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Richardwyckoff

BTC the "Wyckoff Re-Accumulation" Hello Traders, Today we are looking at a the current consolidation or trading range of BTC over the past 4 months. When an asset is consolidating or trading range it could be either in an accumulation or a distribution phase per Richard Wyckoff. Richard Demille Wyckoff (November 2, 1873 – March 7, 1934) was an American stock market investor, and the founder and onetime editor of the Magazine of Wall Street (founding it in 1907). He was also editor of Stock Market Technique. During his early years Wyckoff studied many of the most well known early stock traders and later created his own techniques to navigate the markets now known as the Wyckoff Method. The Wyckoff Method is a technical analysis approach developed by Richard Wyckoff that emphasizes the relationship between price and volume to understand the psychology of the market. Wyckoff believed that by studying price action and volume patterns, traders could identify the intentions of large institutions, often called "smart money," and anticipate future market movements. This method focuses on specific phases within a trend, with accumulation being a key stage where large institutions discreetly buy shares before a potential price increase. This buying activity often leads to periods of consolidation, which Wyckoff saw as crucial phases in the accumulation process. Let's delve deeper into these consolidation phases, also known as trading ranges, and how Wyckoff interpreted them. Within the Wyckoff Method, trading ranges, also known as consolidations, represent periods where the price action gets stuck in a defined zone. This sideways movement reflects a temporary tug-of-war between buyers and sellers. While bulls (buyers) try to push the price higher, bears (sellers) attempt to drive it down. Neither side can gain a decisive advantage, resulting in the price bouncing between established support and resistance levels. Wyckoff viewed these consolidations as a crucial phase during accumulation, where large institutions strategically absorb selling pressure from weaker hands. By analyzing volume patterns within the trading range, Wyckoff aimed to identify signs of underlying strength or weakness, ultimately gauging the probability of a future breakout in the direction of the dominant force. Richard Wyckoff developed schematics to illustrate the various stages of accumulation and distribution within his trading method. These schematics weren't rigid formulas, but rather a framework to understand the underlying behavior of large institutions during these phases. One of the schematics portrayed in Wyckoff's accumulation schematic is the re-accumulation. The Re-accumulation similar to a normal accumulation is derived of multiple moving parts focusing on price action and volume. Below are the moving parts of a Wyckoff accumulation and the acronyms defined to better help you understand the schematic listed below. Please take a moment to understand these different stages of events in the schematic as we will be applying them to the current trading range which we are analyzing on the current BTC chart. PSY ( Preliminary Supply ): This marks the initial stage where large institutions begin discreetly selling shares after a significant upward movement. Volume might not be exceptionally high, but there's a subtle increase in selling pressure. BC ( Buying Climax ): This is a period of frenzied buying activity, often driven by retail investors. Volume surges, and the price might reach a temporary high. However, this buying is often filled by large institutions happy to unload their remaining shares. ST ( Secondary Test ): After the buying climax, the price might revisit the area of the BC to gauge remaining buying interest. This is a test of demand and can be a good entry point if volume is low, suggesting the selling pressure is fading. AR ( Automatic Reaction ): This refers to a short-lived price movement in the opposite direction of the underlying trend. It's an automatic response to the previous price movement and doesn't necessarily reflect a shift in the overall trend. Spring : a price movement that tests remaining supply of a security after a period of consolidation. It's a short-lived, sharp downward movement that often appears near support levels. The Spring is now always a part of the Wyckoff re-accumulation schematic. LPS ( Last Point of Supply ): This is the final significant selling pressure before a potential breakout. The price might reach a new high (higher high) on relatively low volume, indicating a lack of sellers and a potential increase in buying power. SOS ( Signs of Strength ): These are bullish price movements on increasing volume, often accompanied by higher highs and higher lows. They signal that demand is overcoming supply, and the price is likely to move upwards. Phase A (2/25-3/15) Preliminary Supply As you can see in the first move of Phase A of the chart shown between 2/24 and 3/04 we had a large buy up of proven to be institutional buyers which can be shown by the buying pressure in the graph below the new ETF inflows and outflows. This would represent the Primary Supply or (PSY). Sometimes followed by the shake