Phase A: Phase A marks the stopping of the prior downtrend. Up to this point, supply has been dominant. The approaching diminution of supply is evidenced in 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 shares from the public to...
PS—preliminary support, where substantial buying begins to provide pronounced support after a prolonged down-move. Volume increases and price spread widens, signaling that the down-move may be approaching its end. SC—selling climax, the point at which widening spread and selling pressure usually climaxes and heavy or panicky selling by the public is being absorbed...
Was trying to explain Wyckoff to someone and so I explained it best I could then gave them a standard Wyckoff diagram. After that picked a random coin and looked at different time frames, and was able to spot a Wyckoff cycle. I marked up the chart with Wyckoff annotations and since I spent the time doing it I figured I'd share it to see if it helps anyone. This...
Now as of recently I have become submerged into Elliott wave theory. It helps me define order flow on a fractal level and with the implementation of certain other order flow concepts, I can then define the intent of order flow between sessions. Elliott wave is fundamental in understanding market structure. Impulses and Corrections are fundamental in driving...
A brief explanation of the Wyckoff Distribution Schematic on the 1hr Chart What is it? The distribution is sideways and a range-bound trading period. It usually occurs after a prolonged uptrend. This is the trading zone where big players build short positions or distribute long positions and wash out retail traders. How I personally apply it I typically...
A brief explanation of the Wyckoff Accumulation Schematic on the M15 Chart What is it? The Wyckoff accumulation phase is a sideways and range bound period that occurs after a prolonged downtrend. This is the area where larger players try to build positions. How I personally apply it I typically perform top-down analysis starting with the Daily chart and...
When you understand the Wyckoffian phases of the market, you can determine when to be in or out of the market. You begin to understand how the large accounts determining market the trend, change of trend and price action. Wyckoff Phases of Accumulation Phase A: In phase A, supply has been dominant and it appears that finally the exhaustion of supply is...
We can notice an accumulation phase in the market. Pay attention at the spring, if you zoom in the chart you can see that the low of the spring has broken the low of selling climax and that is a perfect liquidity grab used by istitutionals to open their big long positions. Then you can see the gartley pattern that worked perfectly, now I expect a retracment and a...
Based on the work of Richard Wyckoff in the 1930s, these are the 4 STAGES OF THE STOCK CYCLE.
Back last year I posted an educational post on the Wyckoff Distribution schematic I was seeing on Bitcoin. This was the logic behind the "Rocket Call" back last March. It was knowing where to search for an accumulation (which it was not) or a distribution. There are a couple of tell tail signs outside of Wyckoff literature that can assist in knowing which is...
Natural Gas: The essence of techncial analysis (at least in my opinion) is ascertaining the ebb and flow of supply and demand. Natural Gas futures offers a great example of a market which, despite ultra-bullish headlines, displayed clear signs of strengthening supply/falling demand prior to breaking hard. The reduction of thrust or the declining net result of...
My personal early entry on oil .. -Long after showing the SOS. -Long at pullback after break of the creek.
Pay attention to the phases and letter designations on the graph that I showed on the ADA / BTC pair. (Cardano). A diagram of the accumulation phases is shown. Which are relevant for trading now. Several trading methods are combined on the chart: 1) Trading by the Wyckoff method. 2) Trade in horizontal channels. 3) Trade from important areas (price reversal...
Pay attention to the phases and letter designations on the graph that I showed on the ADA / BTC pair. (Cardano). A diagram of the accumulation phases is shown. Which are relevant for trading now. Several trading methods are combined on the chart: 1) Trading by the Wyckoff method. 2) Trade in horizontal channels. 3) Trade from important areas (price reversal...
What is the Wyckoff Method? The Wyckoff Method was developed by Richard Wyckoff in the early 1930s. It consists of a series of principles and strategies initially designed for traders and investors. Wyckoff dedicated a significant part of his life teaching, and his work impacts much of modern technical analysis (TA). While the Wyckoff Method was originally focused...
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:...
Introduction: --------------------------------- Richard Demille Wyckoff (November 2, 1873 – March 7, 1934) was considered one of the five “titans” of technical analysis , along with Dow, Gann , Elliott and Merrill. Wyckoff was an avid student of the markets, as well as an active tape reader and trader. He observed the market activities and campaigns of the...
Price comes down into the preliminairy support. Price pulls back, showing bigger bullish strength (CHoCH in candle structure) -> Slowing price and creating support -> thus creating liquidity Price bottoms out, creating the selling climax. -> Dumb money starts getting involved in sells. -> Composite man starts buying. Price rallies back up to the end of the CHoCH...