LINKUSDT: May Not Be Our Transition From Phase D to Phase E Yet.
Hi Everyone! Hope everyone is having a good weekend... ; ) The purpose of this video is to point out we may not be ready to make a transition out of Phase D to Phase E yet. Are we still experiencing upward pressure at the moment? Sure... Does this mean our upward pressure is going to send us to the next 1.618 FIB Extension range now? No... WHY? Because we need to be aware of what "normally" occurs in Phase D of a Wyckoff Accumulation Schematic; which was explained in the video. Is it possible to avoid the "norm" and transition from Phase D to Phase E with an Up-Thrust (Sign of Strength) to the next 1.618 FIB Extension Range? Sure, it's possible but NOT GUARANTEED.
I'm remaining NEUTRAL on this one at present because I do not want to give the impression we are going to the moon just yet. Should you accumulate? My opinion is one should have already been accumulating using Dollar Cost Averaging Technique. Can you take advantage to buy another dip if we do not see a Sign of Strength to transition out of Phase D to Phase E? Sure... However, you may have to wait a bit and it can be risky to wait for a dip that may not fall as deep as you would like. Hence, dollar cost averaging technique.
Happy Trading and Stay Awesome!
David
I'm remaining NEUTRAL on this one at present because I do not want to give the impression we are going to the moon just yet. Should you accumulate? My opinion is one should have already been accumulating using Dollar Cost Averaging Technique. Can you take advantage to buy another dip if we do not see a Sign of Strength to transition out of Phase D to Phase E? Sure... However, you may have to wait a bit and it can be risky to wait for a dip that may not fall as deep as you would like. Hence, dollar cost averaging technique.
Happy Trading and Stay Awesome!
David
Comment:
UPDATE:
LINKUSDT Wyckoff Accumulation Schematic Progress:
Here's a link for BASIC information on Wyckoff Method: school.stockcha...ts.com/doku.php?id=market_...
LINKUSDT Wyckoff Accumulation Schematic Progress:
Here's a link for BASIC information on Wyckoff Method: school.stockcha...ts.com/doku.php?id=market_...
Comment:
UPDATE:
Here is the History of Bitcoin Using Wyckoff Method for you to get an idea of what's in store for us in Phase E. You will see three (3) periods of "Phase E" and we will soon see a fourth (4th) Phase E for Bitcoin:
Here is the History of Bitcoin Using Wyckoff Method for you to get an idea of what's in store for us in Phase E. You will see three (3) periods of "Phase E" and we will soon see a fourth (4th) Phase E for Bitcoin:
Comment:
UPDATE:
Phase A marks the stopping of the prior downtrend. Up to this point, supply has dominanted. The diminishing of supply is evidenced when we see 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 coins 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 coins; as
well as short-covering, typically ensues. A successful secondary test (ST) in the area of the Selling Climax will usually show less selling than previously and a narrowing of
spread with decreased volume. The Second Test generally stops 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; but not always. The lows of the Selling Climax and the Second Test and the high of the Automatic Rally set the boundaries of the Trading
Range. Horizontal lines may be drawn to help focus attention on market behavior within that Trading Range. Sometimes the downtrend may end less dramatically, WITHOUT a
climactic price drop and increased volume action. In order to provide a more distinct charting landscape with a better indication that large operators have definitively initiated
accumulation; we prefer to see the Preliminary Support, Selling Climax, Automatic Rally and Second Test of Support.
When in a re-accumulation Trading Range (which occurs during a longer-term uptrend of Phase E), the points representing PS, SC and ST are not evident in Phase A. Rather,
in such cases, Phase A resembles what’s more typically seen in distribution rather than accumulation. Phases B-E generally have a shorter duration and smaller amplitude in
Re-Accumulation, but are ultimately similar to, those in the primary accumulation base. This information is from school.stockcharts.com website.
Phase A marks the stopping of the prior downtrend. Up to this point, supply has dominanted. The diminishing of supply is evidenced when we see 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 coins 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 coins; as
well as short-covering, typically ensues. A successful secondary test (ST) in the area of the Selling Climax will usually show less selling than previously and a narrowing of
spread with decreased volume. The Second Test generally stops 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; but not always. The lows of the Selling Climax and the Second Test and the high of the Automatic Rally set the boundaries of the Trading
Range. Horizontal lines may be drawn to help focus attention on market behavior within that Trading Range. Sometimes the downtrend may end less dramatically, WITHOUT a
climactic price drop and increased volume action. In order to provide a more distinct charting landscape with a better indication that large operators have definitively initiated
accumulation; we prefer to see the Preliminary Support, Selling Climax, Automatic Rally and Second Test of Support.
When in a re-accumulation Trading Range (which occurs during a longer-term uptrend of Phase E), the points representing PS, SC and ST are not evident in Phase A. Rather,
in such cases, Phase A resembles what’s more typically seen in distribution rather than accumulation. Phases B-E generally have a shorter duration and smaller amplitude in
Re-Accumulation, but are ultimately similar to, those in the primary accumulation base. This information is from school.stockcharts.com website.
Comment:
UPDATE:
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).
This involves purchasing coins at lower prices and checking advances in price with short sales. There are usually multiple STs during Phase B but not always; as well as
upthrust-type actions at the upper end of the Trading Range. 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 Trading Range tends
to diminish. Once it appears that supply is likely to have been exhausted, the coin is ready for Phase C. This information is from school.stockcharts.com website.
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).
