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Wyckoff

How Wyckoff & Elliot Wave Theory applied togetherMaybe this near "full-stack" technical analysis using Wyckoff and Elliot Theory along with relevant indicators such as Moving Average and Cumulative Volume Delta (CVD) will puzzled some of the traders who used to have a simpler analysis on the market. But to those who curious this is something that is really interesting to know. The chart above is showing us how the two theories can be complementary to each other. Lets analyze the chart above of BTC/USD in 4h timeframe from left to right comprehensively based on the Wyckoff phases of the 2nd accumulation model. Phase A: During the early November of 2022, BTC was under heavy sell-off after Binance dumping hard on FTX where the price crossunder 200 EMA and 100 SMA. The waterfall crash of BTC was printing a 5-wave of zigzag wave. We can see that the lowest point of wave 3 shows the highest selling volume in a single 4h HA candle and also act as Preliminary Support (PS) where then I put the 1st support line there. The sell-off continue to form the last zigzag wave where we can see multiple high selling volume bars and made a very deep negative cumulative volume delta in which it represents as Selling Climax (SC) in Wyckoff. A massive buying then occurred which immediately push the price back up to the wave 4 of zigzag wave area, which in Wyckoff we can name it as Automatic Rally (AR). By using these to extreme high of AR and low of SC we can draw a rectangle to have a better view on the consolidation area. After the dramatic push and pull of price, the market volume gradually decreasing followed by price having a contracting highs and lows, forming a classic contracting triangle, where we can see some of the lows are respecting the 2nd support line. Phase B: The end of contracting triangle followed by another zigzag wave of smaller degree, where it breaks the 2nd support line and creating the second lowest low which we can name it as Secondary Test (ST) that the selling volume is much smaller hence also creating a shallower negative CVD. Price then go up back to the 2nd support line and able to reach back to 100 SMA although still not able to candle close it on the first attempt but eventually able to close it on the second attempt. Price then going on a small rally creating an ascending channel of 5-wave leading diagonal and able to close above the 1st support line, the 200 EMA and even able to make a higher high. But the volume is still not enough to make a change of character breakout. Phase C: The mini rally is identified as the 1st wave of primary impulsive wave, so the reactionary move where the price breaking down the ascending channel, the 1st support line, 200 EMA and 100 SMA and going back down to the 2nd support line can be identified as wave 2. Most of phase C volume going under the Volume Mean Level, it is the lowest volume of all of the phases. Combination of multiple minor corrective waves creating a WXY wave and we can see the 2nd support line is holding the price quite well where it represents as Last Point of Support (LPS). Phase D: The volume and price gradually moving up and able to close above 100 SMA and 200 EMA, then going higher to 1st support line with higher volume to a point of Show of Strength (SOS) where a change of character breakout is formed and also breaking out from the box or the whole Trending Range. Phase D is the perfect time to make an entry. The identifying of the first two waves of an impulsive move also creating a high confidence that we are entering the wave 3 or we can also call it as the money wave. Phase E: Just enjoy the rally This whole chart actually representing a very textbook Wyckoff Theory of the 2nd Accumulation Model and we can also see in this chart the transition between corrective wave and motive wave of Elliot Wave Theory. In Phase A and the early Phase B, the corrective wave is on its end, where the rest of the Phase B to E we can see how the scaffoldings of early structure of an impulsive move is constructed. making a consolidating of accumulation before going a strong trending move. Wyckoff explains this transition of corrective wave to a motive wave in a beautiful way and surely we can also use it on the transition of motive wave to a corrective wave using the distribution model. This is just one variation where we can use Elliot and Wyckoff hand in hand in order to have a much better technical analysis on the market and maybe this combined analysis that I made on the above chart could be the best scenario to apply for both theories. Hopefully this helps to educate for anyone of you who read this post, thank you
INDEX:BTCUSDEducation
by derahmanov
WYCKOFF ACCUMULATION GBPUSDFor the past couple of days, GBPUSD has been ranging with some wide swings . Anytime price consolidates, we refer back to the Wyckoff's Theory to understand what's happening and where price is likely to head next. After the 3rd hit to support level, the pound finally dropped . We know the purpose of this drop and what happens next. However, the pound has now breached the 1.20 to 1.30 Quarter Points, which gets me thinking, will the pound reach the 1.75 LQP ? I sit on my hands with this one to see how price will play out. Beaucoup Out
Long
by BeaucoupPips
