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Wyckoff

Wyckoff's Accumulation phaseThis is Wyckoff's Accumulation phase that is tricky to understand, Wyckoff's methods are real smart money concept. Actually Wyckoff's understand how SM place their orders. So after a long time by studying markets sir Wyckoff distributed his knowledge between public. And reality is Support and Resistance work but not so nicely SM know how retail traders trade the market. So they break the retail levels induces public and collect their orders and reduce public From trades. Concepts are little bit complicated to apply in real time chart, but it actually works. If anyone wants to learn those concepts then they can search on Google 'Wyckoff's method'.
Education
by HelloSujoyGain
Do you know the inside of the candle?A typical candle will have an Open, High, Low, Close. You will see these referred to in some text, articles and indicators as O,H,L,C Below is the structure of both a Bullish (Green) & Bearish (Red) Candle The cycle shown below, is the action within a candle, think about this – the candle opens at say 100, it dips to 95 and starts gaining ground to 120, before dropping a little to 115 and closing there. Why is this important? Think of it like a football (soccer) match – the game starts and plays out during a set time, much like the candle – and at the end we have a score. The actions in the match tell the story, but it’s the end result that counts. So, what is the story? The middle of the candle known as the body is equal to the spread and gives a clue as to the sentiment of this particular candle. Sentiment A wide spread gives the indication of strong sentiment, of course if the candle is red with a long body it would be strong bearish sentiment. If the body is narrow – it suggests a weak bias overall. Do the wicks matter? – well yes, of course. They tell another story, the wick can give you the equivalent of the match highlights – how much time/effort was committed in the oppositions half. If you think of it still as a sports match. Although the body (spread) is small this image shows a different type of strength, well actually it is more weakness to the upside than downside strength. The market has tried to push higher and failed. Wicks in some more detail. Inside the wick you can see effort with lack of reward. Shown in the image above, this can be exaggerated and emphasised if accompanied by a small body or spread. Especially in the other direction. By this I mean a large wick on the top and then the bar closing red would have emphasis on bearish sentiment – however, a small red body would show little buying interest but no real intent to the downside. The candles can tell a story, often on their own. However various formations give more detail and can be used to identify events prior to a major move. This is especially powerful when used with some other methods, that can zone in on areas of interest. Did you know? Inside @TradingView indicator tab; there is a sub section for candlestick patterns – to automate the recognition. This feature has several scripts for Doji, Engulfing, Hammers, Spinning tops and many more. This was only a quick dive into candlesticks – nothing major and not much depth, but as usual, I hope this helps even with the appreciation of what a candle represents. Some additional educational posts; Disclaimer This idea does not constitute as financial advice. It is for educational purposes only, our principle trader has over 20 years’ experience in stocks, ETF’s, and Forex. Hence each trade setup might have different hold times, entry or exit conditions, and will vary from the post/idea shared here. You can use the information from this post to make your own trading plan for the instrument discussed. Trading carries a risk; a high percentage of retail traders lose money. Please keep this in mind when entering any trade. Stay safe.
BITSTAMP:ETHUSDEducation
by Mayfair_Ventures
34
BTC Wyckoff Accumulation Accumulation: Wyckoff Events school.stockcharts.com 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 by larger professional interests at or near a bottom. Often price will close well off the low in a SC, reflecting the buying by these large interests. AR—automatic rally, which occurs because intense selling pressure has greatly diminished. A wave of buying easily pushes prices up; this is further fueled by short covering. The high of this rally will help define the upper boundary of an accumulation TR. ST—secondary test, in which price revisits the area of the SC to test the supply/demand balance at these levels. If a bottom is to be confirmed, volume and price spread should be significantly diminished as the market approaches support in the area of the SC. It is common to have multiple STs after a SC. Note: Springs or shakeout usually occur late within a TR and allow the stock’s dominant players to make a definitive test of available supply before a markup campaign unfolds. A “spring” takes price below the low of the TR and then reverses to close within the TR; this action allows large interests to mislead the public about the future trend direction and to acquire additional shares at bargain prices. A terminal shakeout at the end of an accumulation TR is like a spring on steroids. Shakeouts may also occur once a price advance has started, with rapid downward movement intended to induce retail traders and investors in long positions to sell their shares to large operators. However, springs and terminal shakeouts are not required elements: Accumulation Schematic 1 depicts a spring, while Accumulation Schematic 2 shows a TR without a spring. Test— Large operators always test the market for supply throughout a TR (e.g., STs and springs) and at key points during a price advance. If considerable supply emerges on a test, the market is often not ready to be marked up. A spring is often followed by one or more tests; a successful test (indicating that further price increases will follow) typically makes a higher low on lesser volume. SOS—sign of strength, a price advance on increasing spread and relatively higher volume. Often a SOS takes place after a spring, validating the analyst’s interpretation of that prior action. LPS—last point of support, the low point of a reaction or pullback after a SOS. Backing up to an LPS means a pullback to support that was formerly resistance, on diminished spread and volume. On some charts, there may be more than one LPS, despite the ostensibly singular precision of this term. BU—“back-up” . This