Wyckoff For Dummies (Including the Author)Hello,
I am a dummy, so often it takes a long time for things to sink into my thick skull.
Loss of money (or failure to make mony) is often where I learn the best.
Instead of learning from my mistakes I enjoy repeating them many times...just to make sure.
Anyway there are four important points in common price action (FOR TRADERS), and they have acronyms:
PSY - Preliminary Supply
BC - Buying Climax
AR - Automatic Reaction
ST - Secondary Test
Go ahead and look this stuff up and get all geeky with it, but I find waiting for a breakout and understanding these four points is important.
On most charts the pattern is distorted; this chart looks damn near perfect for a Wyckoff. You might need to use longer timeframes to see a Good chart that fits the model.
After the AR when the price comes back up again near the BC; this is the Secondary Test or ST--its time for me to get out because I lose money after that point if I play around. Also can sell half here just in case it rockets up because of reality.
Good luck and regards,
Dummy