out as you can see happened right after the build up of the PSY. This graph denotes the new Spot Bitcoin ETF's and companies that run them such as Blackrocks BTC ETF ( NASDAQ:IBIT ) headed up by the very well known name in finance Larry Fink with the company's Trillions under management in a whole. Greyscales BTC Trust turned ETF ( AMEX:GBTC ) Headed by the recently appointed Peter Mintzberg> Fidelity ( AMEX:FBTC ) leading the company as CEO of the larger asset fund manager Abigail Johnson. ARK 21Shares Bitcoin ETF ( AMEX:ARKB ) headed up by Cathie Wood. Bitwise ( AMEX:BITB ) ran by CEO Hunter Horsley and for all intent purposes we will leave the other 5 ETF's. These are listed in order of largest BTC holdings to smallest just for some context. Buying Climax The second stage in Phase A is the Buying Climax which is predominantly dominated by an increase of volume of retail buyers which you can see in the chart below showing the retail to institutional investor ratios between the time period we are currently looking at on the chart. This is also matched with institutional traders selling into the buying of the asset being bought up by retail. For this instance we can reference the data shown above in the Spot Bitcoin ETF Flows. AMEX:GBTC seemed to be the only large institution that was selling into this buy volume by us little folks. Phase B: (3/15-4/24) Secondary Test As defined above, this is when price action comes down into a demand zone and tests as selling pressure starts to diminish. This becomes a good point of entry for buyers. This is a crucial stage that tests the demand base established during the beginning of the re-accumulation phase. It involves the price action revisiting the area of the buying climax. This offers valuable insight into the strength of the accumulation process. Automatic Reaction After the secondary test you can see on the chart the price action had a swift return to the upper resistance zone creating the AR we are discussing now. The automatic response is a bounce off the lower support area of the consolidation range of the schematic. From the chart we can see a large bullish candle jumping from the bottom of the range happening on 3/20 followed by continued price action up to the top of the range, suggesting we have confirmed the AR within this schematic. Phase C (4/24-5/05) The Spring The Spring is known to be the Primary Shake out of the consolidation period. This is intended to shake out the "weak hands" within the asset. By creating a sense of urgency, it can entice short-term traders and those with shaky confidence to sell their holdings. The spring is characterized by a sudden and rapid decline in price, often accompanied by a moderate increase in volume. Another characteristic is low volume. After the Initial shake out there will be a price action rebound that Signifies the selling pressure has been exhausted and buyers are stepping back in. As you can see on the chart, the price breaks the bottom support range shortly after jumps back in proving buyers are back in the market. Phase D (5/05-current) Last Point of Supply As defined above, this event consists of a price movement to the upper part of the range with lower selling volume when the price pushes off the resistance area of the range. This is very indicative of the LPS stage of this phase. Sign of Strength The last stage in Phase D is the Sign of Strength. For the time being we are waiting to see this event unfold. The first indication we will have that this is taking place is the break of the top of the trading range around $73,250. If this happens we can expect the expansion phase out of the range to take place. In conclusion, by analyzing the recent price action of Bitcoin through the lens of the Wyckoff re-accumulation schematic, we've identified several key events. The presence of a Buying Climax, Secondary Test, Automatic Reaction, and Spring all suggest a potential accumulation phase might be underway. The recent price movement towards the upper resistance zone with lower volume hints at a Last Point of Supply, which could be followed by a breakout if confirmed by Signs of Strength, such as a surge in volume accompanying a price move above the consolidation range. While further observation is needed to solidify these signals, the Wyckoff framework offers valuable insights into the possible direction of the Bitcoin market. Remember, the Wyckoff method is a probabilistic tool, and future price movements can deviate from these expectations. Quote From Richard Wyckoff "I not only aim to make money but, to keep it and make it grow" Stay Growing My Friends, Savvy
by Crypto_Kinfolk
1