term is short-hand for a colorful metaphor coined by Robert Evans, one of the leading teachers of the Wyckoff method from the 1930s to the 1960s. Evans analogized the SOS to a “jump across the creek” of price resistance, and the “back up to the creek” represented both short-term profit-taking and a test for additional supply around the area of resistance. A back-up is a common structural element preceding a more substantial price mark-up, and can take on a variety of forms, including a simple pullback or a new TR at a higher level. Accumulation: Wyckoff Phases 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 large professional interests. Once these intense selling pressures have been relieved, an automatic rally (AR), consisting of both institutional demand for shares as well as short-covering, typically ensues. A successful secondary test (ST) in the area of the SC will show less selling than previously and a narrowing of spread and decreased volume, generally stopping 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. The lows of the SC and the ST and the high of the AR set the boundaries of the TR. Horizontal lines may be drawn to help focus attention on market behavior, as seen in the two Accumulation Schematics above. Sometimes the downtrend may end less dramatically, without climactic price and volume action. In general, however, it is preferable to see the PS, SC, AR and ST, as these provide not only a more distinct charting landscape but a clear indication that large operators have definitively initiated accumulation. In a re-accumulation TR (which occurs during a longer-term uptrend), the points representing PS, SC and ST are not evident in Phase A. Rather, in such cases, Phase A resembles that more typically seen in distribution (see below). Phases B-E generally have a shorter duration and smaller amplitude than, but are ultimately similar to, those in the primary accumulation base. Phase B: In Wyckoffian analysis, 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) and involves purchasing shares at lower prices and checking advances in price with short sales. There are usually multiple STs during Phase B, as well as upthrust-type actions at the upper end of the TR. 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 TR tends to diminish. When it appears that supply is likely to have been exhausted, the stock is ready for Phase C. Phase C: It is in Phase C that the stock 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. As noted above, a spring is a price move below the support level of the TR (established in Phases A and B) that quickly reverses and moves back into the TR. 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 that the stock is likely to be ready to move up, so this is a good time to initiate at least a partial long position. The appearance of a SOS shortly after a spring or shakeout validates the analysis. As noted in Accumulation Schematic #2, however, the testing of supply can occur higher up in the TR without a spring or shakeout; when this occurs, the identification of Phase C can be challenging. 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. LPSs in this phase are generally excellent places to initiate or add to profitable long positions. Phase E: In Phase E, the stock 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 both profit-taking and acquisition of additional shares (“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. source:https://school.stockcharts.com/doku.php?id=market_analysis:the_wyckoff_method
BITFINEX:BTCUSDEducation
by SALEHvert
Dow Theory simple introduction For those of you not familiar with Dow Theory. Here's a simple introduction. Nothing technical just a "welcome to" type of educational post. Short History Dow Has 6 Rules - these are known as the 6 Tenets Dow is mostly known (most obvious - the Dow Jones Industrial Average) Other tools and techniques can fit into the Dow Theory, such as Elliott and Wyckoff. Wyckoff "Buy me now" moves. As for Wyckoff - volume is and was a factor for the Dow Theory; Volume should increase in the direction of the trend in order to give confirmation. It is only a secondary indication but Dow realized that if volume didn't increase in the direction of the trend, this is a red flag. This means that the trend may not be valid. As basic wave principles apply - Dow simplified the inner workings of the market with the 6 tenets. He also came out with some brilliant quotes such as "Money is made by conservative trading rather than by the effort to get large profits by taking large risks." And “A person watching the tide coming in and who wishes to know the exact spot which marks the high tide, sets a stick in the sand at the points reached by the incoming waves until the stick reaches a position where the waves do not come up to it, and finally recede enough to show that the tide has turned. This method holds good in watching and determining the flood tide of the stock market.” ====================================================================================================================================== Dow theory trading strategy Most trading strategies used today hinge on one key concept, the "trend". This was a novel idea when Charles H. Dow published his writings at the end of the 19th century. Dow theory says that the market is in an upward trend if one of its averages goes above a previous important high and is accompanied or followed by a similar movement in the other average. Therefore, a Dow theory trading strategy is based on a trend-following strategy, and can either be bullish or bearish. So although the times have changed, human nature and the basic principles have not. Some of the theory can easily be applied to instruments such as commodities, Forex and crypto. As I said, this is not a lesson on the trading with, it was more an intro to. Worth some additional research, there are some very interesting books on the subject. Wyckoff basics part 2 )click the image link) Disclaimer This idea does not constitute as financial advice. It is for educational purposes only, our principle trader has over 20 years’ experience in stocks, ETF’s, and Forex. Hence each trade setup might have different hold times, entry or exit conditions, and will vary from the post/idea shared here. You can use the information from this post to make your own trading plan for the instrument discussed. Trading carries a risk; a high percentage of retail traders lose money. Please keep this in mind when entering any trade. Stay safe.