Bitcoin - Wyckoff Method Phase B ?Hi Traders, Investors and Speculators of the Charts 📈📉 Ev here. Been trading crypto since 2017 and later got into stocks. I have 3 board exams on financial markets and studied economics from a top tier university for a year. With this chart, we aim to identify the current phase of Bitcoin / BTCUSD / BTCUSDT by using the Wyckoff Method . The Wyckoff Method can be extremely technical and complicated, with many phases, sub-phases, sub sub phases etc. The four main phases of the market cycle are accumulation, markup, distribution, and markdown . On this specific chart, we're taking a look at the accumulation cycle . If we look at the two image examples provided and combine them with Fibonacci time cycles, Phase B could last up until September 2023, or towards Q4 of this year. What is means for BTC now, is that we can still see an extended period of range trading for the next few months. Here are some terms and definitions you may find helpful : PS—preliminary support - where substantial buying begins to provide pronounced support after a prolonged down-move. Volume increases and price spread widens, signaling that the down-move may be approaching its end. SC—selling climax - the point at which widening spread and selling pressure usually climaxes and heavy or panicky selling by the public is being absorbed by larger professional interests at or near a bottom. Often price will close well off the low in a SC , reflecting the buying by these large interests. AR—automatic rally - which occurs because intense selling pressure has greatly diminished. A wave of buying easily pushes prices up; this is further fueled by short covering. The high of this rally will help define the upper boundary of an accumulation TR. ST—secondary test - in which price revisits the area of the SC to test the supply/demand balance at these levels. If a bottom is to be confirmed, volume and price spread should be significantly diminished as the market approaches support in the area of the SC . It is common to have multiple STs after a SC . SOS - sign of strength, a price advance on increasing spread and relatively higher volume . Often a SOS takes place after a spring , validating the analyst’s interpretation of that prior action. LPS - last point of support, the low point of a reaction or pullback after a SOS. Backing up to an LPS means a pullback to support that was formerly resistance, on diminished spread and volume . On some charts, there may be more than one LPS , despite the ostensibly singular precision of this term. BU - “back-up”. This term is short-hand for a colorful metaphor coined by Robert Evans, one of the leading teachers of the Wyckoff method from the 1930s to the 1960s. Evans analogized the SOS to a “jump across the creek” of price resistance, and the “back up to the creek” represented both short-term profit-taking and a test for additional supply around the area of resistance. A back-up is a common structural element preceding a more substantial price mark-up, and can take on a variety of forms, including a simple pullback or a new TR at a higher level. Furthermore, a brief look at the phases: Phase A Marks the stopping of the prior downtrend. Up to this point, supply has been dominant. Selling climax ( SC ) occurs here. Phase B Institutions and large professional interests are accumulating at relatively low-prices in anticipation of the next markup. The process of institutional accumulation may take a long time (sometimes a year or more) and involves purchasing at lower prices and checking advances in price with short sales. Phase C It is in Phase C that the 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. Phase D If you've plotted the phases correctly, 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. Phase E Price begins to behave bullish as demand is in full control and the markup is obvious to everyone. Setbacks, such as shakeouts and more typical reactions, are usually short-lived. All of the above in mind, I believe we are currently still trading in Phase B of the Wyckoff Method Accumulation phase. This means that we may still test support zone / resistance zone multiple times, until a clear bottom has been established. This would need to be lower than the most recent bottom, and I still think the possibility exists of returning back to $13K levels. _______________________ 📢Follow us here on TradingView for daily updates and trade ideas on crypto , stocks and commodities 💎Hit like & Follow 👍 We thank you for your support ! CryptoCheck
by CryptoCheck-
31
EUR/USDWhat I see in the US is that the price broke down and reached an area of ​​higher demand. It took liquidity from the low and began an accumulation as I indicated in another projection. It continued to accumulate while slowly rising. It didn't give me any longs with good clear price action so I didn't do anything here. I take it as liquidity what it is doing, gaining strength and then going up. The price can continue to rise in this way. Or go down to take liquidity, perhaps to test the base a little more and then go up. If the price goes down and confirms a valid long, the longs are taken. We must see what the price does. I invite you to leave a comment and to check my social networks that are in my profile. There I post more ideas and trading stuff.