The Laws of Wyckoff: Effort Vs ResultIntroduction: --------------------------------- Richard Demille Wyckoff (November 2, 1873 – March 7, 1934) was considered one of the five “titans” of technical analysis , along with Dow, Gann , Elliott and Merrill. Wyckoff was an avid student of the markets, as well as an active tape reader and trader. He observed the market activities and campaigns of the legendary stock operators of his time, including JP Morgan and Jesse Livermore. From his observations and interviews with those big-time traders, Wyckoff codified the best practices of Livermore and others into laws, principles and techniques of trading methodology, money management and mental discipline. Laws of Wyckoff --------------------------------- Wyckoff Analysis is fundamentally based off the Three Laws of Wyckoff, which can be found and recognized across many different types of Analysis, the Laws help give insight to our analysis and choice of buying/selling. The Three Laws of Wyckoff are: Supply & Demand Effort vs. Result Cause & Effect Law #2: Effort vs. Result --------------------------------- Wyckoff states that every effort should lead to a result in the financial markets. The above example describes the concept of Effort vs Result in a Trading Range (Parallel Channel) using Volume & Price Based Analysis This statement is applied to our charts by using data found on Trading View from the Volume Indicator. When we see abnormally large trading volume at key areas on the chart, such as a defined "TR (Trading Range)" we can usually expect a continued move in that direction, this is called the Breakout of the range. But if buyers cannot gather enough momentum to continue the Breakout action, they may become trapped, and as prices fall back inside of the defined area, their Effort has produced no Result. That abnormally large trading volume can give us a potential sign that the participants betting on the market to move in that direction failed to gather enough momentum to do so (Light Blue), which leads to them being trapped (Dark Blue) and then a reverse in the opposite direction in price (Purple). This kind of Analysis is not just "fixed" to the bottom or top of a Trading Range, Effort vs Result can be interpreted a number of ways, for example in the below image we can see that the Effort in this case was not outside of the range, but a failure from the buyers to hold prices INSIDE the range: --------------------------------- Thank you and if you found this writeup insightful and informative don't forget to hit Subscribe, Like & Comment to show your appreciation. Visit my signature for further education on these concepts in action
CEducation
by Worth_The_Ri5k
1
XRP Richard Wyckoff (Re-accumulating Schematic)Hello Traders! Boy do I have a treat for you today! What you are looking at here is a Schematic founded by the late Richard Wyckoff, a mogul to the history of technical analysis and stock trading or as most of us would refer to him as... the "OG" of getting his paper up. As legend has it, Wyckoff being the savvy trader he was in the early 1900's, noticed that markets had became rather manipulated thus, being very difficult for the average trader to be profitable. Wyckoff was no average joe you see, he'd been working in the stock market from a very young age, grabbing print outs of stock ticker updates at a firm in New York as a kid, picking up a wealth of knowledge along the way. Which later in life helped him develop what we refer to today as Wyckoffian Logic. This is what we are here to discuss today. Idk if you're a fan of stories and theories that make you go hmmm but, if you are you will enjoy the rest. Ok, lets get to the meat and potato's of the story here. As I said before, Wyckoff developed a trading strategy based on what he saw as market makers (or as Wyckoff referred to them as " The Composite Man" and developed a heuristic device to help understand price movements in individual stocks and markets as a whole which he dubbed the "Composite Man*" .) working in unison against the rest of the market. This did not sit well with him... Now, if you are new to trading, let me be the first to tell you that even with the best TA (Technical Analysis) skills in the world you will still get your profit split by a market maker from time to time this should be expected. To minimize your losses and maximize your profits having a strategy is imperative. Tools such as using proper risk management approaches that fit your risk tolerance and not over allocating your funds is extremely helpful against this an all aspects of being profitable. The main reason the market maker is able to create liquidity from your trades taking your funds making them his/hers (For someone to make money in the market another has to lose money in the market) is the psychology behind trading, your fear, your greed and everything in between. Richard Wychoff developed such a strategy to offset the fears, manipulation and to instead gain from the devices used against you in the markets and gain along with the market makers. Wyckoff advised retail traders to try to play the market game as the Composite Man played it. In fact, he even claimed that it doesn't matter if market moves “are real or artificial; that is, the result of actual buying and selling by the public and bona fide investors or artificial buying and selling by larger operators.” (The Richard D. Wyckoff Method of Trading and Investing in Stocks, section 9M, p. 2) Below is the general understanding of a part of this logic as displayed in the chart I have published for you. The chart is only half played out so you will be able to see how the development of this study, the gain if its knowledge and the application of this specific Re-Accumulation Schematic produced by the late Richard Wyckoff can help you become a better trader in a whole. A few things that Wyckoff noticed in his years of being involved in markets and watching the activities of these "Large Operators" or Market Makers he compiled a few observations about them and details the retail trader MUST understand to become a successful trader. 