A Crypto Wyckoff Distribution Pattern
Full Credit to this article on Wykoff Distribution and video.
The reason this pattern caught my eye on a custom 3d timescale are the first 3 events of Phase A lining up perfectly in a cyclical pattern.
I'll update the pattern as it continues prove / disprove.
Phase and Definitions in italics are taken directly from the article.
PHASE A
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PSY - Preliminary Supply
The first peak is the Preliminary Supply or PSY, which is where some retail traders start to sell
BC - Buying Climax
Around this time inexperienced investors start to come in and this causes the Buying Climax or BC shortly after the PSY
AR - Automatic Reaction
This is where institutions start to sell their assets to the newcomers, and this is the Automatic Reaction or AR price tip.
ST - Secondary Retest <--- WE ARE HERE
After some time, the institutions will ease off some of the sell pressure and the market will spike back up to form the Secondary Retest or ST, which is usually just below the BC retail rally.
PHASE B
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As with Phase A of the accumulation, pattern institutions will occasionally push up the price to keep retail interest and confidence high while they secretly sell.
SOW - Sign of Weakness
UT - Up Thrust
PHASE C
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In Phase C of the distribution pattern, we see something called the Upthrust After Distribution or UTAD.
UTAD - Upthrust After Distribution
Whereas the spring is meant to shake out the retail investors, the UTAD is meant to get as many retail investors to buy in as possible through the fomo it causes.
Institutions start to aggressively sell to these investors causing the price to fall. This price collapse continues in Phase D of the distribution pattern.
PHASE D
-----------
The brief pause in the drop is marked by the Last Point Pf Supply or LPSY and is followed by a Sign Of Weakness or SOW, which falls below the support line drawn by the automatic reaction.
LPSY - Last Point of Supply
SOW - Sign of Weakness
PHASE E
-----------
Phase E of the distribution pattern usually blends with phase a of the accumulation pattern, which readies the market for another run-up.
The reason this pattern caught my eye on a custom 3d timescale are the first 3 events of Phase A lining up perfectly in a cyclical pattern.
I'll update the pattern as it continues prove / disprove.
Phase and Definitions in italics are taken directly from the article.
PHASE A
-----------
PSY - Preliminary Supply
The first peak is the Preliminary Supply or PSY, which is where some retail traders start to sell
BC - Buying Climax
Around this time inexperienced investors start to come in and this causes the Buying Climax or BC shortly after the PSY
AR - Automatic Reaction
This is where institutions start to sell their assets to the newcomers, and this is the Automatic Reaction or AR price tip.
ST - Secondary Retest <--- WE ARE HERE
After some time, the institutions will ease off some of the sell pressure and the market will spike back up to form the Secondary Retest or ST, which is usually just below the BC retail rally.
PHASE B
-----------
As with Phase A of the accumulation, pattern institutions will occasionally push up the price to keep retail interest and confidence high while they secretly sell.
SOW - Sign of Weakness
UT - Up Thrust
PHASE C
-----------
In Phase C of the distribution pattern, we see something called the Upthrust After Distribution or UTAD.
UTAD - Upthrust After Distribution
Whereas the spring is meant to shake out the retail investors, the UTAD is meant to get as many retail investors to buy in as possible through the fomo it causes.
Institutions start to aggressively sell to these investors causing the price to fall. This price collapse continues in Phase D of the distribution pattern.
PHASE D
-----------
The brief pause in the drop is marked by the Last Point Pf Supply or LPSY and is followed by a Sign Of Weakness or SOW, which falls below the support line drawn by the automatic reaction.
LPSY - Last Point of Supply
SOW - Sign of Weakness
PHASE E
-----------
Phase E of the distribution pattern usually blends with phase a of the accumulation pattern, which readies the market for another run-up.
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