Hi guys,
This is my first time sharing an idea on Tradingview.
I analyze and trade the markets with the Wyckoff method and price action.
I think oil is accumulating because fase A of the Wyckoff method just completed.
In fase A we want to see a change of character in trend.
In this case (long) it consists of a Preliminary Support, Selling climax, Automatic reaction and a Secondary Test.
The preliminary support always fails. This we see on the chart.
On the 20.00 level It tries to find support and it wants to push prices up, but eventually fails and comes down
to the 19.45 level, the Selling climax. The climax sets the bottom of the range.
Followed by an Automatic reaction, which sets the top of the range.
Now we arrive at the most important part of the Wyckoff method, which is the Secondary test in Fase A of the method.
The Secondary test determines (in this case) if the market is in accumulation or re-distribution.
It all depends on the character of the Secondary test.
In distribution we want to see a candle/candles of high volume that test or pass the Selling climax.
In accumulation we want to see candles in a corrective nature and low volume just above the Selling climax or Preliminary support.
We see that fase A is completed and that the Secondary is of low volume, corrrecting and found support on/around the 20.00 level,
which is also preliminary support.
Now were entering fase B. In this fase the market makers want to absorb stock. They do this by testing the range high and low.
In some cases it test level outside the range. This indicates a sign of strength or weakness.
The 30.00 level is an untested level and is outside the range. This could be a perfect target for this long.
It would also be a sign of strength because it would then test a level outside the range.
I think we are accumulating, it's good moment for a long, target around 30.00 level.
This is my analysis guys. I hope you enjoyed and/or could help some of you.
Stay safe and wish you well in trading.
This is my first time sharing an idea on Tradingview.
I analyze and trade the markets with the Wyckoff method and price action.
I think oil is accumulating because fase A of the Wyckoff method just completed.
In fase A we want to see a change of character in trend.
In this case (long) it consists of a Preliminary Support, Selling climax, Automatic reaction and a Secondary Test.
The preliminary support always fails. This we see on the chart.
On the 20.00 level It tries to find support and it wants to push prices up, but eventually fails and comes down
to the 19.45 level, the Selling climax. The climax sets the bottom of the range.
Followed by an Automatic reaction, which sets the top of the range.
Now we arrive at the most important part of the Wyckoff method, which is the Secondary test in Fase A of the method.
The Secondary test determines (in this case) if the market is in accumulation or re-distribution.
It all depends on the character of the Secondary test.
In distribution we want to see a candle/candles of high volume that test or pass the Selling climax.
In accumulation we want to see candles in a corrective nature and low volume just above the Selling climax or Preliminary support.
We see that fase A is completed and that the Secondary is of low volume, corrrecting and found support on/around the 20.00 level,
which is also preliminary support.
Now were entering fase B. In this fase the market makers want to absorb stock. They do this by testing the range high and low.
In some cases it test level outside the range. This indicates a sign of strength or weakness.
The 30.00 level is an untested level and is outside the range. This could be a perfect target for this long.
It would also be a sign of strength because it would then test a level outside the range.
I think we are accumulating, it's good moment for a long, target around 30.00 level.
This is my analysis guys. I hope you enjoyed and/or could help some of you.
Stay safe and wish you well in trading.