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Wyckoffdistribution

Wyckoff DistributionMy assessment of the current consolidation pattern for the S&P 500. 15 minute chart so just under the limit for publication so this will pan out fast. Buying climax occurring on higher volume and subsequent rallies on lower volume. UTAD is testing demand and looks like there was a wide range price bar with low volume which may be signaling that demand is weakening. If price reaches lower support lines then higher probability price will continue to go down. If price breaks above resistance then likely see another peak rally. Wave count looks a little off and UTAD may just be a wave 3 peak. Will know soon though with the short time frame evaluated.
CME_MINI:ES1!
by HedgehogLanding
US30/USD Shorts from 34600.0 down towards 33800.0My bias for US30 currently is for a bit more upside in order to mitigate the 22hr supply zone or the 19hr, both are apart of a key weekly supply level. From this we will expect a sweep of the asian high as well as a consolidation before entering to show that price is slowing down and buys have now become exhausted. We will then wait for a wyckoff distribution and a CHOCH on the lower time frame before we execute our sell positions. As price has been very impulsively bullish I am expecting a retracement for sure hence my bias. My confluences for US30 shorts are as follows: - Price approaching key weekly supply level that caused a CHOCH to the downside. - There's magnets below our POI that need to be taken in the form a liquidity sweep. - There a lot of imbalances below as well as deeper demand levels for price to mitigate. - Price has been moving very bullish with minimal pull backs so price needs to come down. - For price to continue in bullish trend it needs to react off a stronger level of demand. - 22hr supply has also swept liquidity, good sign that the zone will hold. P.S. I am overall bullish however, as we are approaching a key supply I can see a short term sells playing out in order to fill the imbalances below and mitigate a deeper level of demand. This makes sense because us as traders, we ideally want to buy from a discounted price. As of this week we do have CPI coming on Tuesday, I would personally wait after just to see how price reacts from this major news event then make my move. Trade safe and hope you guys have a good week ahead!
OANDA:US30USDShort
by Hassan_fx
2
GBPUSD Shorts - A grade setup blueprintThis is how I would execute my trades after I analyse on the higher time frames to give me the perfect A grade setup that I go for once price enters my POI. On Sunday I posted a GBPUSD break down of price reacting off the 6hr supply, I mentioned that sells could possibly play out on a Monday which it did, so now I'm going to show you guys how my confluences generates an edge for me to execute these trades. Firstly once price mitigates my 6hr Supply zone I would monitor price and wait for the asian high to get swept first before I validate a potential sell. Then I would wait for a clean CHOCH on the 10 or 15min to validate my UTAD (upthrust after distribution.) Once a CHOCH is formed it would typically leave a last point of supply (LPS), that will have a clean unmitigated order block that would have caused the expansion to happen. If it leaves an imbalance during this process it's usually a very good sign that price should come and retrace back to the LPS. After I have my OB marked out I would set my sell limit In which I would then wait for price to come back and tap me in. From this point I would have already have pre defined my risk, written the confluences and set a take profit target for my trade to hit (in this case we will be targeting the touch of the 4hr imbalance as that acts as a magnet for price to come towards.) In this specific scenario as you can see price didn't come back to the original 10min OB I had marked out. Price then decided to create a small BOS to the downside leaving another LPS for me to enter from which was the 6min OB. From there price came back to tap that 6min OB and literally melted towards our take profit target for a 1:15 RR with minimal drawdown. P.S. when price entered my POI I would make sure that majority of the reversal magnets are eliminated i.e. any trendline liquidity, equal highs/lows, and asian highs/lows, so that price can move swiftly in our desired direction. Hope you guys found this post insightful! as I wanted to show how I would typically execute my trading strategy using Wyckoff to catch big RR moves that enter my Higher time frame POI's.
Short
by Hassan_fx
1
Understanding Bitcoin Price MovementUnderstanding Bitcoin Price Movement through Wyckoff's Theory Richard Wyckoff, a legendary figure in the world of trading, left us with invaluable insights into price action and market behavior. His principles, outlined in "Charting the Stock Market," lay the foundation for understanding how markets move. Let's delve into two pivotal rules from Wyckoff's playbook: Rule 1: The Market's Unique Behavior Wyckoff's first rule reminds us that the market is a dynamic entity. It never repeats the same price action exactly as in the past. Each moment in the market is distinct, shaped by a multitude of factors. Recognizing this uniqueness is essential. Rule 2: Comparative Analysis The second rule dovetails with the first. It emphasizes that the true analytical value lies in comparing current price action with historical behavior. By drawing parallels and contrasts, we can extract meaningful insights into market trends. These two rules serve as the cornerstone for comprehending the Wyckoff Market Cycle theory, which remains influential in modern trading practices. Wyckoff Market Cycle Theory Wyckoff introduced a groundbreaking theory based on price action, defining four distinct stages within a price cycle: 1. Accumulation Phase In this initial stage, institutional demand rises, and bulls begin to assert control. However, price action remains relatively flat, resembling a range-bound structure. Identifying higher lows within this range signals the Accumulation phase, hinting at an impending bullish move. 2. Markup Phase The second stage, Markup, sees bulls gaining enough momentum to breach the upper boundary of the range. This breakthrough signifies the emergence of a bullish trend. 3. Distribution Phase Distribution is the third stage, characterized by bears attempting to regain control. Much like the Accumulation phase, price action remains flat, but with a different twist. The sustained failure to establish higher bottoms hints at a looming selloff, depicted by lower tops. 4. Markdown Phase The final stage, Markdown, marks the onset of a downtrend following the Distribution phase. It signifies that bears have gained the upper hand, driving prices lower. Confirmation of the Markdown occurs when price action breaks below the lower boundary of the horizontal distribution channel on the chart. The beauty of Wyckoff's theory is its cyclical nature. After the Markdown phase, the entire process restarts with Accumulation, offering traders a framework to navigate the complexities of Bitcoin price movement. Understanding these principles allows us to discern patterns in Bitcoin's price action and make more informed trading decisions. By embracing the wisdom of Richard Wyckoff, we can navigate the ever-evolving landscape of cryptocurrency trading. 🫶 Thanks for Your attention, sincerely yours, Kateryna. Wishing You successful trades and unforgettable adventures in the world of cryptocurrencies and the financial market!
BINANCE:BTCUSD
by RocketBomb
7
USDCAD sept 27 2023 sellAs you can see, there is a shift in market structure 1H TF. Before going further, there is also same scenario if you checked daily TF---> BOS and then going lower. I waited for the level highlighted with institutional candle due to the fact that it sponsored the price to go lower. Upon checking I also see BOS following validity structure :) After that I go to lower timeframe 15min ( where I would normally enter). RR: 1:10 wyckoff distribution with validity/evidence. You can also check the chart for more information. Happy learning!
Short
by glyrad
1
Sept 13 2023 Sell trade USDCADIF you look at daily TF---> you can see a supply being mitigated. Go down to lower Tf like 1H and you can clearly see a shift in market structure validated by HTF supply. I waited for supply to introduced in lower time frame to have an entry. 15 min is my favorite spot to have better Risk to Reward Ratio. As you can see there is bearish market structure. I wait for my IC to have a valid move and after it , enter at mitigation. RR: Aiming for 1:9 let us see if I can catch it. wyckoff distribution in action.
Short
by glyrad
3
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
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