TVC:DJIEducation
by Mayfair_Ventures
10
Wyckoff Anatomy of a Trading RangeRichard Demille Wyckoff (1873–1934) was an early 20th-century pioneer in the technical approach to studying the stock market. He is considered one of the five “titans” of technical analysis, along with Dow, Gann, Elliott and Merrill. Analyses of Trading Ranges One objective of the Wyckoff method is to improve market timing when establishing a position in anticipation of a coming move where a favorable reward/risk ratio exists. Trading ranges (TRs) are places where the previous trend (up or down) has been halted and there is relative equilibrium between supply and demand. Institutions and other large professional interests prepare for their next bull (or bear) campaign as they accumulate (or distribute) shares within the TR. In both accumulation and distribution TRs, the Composite Man is actively buying and selling - the difference being that, in accumulation, the shares purchased outnumber those sold while, in distribution, the opposite is true. The extent of accumulation or distribution determines the cause that unfolds in the subsequent move out of the TR. 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 by larger professional interests at or near a bottom. Often price will close well off the low in a SC, reflecting the buying by these large interests. AR—automatic rally , which occurs because intense selling pressure has greatly diminished. A wave of buying easily pushes prices up; this is further fueled by short covering. The high of this rally will help define the upper boundary of an accumulation TR. ST—secondary test , in which price revisits the area of the SC to test the supply/demand balance at these levels. If a bottom is to be confirmed, volume and price spread should be significantly diminished as the market approaches support in the area of the SC. It is common to have multiple STs after a SC. Note: Springs or shakeouts usually occur late within a TR and allow the coin or stock’s dominant players to make a definitive test of available supply before a markup campaign unfolds. A “spring” takes price below the low of the TR and then reverses to close within the TR; this action allows large interests to mislead the public about the future trend direction and to acquire additional shares at bargain prices. A terminal shakeout at the end of an accumulation TR is like a spring on steroids. Shakeouts may also occur once a price advance has started, with rapid downward movement intended to induce retail traders and investors in long positions to sell their shares to large operators. However, springs and terminal shakeouts are not required elements. Test —Large operators always test the market for supply throughout a TR (e.g., STs and springs) and at key points during a price advance. If considerable supply emerges on a test, the market is often not ready to be marked up. A spring is often followed by one or more tests; a successful test (indicating that further price increases will follow) typically makes a higher low on lesser volume. SOS—sign of strength , a price advance on increasing spread and relatively higher volume. Often a SOS takes place after a spring, validating the analyst’s interpretation of that prior action. LPS—last point of support , the low point of a reaction or pullback after a SOS. Backing up to an LPS means a pullback to support that was formerly resistance, on diminished spread and volume. On some charts, there may be more than one LPS, despite the ostensibly singular precision of this term. BU—“back-up” . This term is short-hand for a colorful metaphor coined by Robert Evans, one of the leading teachers of the Wyckoff method from the 1930s to the 1960s. Evans analogized the SOS to a “jump across the creek” of price resistance, and the “ back up to the creek ” represented both short-term profit-taking and a test for additional supply around the area of resistance. A back-up is a common structural element preceding a more substantial price mark-up, and can take on a variety of forms, including a simple pullback or a new TR at a higher level.
