Wyckoff Analysis:
First consolidation range showed clear volume increase to show us selling cimax. Volume then decreased alongside change of character on the rally - suggesting a SOS (sign of strength) in an accumulation range. This is confirmed with a spring that has the peak volume of the range. I entered long on the test after the spring.
Towards the end of the first markup, price then stopped rallying, dropped slightly and then re-rallied without breaking the previous peak, alongside a non-significant increase in volume this suggested a re-accumulation range is forming, and if not, at the very least a new consolidation range. Note that this time, it is non-horizontal/downward/weak. The market eventually left the markup channel which is indicative of a new consolidation range. We then see decreasing volume + change of character to the upside leading to a high volume dip suggestive of a spring and confirming of re-accumulation. I scaled in my long after this spring.
TP area was calculated using a rudimentary 3 x trading range added to the top of the range instead of point and figure charts.
Once I TP'ed the market showed that this area was the right place to do it with the formation of a new consolidation here and a reaction off the markup channel after leaving it.
All in all, a great trade that went 100% according to plan.
Drawdown: few pips.
Profit: 485 pips (cumulative with scale in).
Will wait to see if market distributes or accumulates from here.
Screenshot of trade:
https://goo.gl/photos/hhrNb8u1zcNN6Yqg7
First consolidation range showed clear volume increase to show us selling cimax. Volume then decreased alongside change of character on the rally - suggesting a SOS (sign of strength) in an accumulation range. This is confirmed with a spring that has the peak volume of the range. I entered long on the test after the spring.
Towards the end of the first markup, price then stopped rallying, dropped slightly and then re-rallied without breaking the previous peak, alongside a non-significant increase in volume this suggested a re-accumulation range is forming, and if not, at the very least a new consolidation range. Note that this time, it is non-horizontal/downward/weak. The market eventually left the markup channel which is indicative of a new consolidation range. We then see decreasing volume + change of character to the upside leading to a high volume dip suggestive of a spring and confirming of re-accumulation. I scaled in my long after this spring.
TP area was calculated using a rudimentary 3 x trading range added to the top of the range instead of point and figure charts.
Once I TP'ed the market showed that this area was the right place to do it with the formation of a new consolidation here and a reaction off the markup channel after leaving it.
All in all, a great trade that went 100% according to plan.
Drawdown: few pips.
Profit: 485 pips (cumulative with scale in).
Will wait to see if market distributes or accumulates from here.
Screenshot of trade:
https://goo.gl/photos/hhrNb8u1zcNN6Yqg7
Comment:
Can you see the change in character here? Biggest decline since original markup started - this tells us unequivocally that something different is happening. Another words, high probability that we will have a new consolidation range here. Secondary test + conclusion of Phase A + start of Phase B will tell us angle/strength of the range.
Comment:
wrong pic above, this one has the declines painted to make it easier to see:
Comment:
Notice overall markup channel being respected all the way to TP. Excited to see what this new change of character brings.
Comment:
We may be seeing another consolidation range at a downward/weak angle.