BTC/USD Wykoff Accumilation
Using the Wykoff theory there we have completed Phase A moving into Phase B.
Key Terms in Phase A
PS – preliminary support, after prolong down-move the buying begins and you can see the stock bounces with some higher volume. It shows the stock is approaching the bottom.
SC – selling climax, panic selling by the public and it is being absorbed by larger professional operators. Normally it comes with bad news and usually appears with high volume.
AR – automatic rally, after the selling pressure has diminished and the buying pushes the price up.
ST – secondary test, the retest of previous SC. Usually the volume is low and large operators are testing the SC price.
Phase B we can expect that the lower levels of support will be tested with a dip down to the lower 30s before the spring in Phase C which is the final test by the large operators to make sure the available supply is absorbed before the markup. It is also the best time for short term traders to enter the trade (If moment is strong we will stay above the upper support). Followed by a test of support not returning down to the previous dip. At this point we will move into Phase D last point of support (LPS), the stock pullback to test the support with the volume diminished. This will lead us into The sign of strength (SOS), the stock rallies with high volume and shows the stock is preparing for the next rally. Sometimes it looks like pennant or flag which we lead us to the promise land.....
***note I assume the upper resistance will be around 49k (200EMA) with the about of sells(asks) at this price
"Mannnnnn I hope Richard Wyckoff knew what he was doing"
-KewlKat
Key Terms in Phase A
PS – preliminary support, after prolong down-move the buying begins and you can see the stock bounces with some higher volume. It shows the stock is approaching the bottom.
SC – selling climax, panic selling by the public and it is being absorbed by larger professional operators. Normally it comes with bad news and usually appears with high volume.
AR – automatic rally, after the selling pressure has diminished and the buying pushes the price up.
ST – secondary test, the retest of previous SC. Usually the volume is low and large operators are testing the SC price.
Phase B we can expect that the lower levels of support will be tested with a dip down to the lower 30s before the spring in Phase C which is the final test by the large operators to make sure the available supply is absorbed before the markup. It is also the best time for short term traders to enter the trade (If moment is strong we will stay above the upper support). Followed by a test of support not returning down to the previous dip. At this point we will move into Phase D last point of support (LPS), the stock pullback to test the support with the volume diminished. This will lead us into The sign of strength (SOS), the stock rallies with high volume and shows the stock is preparing for the next rally. Sometimes it looks like pennant or flag which we lead us to the promise land.....
***note I assume the upper resistance will be around 49k (200EMA) with the about of sells(asks) at this price
"Mannnnnn I hope Richard Wyckoff knew what he was doing"
-KewlKat
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