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Wyckoff

Wyckoff Accumulation & DistributionThe 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 stock market investor of his time, stands as a pioneer in technical analysis. He transitioned from accumulating personal wealth to addressing what he perceived as market injustices, devising the Wyckoff Method to empower traders against market manipulation. Through various platforms like his own Magazine of Wall Street and Stock Market Technique, Wyckoff disseminated his insights. The Wyckoff Method: Wyckoff proposed that markets undergo distinct phases: Accumulation and Distribution. These phases guide traders on when to accumulate or distribute their positions, forming the core of the method. The Wyckoff Accumulation Phase: This phase materializes as a sideways, range-bound period subsequent to a prolonged downtrend. During this stage, significant players seek to establish positions without causing dramatic price drops. The accumulation phase comprises six integral components, each serving a vital role: Preliminary Support (PS): As signs of the downtrend ending emerge, high volume and wider spreads surface. Buyers initiate interest, suggesting the end of selling dominance. Selling Climax (SC): Characterized by intense selling pressure and panic selling, this phase represents a sharp price decline. Often, price closes well above the lowest point. Automatic Rally (AR): Late sellers experience a reversal, driven by short sellers covering positions. This phase sets the upper range limit for subsequent consolidation. Secondary Test (ST): Controlled retesting of lows with minimal volume increase indicates potential reversal. Spring: A deceptive move resembling a downtrend resumption, designed to deceive and shakeout participants. Last Point of Support, Back Up, and Sign of Strength (LPS, BU, SOS): Clear shifts in price action mark the transition into the range's start. A rapid, one-sided move signifies buyer control, often following the spring. Wyckoff Distribution Cycle: Following Accumulation, the Wyckoff Distribution phase unfolds. This cycle consists of five phases: Preliminary Supply (PSY): Dominant traders initiate selling after a notable price rise, leading to increased trading volume. Buying Climax (BC): Retail traders enter positions, driving further price increase. Dominant traders capitalize on premium prices to sell. Automatic Reaction (AR): The end of the BC phase brings a price drop due to decreased buying. High supply causes a decline to the AR level. Secondary Test (ST): Price retests the BC range, assessing supply and demand balance. Sign of Weakness, Last Point of Supply, Upthrust After Distribution (SOW, LPSY, UTAD): SOW signals price weakness, LPSY tests support, and UTAD might occur near cycle's end, pushing the upper boundary. Wyckoff Reaccumulation and Redistribution Cycles: Reaccumulation occurs during uptrends, as dominant traders accumulate shares during price pauses. Redistribution, during downtrends, begins with sharp price rallies as short sellers capitalize. Dominant traders strategically enter positions during these rallies. Wyckoff's Foundational Concepts: Law of Supply and Demand: Prices rise when demand is high and supply is low. Prices fall when supply is high and demand is low. Balanced supply and demand lead to stable prices. Law of Cause and Effect: Price changes are driven by specific underlying factors. Price rises result from accumulation phases, while drops arise from distribution phases. Law of Effort vs. Result: Trading volume should match price movement. Deviations signal potential shifts in market sentiment or upcoming opportunities. The Wyckoff Method is relevant to all markets, including cryptocurrencies like Bitcoin, where supply and demand play a crucial role in influencing price movements.
CRYPTOCAP:TOTALEducation
by Vestinda
1
Nas100 OutlookNas is looking like it is re-accumulating atm but it could turn on a dime and all of a sudden become a distribution schematic so pivot areas are indicated in the annotations on the chart. Just watch out for what price action does in the next coming weeks along the key areas and levels as it will be pretty telling if we are going to start a meltdown soon or if we are going to have a last push to the top most quarter key level. A H&S pattern looking formed atm. Could melt, could not, we will see.
EIGHTCAP:NDQ100
by RSC_FX
KPR Mill Limited - Reaccumulation Review► Phase of reaccumulation begins with a buying climax, wherein the previous rally takes a halt. ► Then a drop is seen which goes to the automatic reaction where other buyers jump in as they see value in the stock. ► After AR, a secondary test happens where another round of selling happens. ► AR and ST define the range of the reaccumulation. Note- at this point we are still not clear whether this is a distribution of reaccumulation. ► Then a spring occurs (optional). This is where weak hands are thrown away from the reaccumulation. ► In between support and resistance, creek occurs where price moves in neither direction doing time-pass here and there. ► Once the resistance is broken, we see big volumes at the LPS - last point of support. This is where we can confirm it is a reaccumulation phase. This material shows schematics of reaccumulation phase and is only for educational purposes. Please consider taking professional advise from your financial advisor before entering any positions. Please like and share if you find the material useful.
