Wyckoff's Accumulation Scheme on BTCUSD
This is an interesting but bold way of applying one of Wyckoff's schematics on the BTC/USD chart.
Interesting for it's exactly the same accumulation pattern, and bold because this was meant to be applied on higher time frames. Therefore, I don't suggest trading this, only posting it for educational purposes.
As you see, the scheme is broken down into different sections in which I'll explain each step.
Phase A:
Preliminary Support (PS) was broken through by the huge selling power of the bears. Bears tire out from the intense selling and eventually reach Selling Climax (SC). Bulls intensely buying the bottom causing an Automatic Rally (AR) and bouncing up from the bottom. Bulls take profits and the market come back down for a Secondary Test (ST).
Phase B:
Uncertainty hits in as bears think the bottom is hit and bulls are worried that it might fall further. The price consolidates and ranges between the AR and ST zones testing them multiple times.
Phase C:
This is a critical level in the accumulation phase as everything depends on if the support level manages to hold or not. In the case of this example, the Spring is a bear trap to mislead buyers before the price launches up and everybody that accumulated in Phase A and B gets rewarded.
Phase D:
We see higher trading volume and confidence in upward momentum. Price starts making higher lows and showing the Last Point Support (LPS). Price is making higher highs which shows Signs of Strength (SOS), previous resistance zones are broken through and become supports. Retest on the new support level then gives another buying opportunity for bulls to join the ride.
Phase E:
Increased demand and confidence is shown in the market as it makes higher highs and turns into an upward trend.
Once again, this post is purely for educational purposes. Taking this trade is risky as it is unsure if this was to play out on the insignificant 1H timeframe.
Interesting for it's exactly the same accumulation pattern, and bold because this was meant to be applied on higher time frames. Therefore, I don't suggest trading this, only posting it for educational purposes.
As you see, the scheme is broken down into different sections in which I'll explain each step.
Phase A:
Preliminary Support (PS) was broken through by the huge selling power of the bears. Bears tire out from the intense selling and eventually reach Selling Climax (SC). Bulls intensely buying the bottom causing an Automatic Rally (AR) and bouncing up from the bottom. Bulls take profits and the market come back down for a Secondary Test (ST).
Phase B:
Uncertainty hits in as bears think the bottom is hit and bulls are worried that it might fall further. The price consolidates and ranges between the AR and ST zones testing them multiple times.
Phase C:
This is a critical level in the accumulation phase as everything depends on if the support level manages to hold or not. In the case of this example, the Spring is a bear trap to mislead buyers before the price launches up and everybody that accumulated in Phase A and B gets rewarded.
Phase D:
We see higher trading volume and confidence in upward momentum. Price starts making higher lows and showing the Last Point Support (LPS). Price is making higher highs which shows Signs of Strength (SOS), previous resistance zones are broken through and become supports. Retest on the new support level then gives another buying opportunity for bulls to join the ride.
Phase E:
Increased demand and confidence is shown in the market as it makes higher highs and turns into an upward trend.
Once again, this post is purely for educational purposes. Taking this trade is risky as it is unsure if this was to play out on the insignificant 1H timeframe.
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