BITSTAMP:BTCUSDEducation
by TaherJalili
5
IOTAUSD _ If this were the WYCKOFF Accumulation ...On many websites educating us in relation to various trading methods and trading psychology we see often Wyckoff Schematics in relation to Distribution and Accumulation. This example presents IOTAUSD trading pair, but obviously could be used on others. It's quite complex and extensive for beginner traders to wrap your head around but if true and spotted early might become a lucrative trading method for those who are patient. Here I present an example which might obviously fail, but at least you know what you could expect if this were to platy out.
BINANCE:IOTAUSDEducation
by crypto_poet
Wyckoff Basics part 2After my last educational wyckoff post - I had a lot of comments, questions and so on. The idea was to post the basics and show the concept - there has been a lot of the overlay, breakdown and other people jumping on this. It was a move we called on the 18th of March (see the "they blew up the rocket" post). In terms of some simple education, Wyckoff is deep and possibly too deep for newer traders. What I was trying to highlight was the existence of such techniques. In part one; I only covered the point of how the distribution phase was playing out in Bitcoin. In this post, I will share some additional depth - for those of you already familiar with Wyckoff techniques you already have this. So we are not covering here (volume, how to identify or any of the more advanced stuff or terms like creeks or mark-ups and downs) Just another simple intro to the basics & a step up from post one. So if you have not seen the first post; check it out here by clicking the image. 4 Major types of schematics The Accumulation and Distribution Schematics are a major part of Wyckoff’s work, These schematics are broken down into 2 patterns for accumulation and 2 for distribution. These sections are then divided into five Phases (A to E), along with multiple Wyckoff Events - we will cover this later. Distribution schematics So in the previous post & it was fortuitous that Bitcoin was a near textbook example of the distribution schematic #1. The second type of distribution schematic looks like this; As you can see, there are a lot of similarities & it can be confusing, but this is where it's best to dig deeper into the concept, why volume plays a big part in Wyckoff techniques and gain an understanding of the naming convention for each of the events inside. ** We have a naming convention key below ** Accumulation As well as distribution you also have accumulation and this also has 2 (major) schematics; #1 And #2 ====================================================================================================================================== Key; The first phase or ways to identify a schematic forming is with what is called a PS (Accumulation) or PSY (distribution) - this is basically the change of character as the trend moves towards a schematic; Preliminary Support (PS) and Preliminary Supply (PSY). The first significant reaction that occurs after a prolonged rally that indicates budding supply showing up. You then have a BC or SC - buyer climax / sellers Climax; the obvious BC in an uptrend suggesting institutional operators cashing out. and the inverse with the SC. The next major event is the AR - Automatic reaction (rally) - The reaction that occurs after a Buying Climax. It occurs without previous preparation, hence the word “automatic.” and in layman terms it's the exit of large positions after a climax (SC and BC) event. ST next - this is a second test (ST) A name given by Wyckoff to the reaction following Automatic Rally, (or rally following the Automatic reaction.) If that test is associated with small range and light volume — it increases the likelihood that the previous trend is over. Next a move down if it is accumulation would be a SOW - this is "Sign of Weakness" and inverse we have SOS "Sign of strength" In distribution - you then have two major differences over the accumulation schematic; UT = Up Thrust and a UTAD = UP Thrust after Distribution. For distribution you have a spring, think of this like the last drop before moving up rapidly out of a schematic on the Bullish side. You then have "Test" phases usually of the support and resistance levels (zones) created by the schematic as shown in the images above. And finally you have LPSY for distribution Last Point of Supply - A point at the end of the process of distribution where the Composite Man (Large operators) recognizes that demand forces have exhausted themselves and it is safe to start marking down prices. Last Point of Support (LPS) which is the accumulation equivalent - A point at the end of the process of accumulation where the large operators recognizes that supply forces have exhausted themselves and it is safe to start marking up prices. This is still only the basics, not looking at phases or volume or anything else yet. It's worth going away and studying this in a little more detail to get familiar with the concepts and terminology and in the next post I will cover the phases. ======================================================================================================================================= I know a lot of you readers are here purely for the crypto/BTC calls made - and another logical reason we are still liking a slow move down at this level, comes in the current DXY situation. See this post below as to the current situation there. (the relevance might be small - But understanding the forces at work, with DXY to BTC. Is actually useful). Shorter term strength = will aid BTC slow moves. Disclaimer This idea does not constitute as financial advice. It is for educational purposes only, our principle trader has over 20 years’ experience in stocks, ETF’s, and Forex. Hence each trade setup might have different hold times, entry or exit conditions, and will vary from the post/idea shared here. You can use the information from this post to make your own trading plan for the instrument discussed. Trading carries a risk; a high percentage of retail traders lose money. Please keep this in mind when entering any trade. Stay safe.
