The Wyckoff Method, pioneered by Richard Wyckoff, a prominent figure in the early 1900s stock market, remains a powerful technical analysis-based trading approach. This article delves into the intricacies of the Wyckoff Accumulation and Distribution phases, fundamental to this method.
Who was Richard Wyckoff?
Richard Wyckoff, a highly successful American...
The Wyckoff Method involves a five-step approach to stock selection and trade entry, which can be summarized as follows:
Determine the present position and probable future trend of the market. Is the market consolidating or trending? Does your analysis of market structure, supply and demand indicate the direction that is likely in the near future? This...
PSY—preliminary supply, where large interests begin to unload shares in quantity after a pronounced up-move. Volume expands and price spread widens, signaling that a change in trend may be approaching.
BC—buying climax, during which there are often marked increases in volume and price spread. The force of buying reaches a climax, with heavy or urgent buying by...
A Distribution is a range-bound price structure that precedes a markdown (downtrend) after completion of the prior uptrend. Re-accumulations often scare traders and investors into believing that a Distribution is forming which can cause them to exit their positions. Re-accumulations form repeatedly in a major uptrend. Distributions, on the other hand, result in a...
Here's a throwback to Wyckoff Logic.
Recall market phases, when ranging ends (accumulation or distribution)
you jump the creek or break the ice then just like everything in life effect follows cause and you end up with either a mark-up or a mark-down.
Phase A: Phase A in a distribution TR marks the stopping of the prior uptrend. Up to this point, demand has been dominant and the first significant evidence of supply entering the market is provided by preliminary supply (PSY) and the buying climax (BC). These events are usually followed by an automatic reaction (AR) and a secondary test (ST) of the BC, often upon...
PSY—preliminary supply, where large interests begin to unload shares in quantity after a pronounced up-move. Volume expands and price spread widens, signaling that a change in trend may be approaching.
BC—buying climax, during which there are often marked increases in volume and price spread. The force of buying reaches a climax, with heavy or urgent buying by...
"This is a hypothesis that needs more testing to be more precise."
Wyckoff's theory t is one of the most influential theories of market expression, and the most important components of which are lateral movement areas and trends. This theory turns the graph into something like Dots and lines (stations and paths). But it is not as easy to use as written in books....
Here 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...
This is a Smart Money Concepts Diagram With Labeled Wyckoff Accumulation And Distribution Schematics.
These are the main smart money trade setups that you will find in your charts, this is how smart money (big banks, funds, composite man, etc.) manipulate markets to engineer liquidity.
Wyckoff methods teach a bigger picture view of the markets and why they are...
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This is Wyckoff's Accumulation phase that is tricky to understand, Wyckoff's methods are real smart money concept. Actually Wyckoff's understand how SM place their orders. So after a long time by studying markets sir Wyckoff distributed his knowledge between public. And reality is Support and Resistance work but not so nicely SM know how retail traders trade the...
A Fazı
İlk faz, yerleşmiş bir yükseliş trendinin azalan talep nedeniyle yavaşlamaya başlamasıyla ortaya çıkar. Öncü Arz (Preliminary Supply (PSY)) satış gücünün kendini göstermeye başladığını işaret eder ancak halen yükseliş trendini durdurmaya yetecek kadar güçlü değildir. Daha sonra yoğun bir alım faaliyeti sonucunda Alım Zirvesi (Buying Climax (BC)) oluşur. Bu...
Here is an example of Distribution in Wyckoff Schematics.
Here as you can see you could easily trade with the smart money and take huge profits if you just understood how smart money move the market in order to get where they want.
It works on all timeframes in reverses areas, where you believe, based on your analysis that the market is likely to reverse.
Textbook educational example of the Wyckoff Price Cycle, focusing on; Accumulations, Distribution, Markups, Markdowns, The Spring and UTAD.
The graphic doesn't take into consideration the finer details of both the accumulation &/or distribution schematics nor does it focus on the re-accumulation / re-distribution schematics.
Please see our other ideas for a...