1) The Composite Man carefully plans, executes and concludes his campaigns. 2) The Composite Man attracts the public to buy a stock in which he has already accumulated a sizeable line of shares by making many transactions involving a large number of shares, in effect advertising his stock by creating the appearance of a “broad market.” 3) One must study individual stock charts with the purpose of judging the behavior of the stock and the motives of those large operators who dominate it. 4) With study and practice, one can acquire the ability to interpret the motives behind the action that a chart portrays. Wyckoff and his associates believed that if one could understand the market behavior of the Composite Man, one could identify many trading and investment opportunities early enough to profit from them. Understanding a WYCKOFF PRICE CYCLE is key to understanding how markets work in a whole. The chart that I have presented to you is part of this cycle but is only one schematic in part of the whole larger price cycle. The chart I presented is as stated before the "Re-Accumulation" of the asset which is a continuation schematic of an asset the market maker (Composite Man) plans to mark up. Whether this be done by advertising bullish news on TV, articles that speak of rumors of mergers of a company.... or in this case my thought is the rumor of XRP being relisted on exchanges and the potential of Ripple Labs winning the case the SEC filled against them a year ago now. The photo below represents a simple view of the price price action an asset will have within the broader cycle. As in the chart that I posted, there are 5 phases in which I will help you understand. The phases are as follows. Phase A: Phase A marks the stopping of the prior downtrend. Up to this point, supply has been dominant. The approaching diminution of supply is evidenced in preliminary support (PS) and a selling climax (SC). These events are often very obvious on bar charts, where widening spread and heavy volume depict the transfer of huge numbers of shares from the public to large professional interests. Once these intense selling pressures have been relieved, an automatic rally (AR), consisting of both institutional demand for shares as well as short-covering, typically ensues. A successful secondary test (ST) in the area of the SC will show less selling than previously and a narrowing of spread and decreased volume, generally stopping at or above the same price level as the SC. If the ST goes lower than that of the SC, one can anticipate either new lows or prolonged consolidation. The lows of the SC and the ST and the high of the AR set the boundaries of the TR. Horizontal lines may be drawn to help focus attention on market behavior, as seen in the two Accumulation Schematics above. Sometimes the downtrend may end less dramatically, without climactic price and volume action. In general, however, it is preferable to see the PS, SC, AR and ST, as these provide not only a more distinct charting landscape but a clear indication that large operators have definitively initiated accumulation. In a re-accumulation TR (which occurs during a longer-term uptrend), the points representing PS, SC and ST are not evident in Phase A. Rather, in such cases, Phase A resembles that more typically seen in distribution (see below). Phases B-E generally have a shorter duration and smaller amplitude than, but are ultimately similar to, those in the primary accumulation base. Phase B: In Wyckoffian analysis, Phase B serves the function of “building a cause” for a new uptrend (see Wyckoff Law #2 – “Cause and Effect”) . In Phase B, institutions and large professional interests are accumulating relatively low-priced inventory in anticipation of the next markup. The process of institutional accumulation may take a long time (sometimes a year or more) and involves purchasing shares at lower prices and checking advances in price with short sales. There are usually multiple STs during Phase B, as well as upthrust-type actions at the upper end of the TR. Overall, the large interests are net buyers of shares as the TR evolves, with the goal of acquiring as much of the remaining floating supply as possible. Institutional buying and selling imparts the characteristic up-and-down price action of the trading range. Early on in Phase B, the price swings tend to be wide and accompanied by high volume. As the professionals absorb the supply, however, the volume on downswings within the TR tends to diminish. When it appears that supply is likely to have been exhausted, the stock is ready for Phase C. Phase C: It is in Phase C that the stock price goes through a decisive test of the remaining supply, allowing the “smart money” operators to ascertain whether the stock is ready to be marked up. As noted above, a spring is a price move below the support level of the TR (established in Phases A and B) that quickly reverses and moves back into the TR. It is an example of a bear trap because the drop