COINBASE:XLMUSDEducation
by Mayfair_Ventures
23
Wyckoff Price Cycle ExplainedAccording to Wyckoff, the market can be understood and anticipated through detailed analysis of supply and demand, which can be ascertained from studying price action, volume and time. As a broker, he was in a position to observe the activities of highly successful individuals and groups who dominated specific issues; consequently, he was able to decipher, via the use of what he called vertical (bar) and figure (Point and Figure) charts, the future intentions of those large interests. An idealized schematic of how he conceptualized the large interests' preparation for and execution of bull and bear markets is depicted in the figure above. The time to enter long orders is towards the end of the preparation for a price markup or bull market (accumulation of large lines of stock), while the time to initiate short positions is at the end of the preparation for price markdown.
BITSTAMP:BTCUSDEducation
by Lzr_Fx
Breaking down Wyckoff into 5 steps called the CURVEBefore I knew what wyckoff was, I saw something in the market and studied it 12 hours a day for 8 months. Even made a rule set for it. It wasn't until 2 months ago I started looking to find the missing pieces of the puzzle. Thats when I found wyckoff. Wyckoff is the technical step by step version of what the curve is, except I can explain the curve in 5 steps vs 16-24 over 4 different variations and 4-8 different variations of that. It's a little too much for the avg person. The curve is purely visual and easy to understand. In this video I go over Facebooks price action and correlate that to both wyckoff and the curve. If you would like to see more videos like this please like follow subscribe, and leave a comment below. This will help me guage if there is a need to learn more. I have acquired savant syndrome , 1 of 33 people in the world, who have gained a talent after a traumatic brain injury. At first it was just art and painting. I never was great at drawing and I couldnt paint before the wreck. 11 staples later I was paint portraits near realism and spray painting 50ft by 50ft buildings, even though I had never held a spray can before that. I started looking at charts 9 months ago and have spent more than 12 hours a day since looking at them. The curve is my baby, I found wyckoff a few months ago. Together it gives me a vast understanding of whats happening in the market and where price should go. I combine this with some other things I have found in the market to plot trend lines that should envelope Price action and even predict the highs and lows as it moves. I use these trendlines not to predict really but to give me a non emotional trigger to either get in or stay out of the market. If Price Action respects the trendlines, then this would be a stock I would play. My target is the highs and lows of the trendline. Simple enough. I have started with an extremely small amount of money and have made more that 5 x my money which is hard when you can't really play stocks that are known for moving because they cost more. Finding cheaper option plays that are going to pop with momentum is what I have used this with in order to build my account large enough to play stronger more stable option plays like HD GS etc... Thanks again for watching, iCantw84it 05.15.2021
NASDAQ:METAEducation
by iCantw84it
Wyckoff Yöntemi CR Binance AcademyA Fazı İlk faz, yerleşmiş bir yükseliş trendinin azalan talep nedeniyle yavaşlamaya başlamasıyla ortaya çıkar. Öncü Arz (Preliminary Supply (PSY)) satış gücünün kendini göstermeye başladığını işaret eder ancak halen yükseliş trendini durdurmaya yetecek kadar güçlü değildir. Daha sonra yoğun bir alım faaliyeti sonucunda Alım Zirvesi (Buying Climax (BC)) oluşur. Bu genellikle deneyimsiz tacirlerin duygusal alımlarından kaynaklanır. Daha sonra, aşırı talep piyasa yapıcılar tarafından karşılandıkça, yukarı yönlü güçlü hareket bir Otomatik Reaksiyona (Automatic Reaction (AR)) neden olur. Bir diğer deyişle Kompozit Adam varlıklarını geç gelen alıcılara dağıtmaya başlar. İkinci Test (Secondary Test (ST)) piyasa yeniden BC bölgesine ulaştığında ve genellikle daha düşük bir tepe noktası oluşturduğunda ortaya çıkar. B Fazı Dağıtımın B Fazı düşüş trendinin (Sonuç) öncesinde oluşarak bir birikim bölgesi (Neden) gibi hareket eder. Bu faz boyunca Kompozit Adam kademeli olarak varlıklarını satar ve piyasa talebini absorbe ederek zayıflatır. Genellikle, alım satım aralığının üst ve alt bantları defalarca test edilir ve bu süreç kısa vadeli ayı ve boğa tuzakları içerebilir. Piyasa bazen Alım Zirvesi (BC) tarafından oluşturulan direnç seviyesinin üstüne çıkarak Yükselme (Upthrust (UT)) olarak da adlandırılan bir İkinci Test'e (ST) sebep olabilir. C Fazı Bazı durumlarda piyasa, birikim fazının ardından son bir boğa tuzağı daha sunabilir. Buna Dağıtım Sonrası Yükselme (Upthrust After Distribution)(UTAD)) denir. UTAD temelde, Birikim sürecindeki Spring'in tersidir. D Fazı Dağıtımın D Fazı Birikimdeki D Fazının neredeyse ayna görüntüsü gibidir. Genellikle aralığın ortasında bir Son Arz Noktası (Last Point of Supply (LPSY)) yer alır ve daha düşük bir tepe oluşturur. Bu noktadan destek bölgesinin etrafında ya da altında yeni LPSY'ler oluşur. Piyasa, destek çizgilerinin altına indiğinde belirgin bir Zayıflık Noktası (Sign of Weakness (SOW)) ortaya çıkar. E Fazı Dağıtımın son fazı düşüş trendinin başlangıcını işaret eder. Talebe kıyasla arzın güçlü egemenliği sonucu alım satım aralığının belirgin şekilde kırıldığı görülür.