by rstradesuy
GBP/USDWhat I see in GU is that the price took the liquidity from the demand zone, from the low. It began to accumulate and headed bullish as I indicated could happen in another forecast. The price is reaching the supply area that eliminated the demand area for me. The price can give a valid sale in the area or above after taking liquidity from the already tested areas. Where the price confirms, a sale is taken if it is valid. In the zone or above. I invite you to leave a comment and to check my social networks that are in my profile. There I post more ideas and trading stuff.
by rstradesuy
📊 Wyckoff SchematicsThe 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 assessment should help you decide whether to be in the market at all and, if so, whether to take long or short positions. Use both bar charts and Point and Figure charts of the major market indices for Step 1. Select stocks in harmony with the trend. In an uptrend, select stocks that are stronger than the market. For instance, look for stocks that demonstrate greater percentage increases than the market during rallies and smaller decreases during reactions. In a downtrend, do the reverse – choose stocks that are weaker than the market. If you are not sure about a specific issue, drop it and move on to the next one. Use bar charts of individual stocks to compare with those of the most relevant market index for Step 2. Select stocks with a “cause” that equals or exceeds your minimum objective. A critical component of Wyckoff's trade selection and management was his unique method of identifying price targets using Point and Figure (P&F) projections for both long and short trades. In Wyckoff's fundamental law of “Cause and Effect,” the horizontal P&F count within a trading range represents the cause, while the subsequent price movement represents the effect. Therefore, if you are planning to take long positions, choose stocks that are under accumulation or re-accumulation and have built a sufficient cause to satisfy your objective. Step 3 relies on the use of Point and Figure charts of individual stocks. Determine the stocks' readiness to move. Apply the nine tests for buying or for selling (described below). For instance, in a trading range after a prolonged rally, does the evidence from the nine selling tests suggest that significant supply is entering the market and that a short position may be warranted? Or in an apparent accumulation trading range, do the nine buying tests indicate that supply has been successfully absorbed, as evidenced further by a low-volume spring and an even lower-volume test of that spring? Use bar charts and Point and Figure charts of individual stocks for Step 4. Time your commitment with a turn in the stock market index. Three-quarters or more of individual issues move in harmony with the general market, so you improve the odds of a successful trade by having the power of the overall market behind it. Specific Wyckoff principles help you anticipate potential market turns, including a change of character of price action (such as the largest down-bar on the highest volume after a long uptrend), as well as manifestations of Wyckoff's three laws (see below). Put your stop-loss in place and then trail it, as appropriate, until you close out the position. Use bar and Point and Figure charts for Step 5. 🔹PS — preliminary support, where substantial buying begins to provide pronounced support after a prolonged down-move. Volume increases and price spread widens, signaling that the down-move may be approaching its end. 🔹SC — selling climax, the point at which widening spread and selling pressure usually climaxes and heavy or panicky selling by the public is being absorbed by larger professional interests at or near a bottom. Often price will close well off the low in a SC, reflecting the buying by these large interests. 🔹AR — automatic rally, which occurs because intense selling pressure has greatly diminished. A wave of buying easily pushes prices up; this is further fueled by short covering. The high of this rally will help define the upper boundary of an accumulation TR. 🔹ST — secondary test, in which price revisits the area of the SC to test the supply/demand balance at these levels. If a bottom is to be confirmed, volume and price spread should be significantly diminished as the market approaches support in the area of the SC. It is common to have multiple STs after a SC. 🔹Test — Large operators always test the market for supply throughout a TR (e.g., STs and springs) and at key points during a price advance. If considerable supply emerges on a test, the market is often not ready to be marked up. A spring is often followed by one or more tests; a successful test (indicating that further price increases will follow) typically makes a higher low on lesser volume. 🔹SOS — sign of strength, a price advance on increasing spread and relatively higher volume. Often a SOS takes place after a spring, validating the analyst’s interpretation of that prior action. 