below support appears to signal resumption of the downtrend. In reality, though, this marks the beginning of a new uptrend, trapping the late sellers (bears). In Wyckoff's method, a successful test of supply represented by a spring (or a shakeout) provides a high-probability trading opportunity. A low-volume spring (or a low-volume test of a shakeout) indicates that the stock is likely to be ready to move up, so this is a good time to initiate at least a partial long position. The appearance of a SOS shortly after a spring or shakeout validates the analysis. As noted in Accumulation Schematic #2, however, the testing of supply can occur higher up in the TR without a spring or shakeout; when this occurs, the identification of Phase C can be challenging. Phase D: If we are correct in our analysis, what should follow is the consistent dominance of demand over supply. This is evidenced by a pattern of advances (SOSs) on widening price spreads and increasing volume, as well as reactions (LPSs) on smaller spreads and diminished volumes. During Phase D, the price will move at least to the top of the TR. LPSs in this phase are generally excellent places to initiate or add to profitable long positions. Phase E: In Phase E, the stock leaves the TR, demand is in full control and the markup is obvious to everyone. Setbacks, such as shakeouts and more typical reactions, are usually short-lived. New, higher-level TRs comprising both profit-taking and acquisition of additional shares (“re-accumulation”) by large operators can occur at any point in Phase E. These TRs are sometimes called “stepping stones” on the way to even higher price targets. *“…all the fluctuations in the market and in all the various stocks should be studied as if they were the result of one man’s operations. Let us call him the Composite Man, who, in theory, sits behind the scenes and manipulates the stocks to your disadvantage if you do not understand the game as he plays it; and to your great profit if you do understand it.” (The Richard D. Wyckoff Course in Stock Market Science and Technique, section 9, p. 1-2) NOW... that you have a general understanding of this theory, how it works and how I have applied it to this chart on XRP, it is important that you understand what XRP is, what function it has as a real world application as well as what this tech would be replacing and is a competitor to. What Is XRP? XRP is a cryptocurrency designed as an alternative to Bitcoin, with a focus on facilitating trustless, instant and cheap cross-border payments. Like Bitcoin, XRP relies on a public ledger, called XRP Ledger, for storing transaction details. However, the payment network built on the ledger does not utilize mining to validate and record new transactions. Instead, the XRP Ledger requires trusted validator nodes to reach consensus in record time and maintain the transaction ledger — roughly every 3 to 5 seconds. These trusted nodes are collectively called the Unique Node List or UNL. Therefore, unlike Bitcoin and its proof-of-work consensus protocol, the XRP Ledger utilizes a consensus mechanism based on the Federated Byzantine Agreement (FBA) model. Since the XRP ledger does not require mining, its native token, XRP, was premined at a very early stage of its development. A total of 100 billion XRPs were premined and launched in 2013. Today, over 46 billion of the total XRP supply is in circulation. Note that in addition to XRP it is possible to transact with other currencies in the Ripple ecosystem. Before we dive into the history of this digital asset, it is important to know the difference between XRP, Ripple and RippleNet. As discussed earlier, XRP is the ecosystem’s native token. RippleNet, on the other hand, is the digital payment network that runs on the public distributed ledger, called XRP Ledger. Ripple is a for-profit company that controls the development and marketing of RippleNet. How Does XRP Work? XRP was created by Ripple to be a speedy, less costly and more scalable alternative to both other digital assets and existing monetary payment platforms like SWIFT. RippleNet’s ledger is maintained by the global XRP Community, with Ripple the company as an active member. The XRP Ledger processes transactions roughly every 3-5 seconds, or whenever independent validator nodes come to a consensus on both the order and validity of XRP transactions — as opposed to proof-of-work mining like Bitcoin (BTC). Anyone can be a Ripple validator, and the list is currently made up of Ripple along with universities, financial institutions and others. Ripple Partnerships One of Ripple's main use cases is to facilitate the cross-border transfer of money. In achieving this aim, Ripple has had many high-level partnerships with financial institutions that make use of its services. For example, before the partnership ended in March 2021, Ripple and MoneyGram worked together (MoneyGram used Ripple's cross-border payment and foreign exchange settlement product). In June 2020, Banco Santander (one of the largest banks in the world) partnered with Ripple to use its One Pay FX service — a jointly developed cross-border payments system. And in November 2020, Bank of America was confirmed as a user of RippleNet, along Santander, Standard Chartered