BINANCE:BTCUSDEducation
by MDkarimovic
Average Up as a Trading StrategyThe average up strategy provides Huge wins, Small losses and Risk minimized. Use RANGE-CHART for this, so you could see the Buy setups more easily with less noise or time distortion. First You look for a buy setup, one that you believe that price should move rapidly from your starting buy point (you expect ab big relative move). Second You add up position. Every trader should use his own risk management based on his account size and what he is comfortable with, BUT... The position units you add have to be in the SAME SIZE! If they are not in the same size, the break-even point will not move up as I showed in the chart. Side note: experience traders can play with the portions of the positions, so they can manipulate the break-even point as they wish... In the first case on the chart (the idea was wrong), the position stopped out with 3 units of loss. In the second case on the chart (the idea was right), the price from a certain point moved away from the break-even point, which means that you were GREEN the whole time in the trade (when you had a relatively big position). You had "AIR" to hold this huge position. Many great traders used the average-up strategy: Jesse Livermore, Richard Wyckoff, Nicolas Darvas. If you are right, you are right in the biggest position possible => you have a huge win of 45 UNITS. if you are wrong, you are wrong in the small position => you have a small loss of 3 UNITS. --------------------------------------------------------------------------------------------------------------------------- Bottom-line profit => 42 UNITS of profit $$$$ If you like this educational, let me know in the comments, and like it, so it will be saved on your liked ideas.
NASDAQ:NVDAEducation
by ZoharCho
7
Elliott -Wyckoff Breakdown (2) of (2)Although it's a crazy time with the whole world in Pandemic mode due to Covid - you can still see the Wyckoff theory at work, by looking at these principles near or in key levels you can see the advantage of waiting to join smart money moves. As a mentor, I often get emails and messages asking should I long this or short that. And usually, as soon as you see the chart, it's obvious that the retail game is being played. And we wonder why over 70% of retail traders lose money. Looking for confluence and then trading with confidence into or from key zones makes more sense than trading support and resistance levels which have been open to a subjective view. Chat rooms, trade ideas, signals, indicators - all move the trader away from the real structural significance. Again like Elliott - there are plenty of educational videos, PDFs, and books on Wyckoff and his theory. Some good books include "How I trade and invest in stocks and bonds" by Richard D Wyckoff and another good Wyckoff book is "The Wyckoff methodology in-depth" by Ruben Villahermosa Chaves. Disclaimer This idea does not constitute as financial advice. It is for educational purposes only, our principle trader has over 20 years’ experience in stocks, ETF’s, and Forex. Hence each trade setup might have different hold times, entry or exit conditions, and will vary from the post/idea shared here. You can use the information from this post to make your own trading plan for the instrument discussed. Trading carries a risk; a high percentage of retail traders lose money. Please keep this in mind when entering any trade. Stay safe.
