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...
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...
Pay attention to the phases and letter designations on the graph that I showed on the ADA / BTC pair. (Cardano). A diagram of the accumulation phases is shown. Which are relevant for trading now. Several trading methods are combined on the chart:
1) Trading by the Wyckoff method.
2) Trade in horizontal channels.
3) Trade from important areas (price reversal...
Wyckoff was a pioneer in the technical analysis of the stock market in the early 20th century. He established the Stock Market Academy in 1930. The main course is to introduce how to identify the dealer’s process of collecting chips and the process of distributing chips/judge. Second and third, in the basic law of "causality", the horizontal P&F count within the...
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...
The average up strategy provides Huge wins, Small losses and Risk minimized.
Use RANGE-CHART for this, so you could see the Buy setups more easily with less noise or time distortion.
First
You look for a buy setup, one that you believe that price should move rapidly from your starting buy point (you expect ab big relative move).
Second
You add up...
Nearly 100 years ago, Richard D Wyckoff born in the 19th century was a famous stock trader and investor. Wyckoff developed and carved out a revolutionary and ground breaking methodology which interlinked the institutional activities and large organisations to price movement within the chart. Wyckoff’s method and edge is based on logical reading of price action and...
25 Mar 2020 - Climatic run up with increasing volume followed by biggest down wave with highest supply. Bearish reaction with slow grinding down move during non-regular trading hour (RTH). Could it be preliminary supply?
26 Mar 2020 - Another climatic run up after shocking number of jobless claim (think this ugly number will pressure the House to approve the...