and others. Controversies and Legal Crises The first controversial incident associated with XRP was the development team’s decision to utilize a centralized business framework, which gives Ripple full control of XRP’s supply. The company therefore has the final say over the distribution and sale of the remaining supply of XRP. This, together with the underlying infrastructure of its payments ecosystem, are clear indicators that unlike Bitcoin, XRP is a centralized cryptocurrency. This also fed into unease regarding the possibility that Ripple’s founders, Jed McCaleb and Chris Larsen, may have unduly capitalized on this centralized structure in allocating 20 billion XRP to the founding team. Jed McCaleb left Ripple sometime between 2013 and 2014 to launch Stellar. As he himself owned 6.5 billion XRP, there were concerns that he might dump his holdings and start a chain reaction that could potentially crash the value of the digital asset. This prospect prompted Ripple and McCaleb to reach a formal agreement intended to settle the company’s concerns, which was later revised in 2016 following a lawsuit. In 2014, Ripple introduced the balance freezer feature as a measure to confiscate or freeze all non-XRP currencies from users deemed to be violating anti-money laundering rules. In essence, any of the Ripple Gateways or financial institutions serving as non-XRP currencies issuers on XRP Ledger can censor the balances of users, provided that such balances are not XRP-denominated. This implementation further reinforced the appreciable fact that the XRP ecosystem is somewhat susceptible to elements of centralization. The first skirmish between Ripple and the U.S. regulatory authorities was in 2015: Ripple was fined $700,000 for not complying with the Bank Secrecy Acts in its sales of XRP tokens without seeking the required authorization. As part of the settlement, Ripple agreed to introduce Know Your Customer (KYC) checks for future XRP investors. Ripple was then the subject of another lawsuit in 2017. Blockchain firm R3 accused Ripple of illegally terminating an agreement whereby R3 would purchase 5 billion XRP at an exchange rate of $0.0085 before September 2019. In response, Ripple filed a countersuit alleging that R3 had not kept up its side of the deal. Conclusion From this history, it is clear that the company has weathered some controversies and legal battles until this point, while simultaneously continuing to add high level institutions to work with RippleNet. It’s therefore perhaps less surprising that both the value of XRP and the popularity of the payments network remain reasonably resilient, even in the face of Ripple’s current difficulties with the SEC. Now with a better understanding of what XRP is you must understand what ripple aims to do by understanding what SWIFT is as a company, tech and making the connection between XRP being a replacement for swift. For this I am going to leave you a link to their website and a brief understanding of what swift does. www.swift.com A few things you will want to look into is the ISO 20022 Global language... XRP has this tech. As well as the market cap of the transactions that Swift handles on a daily basis. To keep it simple, and put it all in layman's terms to best understand and put together all of the information you have learned here today and gained on your own as well. Swift is a payment intermediary, so basically, when one bank wants to send another bank remittance at the end of the month, the tech between the two that is used is what Swift provides. To give you an understanding of the scale of this company... they handle M1 money on a daily basis. VISA and MASTERCARD use this tech. Now, keep in mind, XRP is hundreds of times faster than the tech SWIFT operates. The most important part is how much cheaper it would be to use XRP..... It would save world banks billions maybe even a trillion dollars a year. So put this into perspective, XRP is around a $46 billion dollar market cap. If it took over half of the payments that swift currently handles a day, XRP would be around a $4 trillion dollar market cap. If XRP is around $1 at a $50 billion dollar market cap and it went to a $40 T market cap.... XRP would be about $80 each. Now does the Wyckoff schematic make sense.... and even the SEC suing them make sense as well? I hope you enjoyed this wealth of knowledge and i also hope it helps you grow financial wealth based on the research that you do and make decisions on here after. As always, have a GREEN week! Savvy
Long
by Savvythe1
11