NSE:KPRMILLEducation
by Market-Thalaivaa
Wyckoff Cycle - AMD Setup 📊🎢🔍 Phase 1: Accumulation 📈 Imagine a market that's been in a downtrend, beaten down and disheartened. This is the accumulation phase, where savvy investors slowly start scooping up assets at bargain prices. It's like finding hidden treasures amidst the rubble. Prices might move sideways or slightly up, creating a sense of stability. 🎭 Phase 2: Manipulation 🕵️‍♂️ As accumulation continues, the market sentiment shifts. The smart money players start flexing their muscles. Prices might experience sharp upward spikes, tricking the crowd into believing a new bullish trend has begun. This is the manipulation phase – a time when market manipulation is at its peak. The goal? To create FOMO (fear of missing out) and draw in unsuspecting traders. 📉 Phase 3: Distribution 📉 Just when everyone thinks the party is getting started, reality checks in. The market takes a nosedive, catching the latecomers off-guard. This is the distribution phase – where the smart money players start offloading their assets at inflated prices. The unsuspecting crowd buys in, only to face a sudden and often brutal downturn. 💡 The Cycle's Dance: Accumulation, manipulation, and distribution create a rhythm that repeats in the market. It's like a choreographed dance between the smart money and the crowd's emotions. Understanding this cycle can give traders a leg up in spotting potential trends. 📊 Mapping Opportunities: Traders keen on capitalizing on the Wyckoff cycle often look for signs of accumulation, observe price manipulation tactics, and stay cautious during distribution. It's all about knowing the dance steps and staying ahead of the game. So, what's the bottom line in the Wyckoff cycle? 🎢 It's a market ballet of accumulation, manipulation, and distribution – a sequence driven by the dynamics of smart money and crowd sentiment. By recognizing these phases, traders can potentially align their strategies for a smoother dance through the market's twists and turns. Stay curious, stay vigilant, and keep your eyes on the dance floor of trading opportunities! 🚀🕺 ❗See related ideas below❗ Follow + Like this post and leave a nice comment, it will allow me to move faster and make more useful content! 💚💚💚
INDEX:BTCUSDLong
by Yaroslav_Krasko
Wyckoff Logic - A potential accumulation phase GBPUSD 4h After a down trend, the price action changes its character forming a consolidation between the bottom range at 1.26213 and the top range at 1.28040. If the price breaks the top range with a new high and is followed by a retreat that stops somewhere in the (top of a range) area, we will have confirmed the consolidation as the accumulation phase and we can expect to see the mark up phase with the first target at 1.29978 and the second target at 1.31450.
Long
by SebastianFundedTrader
AUDJPY Short was the one last weekI think most traders find August quieter than the rest of the trading year due to lower volatility and ranging markets. For myself, trading opportunities are not as easy to come by but they are still there. Here's a backtested FX:AUDJPY breakdown from last Thursday. Following a bearish 1h break of structure during Thursday's Asia session, price rejected at a 1h demand zone and pulled back into the macro supply zone by New York session on the same day. The clue that sellers were still in control was the corrective nature of the retracement in comparison with the impulsive nature of the structural break. s3.tradingview.com On the lower time frames (click the screenshot link above), price tested the 1h supply zone once with an unconvincing rejection. With the second test, there was a liquidation of the previous high followed by a 5 minute bearish break of structure; a strong sign of selling presence. Price pulled back for a mitigation (ENTRY 1) followed by a further ltf BoS and another mitigation showing that sellers were gradually gaining control again for a downside break. First target, 1h swing low. Gearing up for increased volatility come September. Have a great week. Black Out.
Short
by Black_Magic_Capital
#Bitcoin - thoughts out loud #07Good evening , we are from Ukraine! I expect further depreciation of the cryptocurrency market. But if we see the strength of the buyer at the price of 25k, we will break through local highs. But judging by the current situation, the chart shows weakness. That is, after exiting the trading range (breaking through local highs), we correlate the spread to the volume, which indicates a narrowing of the spread and a decrease in volume several times. For further upward movement, we need new forces. At this time, they are absent. Thank you all for your attention, I wish you success . Sometimes you win /sometimes you learn . #Bitcoin
B
by WVitalievich
Virgin Galactic (SPCE) - Q2 Interest - Potential Accumulation 📊 Fundamental Analysis: Virgin Galactic has been gaining attention in the market due to a positive Q2 performance. The company's strong quarterly results have sparked interest among investors, potentially indicating positive growth prospects ahead. 📈 Technical Analysis: The chart above illustrates a potential Wyckoff accumulation phase for SPCE. The price action appears to be forming a classic Wyckoff pattern, suggesting a potential bullish reversal. We've seen a series of higher lows forming over time, indicating increasing buying interest. 🔄 Anticipating the Spring Phase: The final confirmation for the Wyckoff accumulation pattern often comes with the "Spring" phase, which involves a liquidity grab at the bottom. In this case, we're watching for a potential dip to the 0.272 Fibonacci level around $2.36. This could act as the liquidity grab, setting the stage for a potential bullish move. 📈 Bullish Confirmation: To confirm the bullish scenario, we're looking for a higher high (an outbreak) in the price action, potentially around the $8 to $10 range. This breakout would validate the accumulation phase and signal a potential trend reversal. 🔍 Key Levels to Watch: Support: 0.272 Fibonacci at $2.36 Breakout Confirmation: $8 to $10 range Let's discuss in the comments below! What are your thoughts on SPCE's potential accumulation phase and breakout scenario? Share your insights!
NYSE:SPCELong
by Soldi75
MATIC - Shift In Momentum - Practical Example 📚Dear TradingView community and fellow traders, I am Richard, also known as theSignalyst. The MATIC H4 chart has captured my attention due to its intriguing momentum structure shift. 📉 Following its rejection from the 0.9 - 1.0 resistance zone, MATIC has entered a bearish phase, marked by lower lows and lower highs— a classic MarkDown phase . However, a noteworthy observation is the diminishing size and flattening of the impulse movements. According to Charles Dow, this signals an early alert for a potential shift in momentum, which brings us to the Accumulation phase as per Richard Wyckoff. Presently, MATIC appears to be consolidating within a significant range, spanning from 0.65 to 0.7 — an evident Accumulation phase. 🏹 For the bulls to take over, and the MarkUp phase to start, we need a momentum candle close above 0.7 zone marked in green. I hope you find this post useful, and I would appreciate your likes and support. Which scenario do you think is more likely to happen first? and why? 📚 Always follow your trading plan regarding entry, risk management, and trade management. Good luck! All Strategies Are Good; If Managed Properly! ~Richard
M
by TheSignalyst
21