One of the primary reasons for using the Wyckoff method is to improve the market position by predicting the upcoming price movements, especially where a major risk/reward ratio is involved. Trading Ranges (TRs) is another concept used by the method which is used to determine the accumulation and distribution zones. These are those zones where the prices bounce between specific high and low points and a relative balance exists between demand and supply. Different institutions and traders prepare themselves for the next bull run by making buy and sell decisions using these ranges. In both the accumulation and distribution process, a composite man/mediator actively buys and sells. This volume or extent of distribution and accumulation further reveals the next moves for traders.The distribution and accumulation are considered as the most important part of the Wyckoff method in the cryptocurrency community. These schematics are divided into two sections, named distribution and accumulation. These sections are further divided into five sub-sections (ranging from A to E).
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.