🔹LPS — last point of support, the low point of a reaction or pullback after a SOS. Backing up to an LPS means a pullback to support that was formerly resistance, on diminished spread and volume. On some charts, there may be more than one LPS, despite the ostensibly singular precision of this term. 🔹BU — “back-up”. This term is short-hand for a colorful metaphor coined by Robert Evans, one of the leading teachers of the Wyckoff method from the 1930s to the 1960s. Evans analogized the SOS to a “jump across the creek” of price resistance, and the “back up to the creek” represented both short-term profit-taking and a test for additional supply around the area of resistance. A back-up is a common structural element preceding a more substantial price mark-up, and can take on a variety of forms, including a simple pullback or a new TR at a higher level. 🔹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 the public being filled by professional interests at prices near a top. A BC often coincides with a great earnings report or other good news, since the large operators require huge demand from the public to sell their shares without depressing the stock price. 🔹AR — automatic reaction. With intense buying substantially diminished after the BC and heavy supply continuing, an AR takes place. The low of this selloff helps define the lower boundary of the distribution TR. 🔹ST — secondary test, in which price revisits the area of the BC to test the demand/supply balance at these price levels. For a top to be confirmed, supply must outweigh demand; volume and spread should thus decrease as price approaches the resistance area of the BC. An ST may take the form of an upthrust (UT), in which price moves above the resistance represented by the BC and possibly other STs before quickly reversing to close below resistance. After a UT, price often tests the lower boundary of the TR. 🔹SOW — sign of weakness, observable as a down-move to (or slightly past) the lower boundary of the TR, usually occurring on increased spread and volume. The AR and the initial SOW(s) indicate a change of character in the price action of the stock: supply is now dominant. 🔹LPSY — last point of supply. After testing support on a SOW, a feeble rally on narrow spread shows that the market is having considerable difficulty advancing. This inability to rally may be due to weak demand, substantial supply or both. LPSYs represent exhaustion of demand and the last waves of large operators’ distribution before markdown begins in earnest. 🔹UTAD — upthrust after distribution. A UTAD is the distributional counterpart to the spring and terminal shakeout in the accumulation TR. It occurs in the latter stages of the TR and provides a definitive test of new demand after a breakout above TR resistance. Analogous to springs and shakeouts, a UTAD is not a required structural element: the TR in Distribution Schematic #1 contains a UTAD, while the TR in Distribution Schematic #2 does not. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
3
MACRO WYCKOFF/ HALVENING OBSERVATIONI just wanna share some of the things I worked on it's still incomplete, and still adding some of my analysis I used Wyckoff theory, pattern recognition(This cannot predict the future but it can help us define what can are the possible moves that btc will do) Observation : -Every 1st month of the day of 365 days before halvening, btc tends to show sos sign of strength.. then it starts showing SOW (SIGNS OF WEAKENESS) OR spring /st ("Springs or Shakeouts usually occur late within the trading range and allow the market and its dominant players to make a definitive test of available supply before a markup campaign will unfold. If the amount of supply that surfaces on a break of support is very light (low volume ), it will be an indication that the way is clear for asustained advance. Heavy supply here will usually mean a renewed decline. Moderate volume here may mean more testing of support and to proceed with caution. The spring or shakeout also serves the purpose of providing dominant interests with additional supply from weak holders at low prices.")similar to smc obj -Another thing is that every havening, the bull run tends to cut the percentage to half each halvening using measurement from bottom to top of the uptrend bull(2000++% 1st havening)2nd reaccumulation (1000++%) (500++%) 2nd halvening) (250++% 3rd halvening) if by any chance it will half again I'm expecting a 125%++ percentage which will hit to 150Kvalue. -Are we still going to have a spring? then we reaccumulate like what happened to the 3rd halvening? or other schematics of accumulation trading range phases? - Every distribution schematic it always level out before the break out (before PSY "Preliminary Supply"(distribution side) or the end (retest of PHASE E) of accumulation side) -Spring/ stb level always has the same level of a previous spread out before the phase of preliminary support -Like the 2nd or 3rd halvening or re accumulkation if it doesn't hit the top or the UTAD level of distribution it tends to create re accumulation. Thank you. DYOR 1st halvening - 2nd halvening - 3rd halvening - 1hr distribution -