Education
by Mayfair_Ventures
Wyckoff - Price CycleTextbook educational example of the Wyckoff Price Cycle, focusing on; Accumulations, Distribution, Markups, Markdowns, The Spring and UTAD. The graphic doesn't take into consideration the finer details of both the accumulation &/or distribution schematics nor does it focus on the re-accumulation / re-distribution schematics. Please see our other ideas for a specific breakdown of the above ^ Please also feel free to comment or reach out to us. Trade Smart! Phantom
Education
by Phantom_Trading
4
Basic Concepts of Liquidity Truly understanding 'why' the market moves through basic concepts of Liquidity This basic analytical overview is derived from the institutional methodology used at Phantom Trading. We use this institutional methodology commonly known as 'smart money concepts' in conjunction with additional pieces of confluence to utilise Liquidity around the factualities of the market. Within the graphic is 'reads a story of transitional money flow' in a clear, concise manner based on a 'vanilla / utopian / textbook' setup. At the extremity we can see the absolute 'swing high' creating a BMS (Break of market structure) followed by an impulsive continuation to the downside showing 'Bearish' Intent, the market tapping into demand & buy side liquidity has then correctively navigated back towards the previous swing high, printing what is commonly known as a 'double top' where several 'trading styles / types / characteristics' come into play - Front running 'Breakout traders' , Double-top' traders and the more patient Trend continuation', 'Breakout & Retest' traders. Knowing and understand concepts of Supply / Sell side liquidity around these levels we classify these as EQH - equal Highs as Liquidity is manufactured in these specific regions filling bids & offers. Once we have 'swept the liquidity' above the EQH it provides us with additional opportunities to Short the 'asset-class'
Education
by Phantom_Trading
What is the Wyckoff Method? #2 Distribution SchematicDistribution Schematic In essence, the Distribution Schematics works in the opposite way of the Accumulation, but with slightly different terminology. Wyckoff method distribution schematic Phase A The first phase occurs when an established uptrend starts to slow down due to decreasing demand. The Preliminary Supply (PSY) suggests that the selling force is showing up, although still not strong enough to stop the upward movement. The Buying Climax (BC) is then formed by an intense buying activity. This is usually caused by inexperienced traders that buy out of emotions. Next, the strong move up causes an Automatic Reaction (AR), as the excessive demand is absorbed by the market makers. In other words, the Composite Man starts distributing his holdings to the late buyers. The Secondary Test (ST) occurs when the market revisits the BC region, often forming a lower high. Phase B Phase B of a Distribution acts as the consolidation zone (Cause) that precedes a downtrend (Effect). During this phase, the Composite Man gradually sells his assets, absorbing and weakening market demand. Usually, the upper and lower bands of the trading range are tested multiple times, which may include short-term bear and bull traps. Sometimes, the market will move above the resistance level created by the BC, resulting in an ST that can also be called an Upthrust (UT). Phase C In some cases, the market will present one last bull trap after the consolidation period. It’s called UTAD or Upthrust After Distribution. It is, basically, the opposite of an Accumulation Spring. Phase D The Phase D of a Distribution is pretty much a mirror image of the Accumulation one. It usually has a Last Point of Supply (LPSY) in the middle of the range, creating a lower high. From this point, new LPSYs is created - either around or below the support zone. An evident Sign of Weakness (SOW) appears when the market breaks below the support lines. Phase E The last stage of a Distribution marks the beginning of a downtrend, with an evident break below the trading range, caused by a strong dominance of supply over demand. Outcome: Naturally, the market doesn’t always follow these models accurately. In practice, the Accumulation and Distribution Schematics can occur in varying ways. There may be delays in some phases. Still, Wyckoff’s work offers a wide range of reliable techniques, which are based on his many theories and principles. It is certainly much more than a TA indicator. In essence, the Wyckoff Method allows investors to make more logical decisions rather than acting out of emotions. The extensive work of Wyckoff provides traders and investors a series of tools for reducing risks and increasing their chances of success. Still, there is no foolproof technique when it comes to investing. One should always be wary of the risks. Best regards EXCAVO
BEducation
by EXCAVO
18
