Introduction: ----------------------------------------------------------- In the time period of April in 2021 Bitcoin reached its local high of roughly US $65,000 per coin, shortly after when May came along many social channels quickly lit up with the now infamous “Wyckoff Distribution Schematic” (This was one popular video that described it here:...
What are Supply and Demand Zones? ▷ Demand Zone (Accumulation Area): Accumulation comes from a Latin word meaning to increase something over time. A strong uptrend can only exist if buyers outnumber sellers. During a trend, price moves up until enough sellers enter the market to absorb the buy orders. The origin of strong bullish trends is called an...
THESE ARE TWO THEORIES. THE FIRST IS ACCORIDNG TO WYCKOFF, THE SECONS IS THE DOW THEORY 1) Accumulation begins with the price stopping and the formation of support, followed by the end of sales, the opposite level is gradually formed - resistance and the price goes into a sideways movement. It has a name - Accumulative flat or consolidation. Dow says that...
Any feedback and suggestions would help in further improving the analysis! If you find the analysis useful, please like and share our ideas with the community. Keep supporting :) In this post, we have attempted to cover some of the major institutional accumulations that has happened in Bitcoin since June 2020. Bitcoin's rise over the past 1 year has been...
Volume is in the foreground once again. One predictor of if a trend will continue, versus if price movement is a momentary aberration, is to see what volume is doing during rises and pullbacks. For us to say that the up-trending market action will continue it is ideal to see above average buyer volume on the leg candles (the large green/white candles) followed by...
The accumulation area represents a period of buying, typically by institutional buyers, while the price remains fairly stable.
Trends rarely reverse instantly. It took 3 days to print this reversing pattern. It is always good to have a real world example of Wyckoff accumulation at hand. Including the volume! In this case the main stopping power occurred in the Preliminary Support. PS - Preliminary Support SC - Selling Climax AR - Automatic Rally ST - Secondary Test SOS - Sign of...
How to trade a temporary pullback and a breakout gap? Some security will make a temporary pullback before making a new high with a breakout gap. How to trade a temporary pullback? A trader may be bearish during the temporary pullback formation. A trader may consider going short during this pattern formation or the trader may consider waiting to avoid...
PART 1. ACCUMULATION CYCLE Wickoff Theory The Wyckoff theory describes many aspects and rules of trading. The main problem of the theory is the demand/supply balance. It is widely known that this balance is the key reason of some price action on the market. Today we are going to consider the Wickoff Cycle pattern. Let's start with the accumulation one. ...
Suggested accumulation zone: $5,910 - $8,630. This is where the bulk of the volumes lies in the past 27 months. VPVR shows point of control as $6,263 from the rally in September 2017 from mid $3ks until January 2020. Declining volume implies a breakout in the not so distant future. Above $11,500 there is declining volume. DYOR.
Xiaomi stock price jumped across the creek as the company announced the launched its low cost 5G phone today. Related Article Today's action is different from previous rallies as price broke above a significant resistance level that we call The Creek, a resistance level within the accumulation set-up. With this break out, we expect stock price to move into Mark...
PS - Preliminary Support (buys provide a bounce to slow move down) SC - Selling Climax (Buys absorb remaining sells , end of panic sell off) AR - Automatic Rally (Price rise caused by volume buys and lack of sells on the orderbook) ST - Secondary Test (retest of support, may occur multiple times) Shake Out - Volume sell to drop price encouraging inexperienced...
Gold is expected to be trading in re-accumulation instead of distribution in view of a "Spring" event. Spring is a exhaustion of supply, indicating demand is expected to be back in control. A breakout from the creek (resistance), we will expect Gold to trade further. 1st TP: 1,550 level (Previous high +2.618% Fibo) 2nd TP: 1,600 (Whole Number Effect + 4.236$...
Screenshots will be better than words: I only trade tops & bottoms (accumulation & distribution, supply & demand), and I select good ones. The "rectangle" type is my favorite. "Continuation flag" they said. I always go opposite. Use other filters, the price action pattern is just here to pull the trigger. Use stop losses.
I have mentioned several times in my post that when a pair didn't reach its minimum range based on the 20-day average daily range, the market will compensate that "pips shortages" in the following day, in two or three days or the following week. These small ranges are more common in a flat market, where it is in an accumulation phase. "Ranging market begets...
Call me a conspiracy theorist all you want but the fact is price look for liquidity. Liquidity exists in price zones that have a lot of participation. Obvious levels and obvious patterns are liquidity pool haven. No, I do not have a "solution" or steps to avoid this phenomenon. I have my own personal ways to navigate it. Is it the best? It is the best for me...
Accumulation taken place in late 2018 until February 2019 when the mark-up phase began to develop. Lesson: forget about the news, earnings , etc. This is a pure example of stock manipulation. Check volume for selling climax, spring and earnings report like the one on the 30th January to break the range. Well played by the composite operator. @Mikephicc
POSITION SIZING: 27 QTY PER LAKH