Get started

Spring

Wyckoff theory and Volume tradingHere is a breakdown on LTC because some have complained about my call to short LTC. I have not changed my bias. I want to give an example of the phases as I see it now and what I am looking for before I go LONG. This will be interesting for breakout traders since they usually don't realize that the break and retest trade is contained within phase C and may or may not contain a spring. But when it does it is a type 1 schematic and we see it pinpointed with a volume pattern we call the stop hunt pattern. Currently we are in Phase B.
Education
by FLASHGORDON10
1
Why S and R works so good - Spring & Upthrust WyckoffWelcome Traders to a new Educational Posts. Today we will have a deeper look at Support and Resistance. One of the most popular chart techniques out there, but the question?! Do they really work? Absolutely YES. But probably not like most of the traders think they do. That simple Break and Retest Strategy. NOOO! I would like to introduce you to the extended version of Support Resistance. The Wyckoff Spring and Upthrust. Wyckoff Spring and Upthrust In other words they are simply the Fake Outs at Support and Resistance Levels. The idea behind it is to get an entry exactly there where most of the trader will put their SL. -> WHY?! because of the LIQUIDITY The whole market is based on Liquidity (Supply Demand). The bigger fish will always win. Those who have the bigger amount will always dominate here. Just FACTS . So how do you want to position yourself in the market. Exactly there were 95% of the Retail Traders will put there SL? Or do you want to change your perception on how you view the market. This will completely change your view on the Forex Market. Supply Demand What I also do is I use my own style of Supply Demand to identify exactly those areas where most of the trader will put there SL and I will place exactly my Entry there with a very tight SL to get bigger Risk Reward. Of course I will not have that much of valid entries for my setups as they do not occur as often as Support Resistance Setups but the Total Risk Reward is a complete new Level. WHY? Example Upthrust Because you are rocking the market with the market movers. You are always clearing with these entries both sides. #1 Sellers at Resistance because of Upthrust #2 Breakout Trader(buy) because of Upthrust Sell is the right decision in this case but most of the Traders will lose that Trade due to SL hit. Everybody is placing the Entry and SL different but the majority is losing this trade. Spring Example This was the bigger manipulation as the price did a strong move to the downside through the level of Support. This level was a very interesting level for Retail Traders to buy. Doji occured for Price Action Confirmation but the price dropped down to the level of Demand. Why? -> Liquidity. All SL were located there so Market Movers had there buy limit order placed exactly there. Conclusion With this Post I do not want to judge Retail Traders using Support Resistance. Maybe you found a nice Strategy with that and you are profitable. I am also using Support Resistance but simply in a different way as you can see. I just wanted to share with you my thoughts behind Support Resistance and how I use them to be profitable Please leave a LIKE if you found this Post useful and share your thoughts below!
Education
by DariusFxTrading
3
BTC Wyckoff AccumulationPS - Preliminary Support (buys provide a bounce to slow move down) SC - Selling Climax (Buys absorb remaining sells , end of panic sell off) AR - Automatic Rally (Price rise caused by volume buys and lack of sells on the orderbook) ST - Secondary Test (retest of support, may occur multiple times) Shake Out - Volume sell to drop price encouraging inexperienced traders to close their longs opened at ST and possibly cause additional panic sells Spring - Buy orders filled from Shake Out and price rises sharply and orders clear remaining sell orders Test - Test of available supply. Low supply results in price mark up breaking previous resistance levels SOS - SIgn of Strength (Often a result of high volume buying or fomo after a spring) LPS - Last Point of Support (Test for Resistance / Support flip, Puillback) BU - Back-up - After a jump across the creek move, the price often experiences retest of support and will pull back close to the low after the SOS TR - Trading Range (Caused by profit taking at the end of the SOS and re-accumulation at the new price range) Length / duration can vary. Set range high as next high after SOS Set range low as LPS after SOS
COINBASE:BTCUSDEducation
by paulflint
1