What is the Wyckoff Method? Accumulation schematic #1 Wyckoff Event and Phases 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 on stocks, it is now applied to all sorts of financial markets. The three laws of Wyckoff The Law of Supply and Demand The first law states that prices rise when demand is greater than supply, and drop when the opposite is true. This is one of the most basic principles of financial markets and is certainly not exclusive to Wyckoff’s work. We may represent the first law with three simple equations: Demand > Supply = Price rises Demand < Supply = Price drops Demand = Supply = No significant price change (low volatility) In other words, the first Wyckoff law suggests that an excess of demand over supply causes prices to go up because more people are buying than selling. But, in a situation where there is more selling than buying, the supply exceeds demand, causing the price to drop. Many investors who follow the Wyckoff Method compare price action and volume bars as a way to better visualize the relation between supply and demand. This often provides insights into the next market movements. The Law of Cause and Effect The second law states that the differences between supply and demand are not random. Instead, they come after periods of preparation, as a result of specific events. In Wyckoff's terms, a period of accumulation (cause) eventually leads to an uptrend (effect). In contrast, a period of distribution (cause) eventually results in a downtrend (effect). Wyckoff applied a unique charting technique to estimate the potential effects of a cause. In other terms, he created methods of defining trading targets based on the periods of accumulation and distribution. This allowed him to estimate the probable extension of a market trend after breaking out of a consolidation zone or trading range (TR). The Law of Effort vs. Result The third Wyckoff law states that the changes in an asset’s price are a result of an effort, which is represented by the trading volume. If the price action is in harmony with the volume, there is a good chance the trend will continue. But, if the volume and price diverge significantly, the market trend is likely to stop or change direction. For instance, imagine that the Bitcoin market starts to consolidate with a very high volume after a long bearish trend. The high volume indicates a big effort, but the sideways movement (low volatility) suggests a small result. So, there is a lot of Bitcoins changing hands, but no more significant price drops. Such a situation could indicate that the downtrend may be over, and a reversal is near. Wyckoff’s Schematics The Accumulation and Distribution Schematics are likely the most popular part of Wyckoff’s work - at least within the cryptocurrency community. These models break down the Accumulation and Distribution phases into smaller sections. The sections are divided into five Phases (A to E), along with multiple Wyckoff Events, which are briefly described below. Accumulation Schematic Wyckoff method accumulation schematic Phase A The selling force decreases, and the downtrend starts to slow down. This phase is usually marked by an increase in trading volume. The Preliminary Support (PS) indicates that some buyers are showing up, but still not enough to stop the downward move. The Selling Climax (SC) is formed by an intense selling activity as investors capitulate. This is often a point of high volatility, where panic selling creates big candlesticks and wicks. The strong drop quickly reverts into a bounce or Automatic Rally (AR), as the excess supply is absorbed by the buyers. In general, the trading range (TR) of an Accumulation Schematic is defined by the space between the SC low and the AR high. As the name suggests, the Secondary Test (ST) happens when the market drops near the SC region, testing whether the downtrend is really over or not. At this point, the trading volume and market volatility tend to be lower. While the ST often forms a higher low in relation to the SC, that may not always be the case. Phase B Based on Wyckoff’s Law of Cause and Effect, Phase B may be seen as the Cause that leads to an Effect. Essentially, Phase B is the consolidation stage, in which the Composite Man accumulates the highest number of assets. During this stage, the market tends to test both resistance and support levels of the trading range. There may be numerous Secondary Tests (ST) during Phase B. In some cases, they may produce higher highs (bull traps) and lower lows (bear traps) in relation to the SC and AR of Phase A. Phase C A typical Accumulation Phase C contains what is called a Spring. It often acts as the last bear trap before the market starts making higher lows. During Phase C, the Composite Man ensures that there is little supply left in the market, i.e., the ones that were to sell already did. The Spring often breaks the support levels to stop out traders and mislead investors. We may describe it as a final attempt to buy shares at a lower price before the uptrend starts. The bear trap induces retail investors to give up their holdings. In some cases, however, the support levels manage to hold, and the Spring simply does not occur. In other words, there may be Accumulation Schematics that present all other elements but not the Spring. Still, the overall scheme continues to be valid. Phase D Phase D represents the transition between Cause and Effect. It stands between the Accumulation zone (Phase C) and the breakout of the trading range (Phase E). Typically, Phase D shows a significant increase in trading volume and volatility. It usually has a Last Point Support (LPS), making a higher low before the market moves higher. The LPS often precedes a breakout of the resistance levels, which in turn creates higher highs. This indicates Signs of Strength (SOS), as previous resistances become brand new supports. Despite the somewhat confusing terminology, there may be more than one LPS during Phase D. They often have increased trading volume while testing the new support lines. In some cases, the price may create a small consolidation zone before effectively breaking the bigger trading range and moving to Phase E. Phase E Phase E is the last stage of an Accumulation Schematic. It is marked by an evident breakout of the trading range, caused by increased market demand. This is when the trading range is effectively broken, and the uptrend starts. Best regards EXCAVO
BITSTAMP:BTCUSDEducation
by EXCAVO
52