could cause a hesitation in the price markup, or worse, force the price back down into the trading range. Moreover, some people in the trading range are shorting the stock. The Composite Operator would love nothing better than to trap these short sellers in during a quick mark-up, and force them to close their positions (buy) during his mark-up, adding full to the Composite Operator's Operation. So, the problem for the Composite Operator is to get rid of these weak holders, without losing control of his position, before he moves the stock up. The Composite Operator can use this shakeout technique several times, either during the accumulation process or during an uptrend. These are know as ordinary shakeouts. If however, he is finished with his accumulation and wants to shake the public out so that he can move the stock up out of the trading range, this is know as a Terminal Shakeout. A Terminal Shakeout occurs at the end of a period of accumulation.