INDEX:BTCUSD
by markdemesa99
GBPUSD can continue to rise and break of resistance areaHello traders, I want share with you my opinion about British Pound. I decided to update the previous idea for you. We can see on the chart that the British Pound has achieved its targets and moved into the phase D. Price re-tested the resistance area, from which it bounced and decreased, where it formed the last points of support(LPS). After the formation of LPS, the price continue move up and is now below the resistance area. I think the price can continue to rise, break through the resistance areas, and continue to move upwards. So as targets for the British pound, I see the resistance area 1.2130-1.2150 and resistance level 1.2265. Please share this idea with your friends and click Boost 🚀
Long
by LegionQ8
12
#DENT Wyckoff Based Analysis#Wyckoff Analysis for #DENT #DENTUSDT 3% risk 10-15% account gain Entry 0.001195 SL 0.000999 Target 0.0018-0.002 Perfect Wyckoff Based Chart If we see a SOS back above the range here it should do well. The price needs to get back above the Resistance defined by the "AR" Automatic Rally that followed the SC (Selling Climax), Once price has confirmed back above this area at 0.001235 we are very likely to start the next growth (Phase E) confirmed by another SOS (Sign of Strength) with high buying volume signature. See my related idea for a further understanding of the #Wyckoff method of analysis.
Long
by Worth_The_Ri5k
STG possible upsideSTG seems to form a Wyckoff accumulation price action. At this moment, it holds quite well the current level $1.03. In my opinion, one can have two potential LONG setups. Set-up 1: if STG hold the current level while BTC could down as much as $23000. Set-up 2: if STG cannot hold the current level, and go down to the the long-term trendline. Target will be the resistance at AR (high range of the blue box). Stop-Loss would be -5% from support levels. In this context where BTC is going down, this is a high-rish trade but with good R:R. You can check my analysis for BTC in the link below for possible reaction of BTC in short-term.
by evasivesteering
2
FCPO 27 Feb 2023 : Spring or SoW?Last week : 1. Price retest again the UT level at the same supply zone level before going back down again. 2. Price stop at EMA50 30min and Mid channel 3. SBO continues a downtrend after the FCPO market close down almost 2.45%. Expectation : 1. We expect CPO to follow the SBO gap down to 2.4%. 2. Price will break mid-channel and possibly lower channel. 3. When the price test/breaks the lower channel, we expect the price to create SoW or Spring. Planning : 1. For the Wyckoff trader, we did not expect entry during Spring/SoW. We will take a chance during ToS formation or LPS/LPSY formation. Wait for the price reaction at this point. 2. However, for 5min TF, we can find any trading opportunities for a short-term trade. 3. Monitor the 4100 support level. If clear this level, the price might test the 4030 level. 4. If the price still sustains inside the channel and TR, possible to retest fibo 50 or close gap? Below is the expectation from SBO
MYX:FCPO1!Short
by ArifHasbollah
After possible fake breakout support GBP/USD can begin move upHello traders, I want share with you my opinion about British Pound. Looking at the graph, we can observe how is formed the accumulation scheme by Wyckoff. We see how the price enters the phase A, creates preliminary support (PS) that indicates that some buyers are showing up, but they are not enough to stop the movement. The selling climax (SC) is formed by intense sales, as the excess supply is absorbed by the buyers, the strong drop quickly turns into a rebound or an automatic rally (AR). Next, we see a secondary test(ST) that is tested in a truly downtrend ended. Further, the price goes into phase B. In fact, phase b is the stage at which a composite person accumulates the largest number of assets. During the phase B, there may be numerous secondary tests and in some cases they can produce higher highs (bull traps) and lower lows (bear traps) with respect to (sk) and (ar) phase A. Currently the price has moved into the phase C. This phase is a typical period of accumulation of assets, also called SPRING. It often acts as the last bear trap before the market begins to form higher lows. The bearish trap is prompting retail investors to give up their assets. Now the price is above the support level 1.1930 and I think the price can make a fake breakout and begin move up. So for the British Pound, I see 2 goals, resistance area (1) 1,2025-1.2045 and resistance area (2) 1.2130-1.2150. Please share this idea with your friends and click Boost🚀
Long
by LegionQ8
4