This involves purchasing coins at lower prices and checking advances in price with short sales. There are usually multiple STs during Phase B but not always; as well as
upthrust-type actions at the upper end of the Trading Range. 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 Trading Range tends
to diminish. Once it appears that supply is likely to have been exhausted, the coin is ready for Phase C. This information is from school.stockcharts.com website.
Comment:
UPDATE:
Phase C: Is when the coin 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. We may see Wyckoff “Spring;” which is usually (but not always) a price move below the support level of the Trading Range (established in Phases A and B) that
quickly reverses and moves back into the Trading Range. 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 the coin is likely ready to move up.
So, this would be a good time to initiate at least a partial long position. The appearance of a “Sign of Strength” shortly after a “Spring” (shakeout) validates the analysis.
It’s important to note that testing of supply can occur higher up in the Trading Range without a spring or shakeout; when this occurs, the identification of Phase C can be
very challenging. This information is from school.stockcharts.com website.
Phase C: Is when the coin 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. We may see Wyckoff “Spring;” which is usually (but not always) a price move below the support level of the Trading Range (established in Phases A and B) that
quickly reverses and moves back into the Trading Range. 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 the coin is likely ready to move up.
So, this would be a good time to initiate at least a partial long position. The appearance of a “Sign of Strength” shortly after a “Spring” (shakeout) validates the analysis.
It’s important to note that testing of supply can occur higher up in the Trading Range without a spring or shakeout; when this occurs, the identification of Phase C can be
very challenging. This information is from school.stockcharts.com website.
Comment:
UPDATE:
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. The BU/LPS in this phase is an excellent place to initiate or add to profitable long position.
Phase E: In Phase E, the asset 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
of both profit-taking and acquisition of additional coins (“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.
This information is from school.stockcharts.com website.
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. The BU/LPS in this phase is an excellent place to initiate or add to profitable long position.
Phase E: In Phase E, the asset 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
of both profit-taking and acquisition of additional coins (“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.
This information is from school.stockcharts.com website.
Comment:
UPDATE:
In case you did not know: When reading the "description" of what is going on in each Phase of a Wyckoff Accumulation Schematic, you can find the meaning of the abbreviations in either one of my charts (above).
Here it is here as well:
ABREVIATION DEFINITIONS:
AR = Automatic Rally
A.Re. = Automatic Reaction
BC = Buying Climax
BU = Back-Up
BU/LPS = Back Up / Last Point of Support
LPS = Last point of Support
LPSY = Last Point of Supply
PS = Preliminary Support
PSY = Preliminary Supply
SC = Selling Climax
SOS = Sign of Strength
SOW = Sign Of Weakness
SR = Simple Rally
ST = Second Test
TR = Trading Range
UT = Up Thrust
UTAD = Up Thrust After Distribution
In case you did not know: When reading the "description" of what is going on in each Phase of a Wyckoff Accumulation Schematic, you can find the meaning of the abbreviations in either one of my charts (above).
Here it is here as well:
ABREVIATION DEFINITIONS:
AR = Automatic Rally
A.Re. = Automatic Reaction
BC = Buying Climax
BU = Back-Up
BU/LPS = Back Up / Last Point of Support
LPS = Last point of Support
LPSY = Last Point of Supply
PS = Preliminary Support
PSY = Preliminary Supply
SC = Selling Climax
SOS = Sign of Strength
SOW = Sign Of Weakness
SR = Simple Rally
ST = Second Test
TR = Trading Range
UT = Up Thrust
UTAD = Up Thrust After Distribution
Comment:
UPDATE:
A look at the Weekly Time Frame to point out THERE IS A CHANCE to see a "Sign of Strength" (SOS) before year end. If we do see a SOS, our target would be $38.50 to $41.00
A look at the Weekly Time Frame to point out THERE IS A CHANCE to see a "Sign of Strength" (SOS) before year end. If we do see a SOS, our target would be $38.50 to $41.00
Comment:
UPDATE:
Comment:
UPDATE:
In case you haven't noticed, I'm pointing out how we use our indicators to determine WHEN a specific EVENT within a PHASE of a Wyckoff Schematic has a chance of occurring. Once an EVENT is actually confirmed and in progress, we can also see when we are approaching the end of that particular EVENT by "exhaustion" to take appropriate steps as a Swing Trader.
I have NOT been going into this much detail throughout the process of our Wyckoff Accumulation Schematic. However, I will be doing this on a consistent basis on another platform.
Stay Awesome!
David
In case you haven't noticed, I'm pointing out how we use our indicators to determine WHEN a specific EVENT within a PHASE of a Wyckoff Schematic has a chance of occurring. Once an EVENT is actually confirmed and in progress, we can also see when we are approaching the end of that particular EVENT by "exhaustion" to take appropriate steps as a Swing Trader.
I have NOT been going into this much detail throughout the process of our Wyckoff Accumulation Schematic. However, I will be doing this on a consistent basis on another platform.
Stay Awesome!
David
REPEAT: Am I making a flat statement; saying, "We are not going to see a "Sign of Strength" (SOS) yet? NO... This is the time for Re-Accumulation for sure... Because this is what we normally do in Phase D of a Wyckoff Accumulation Schematic. What we do NOT "know" is if the Composite Group(s) will transition us out of Phase D to Phase E during this current period of upward pressure. We MIGHT have to wait until the NEXT period of sustained upward pressure.
If it ends up we do see an Up-Thrust resulting in a Sign of Strength (SOS), then hopefully you have already accumulated and able to take advantage on the next pullback.