Wyckoff Price CycleHello Traders, Today I wanted to show you a little bit of information to help you understand the market cycle in a Wyckoff Price Cycle. Richard Wyckoff was a world renowned trader from over 100 years ago who gained notoriety back in the roaring 20's. You should take some time to get to know him and his teachings. Here is an understanding of his development of the price cycle. According to Wyckoff, the market can be understood and anticipated through detailed analysis of supply and demand, which can be ascertained from studying price action, volume and time. As a broker, he was in a position to observe the activities of highly successful individuals and groups who dominated specific issues; consequently, he was able to decipher, via the use of what he called vertical (bar) and figure (Point and Figure) charts, the future intentions of those large interests. An idealized schematic of how he conceptualized the large interests' preparation for and execution of bull and bear markets is depicted in the figure below. The time to enter long orders is towards the end of the preparation for a price markup or bull market (accumulation of large lines of stock), while the time to initiate short positions is at the end of the preparation for price markdown. Wyckoff's chart-based methodology rests on three fundamental “laws” that affect many aspects of analysis. These include determining the market's and individual stocks' current and potential future directional bias, selecting the best stocks to trade long or short, identifying the readiness of a stock to leave a trading range and projecting price targets in a trend from a stock’s behavior in a trading range. These laws inform the analysis of every chart and the selection of every stock to trade. 1. The law of supply and demand determines the price direction. This principle is central to Wyckoff's method of trading and investing. When demand is greater than supply, prices rise, and when supply is greater than demand, prices fall. The trader/analyst can study the balance between supply and demand by comparing price and volume bars over time. This law is deceptively simple, but learning to accurately evaluate supply and demand on bar charts, as well as understanding the implications of supply and demand patterns, takes considerable practice. 2. The law of cause and effect helps the trader and investor set price objectives by gauging the potential extent of a trend emerging from a trading range. Wyckoff's “cause” can be measured by the horizontal point count in a Point and Figure chart, while the “effect” is the distance price moves corresponding to the point count. This law's operation can be seen as the force of accumulation or distribution within a trading range, as well as how this force works itself out in a subsequent trend or movement up or down. Point and Figure chart counts are used to measure a cause and project the extent of its effect. (See “Point and Figure Count Guide” below for an illustration of this law.) 3. The law of effort versus result provides an early warning of a possible change in trend in the near future. Divergences between volume and price often signal a change in the direction of a price trend. For example, when there are several high-volume (large effort) but narrow-range price bars after a substantial rally, with the price failing to make a new high (little or no result), this suggests that big interests are unloading shares in anticipation of a change in trend. This is just a start, it is up to you to develop the rest of your knowledge. I will be posting some more later. As always, have a GREEN week. Savvy
CRYPTOCAP:XRPEducation
by Savvythe1
45
BTC Price Action Update - ConsolidationThe price moves interestingly, seems like it has trouble continuing a bullish movement right now - the price entered an equilibrium, in my opinion, it's a reaccumulation that will break strongly upward I will break the stages down 1. SC - AR - ST - Small Correction: Those created and completed Phase A - Stopping the previous trend: the fact that the correction that came after the ST was very weak is a good sign - which brings me to the next point. 2. Upthrust That Upthrust marks the beginning of Phase B - Building the cause: the upthrust is very strong, it is made of relatively big green candles and small, hammerish red candles. the fact that the price has strong support in the exact middle of the range is also positive - it shows that the channel is bullishly narrowed and that the interest in lower prices gets lower. will update as the range develops
Long
by dma300
DXY - Wyckoff Market Cycle Theory!Hello TradingView Family, this is Rich and I found DXY H4 chart interesting, following the famous/great Wyckoff Cycle as per Richard Wyckoff. First, What is Wyckoff Cycle? - Accumulation Phase The Accumulation stage is caused by increased institutional demand. Bulls are slowly gaining power and as a result, they are poised to push prices higher. - Markup Phase Bulls gain enough power to push the price through the upper level of the range. This is usually a signal that the price is entering the second stage and that a bullish trend is emerging on the chart. - Distribution Phase This phase is where the bears are attempting to regain authority over the market. The price action on the chart at this stage is flat, just like the Accumulation phase. - Markdown Phase The Markdown process comes as a downtrend and begins after the Distribution phase. It indicates that the bears have gained enough power to push the market downward. on DXY, the cycle phases are highlighted in the picture. In brief, we are now in the Distribution phase and we are waiting for a breakout below the last low for the bears to take over and the Markdown phase to start. Meanwhile, until the bears take over, DXY would be overall bullish and can still trade higher. Good luck! All Strategies Are Good; If Managed Properly! ~Rich
TVC:DXY
by TheSignalyst
15