How To Trade Wyckoff Accumulation And Re Accumulation

 

Principles And Terms Use In Wyckoff

Line A & B (bottom horizontal lines) Defines support of the Trading Range

Line C&D (top horizontal lines) Defines the Resistsance of the Trading Range

Preliminary Support (PS)

Buyers are in play and provides pronounced support after a move down.

Volumes & Spreads widens to provide signals that the down move may be coming to an end

Selling Climax (SC)

This is when selling pressure and widening spreads climax & Any sellings by the public are being absorbed by larger players near a bottom

Automatic Rally (AR)

Selling Pressure is exhausted & Buying pressure takes place to push price up. The high of the rally usually defines the top of the trading range.

Secondary Test(s) (STs)

This comes back to the SC area to test the supply & demand price levels. Any large supplies should not take place

 Volume & Spreads should be significantly

diminished as it creates a “Support” by the SC area

The Creek

This is a wavy line of resistance drawn across highs within the Trading Range

Springs/Shakeouts:

This happens late within the trading range. This is when the market tests the supply zone or the level of support before a Mark up happens.

If a spring has low volume then the way for a mark up is clear.

“The Spring or shake outs also serves the purpose of providing dominant interests with additional supply from weak holders at a lower price”

Jump Across the Creek (JAC)

This is when price jumps to/above a level of resistance and is a good indication that price is moving upwards

The story of this is when price is at the resistance of the Trading Range, The market would retreat in order to get a running start to “Jump Across the Peak” to break resistance. This move would be measured by price spread & volume

The volume & spread of this “jump” would be comparatively high to penetrate the resistance area

Signs of Strengths (SOS)

• Price is starting to rally up & has increased volume & spread

Last Point of Support (LPS)

• This is when price pullbacks to a previous resistance n has diminished spreads & volumes after a SOS

• This is a good place to initiate long positions

Mark Up

• Market has broken the Trading Range and is now moving in a uptrend with a series of SOS and LPS

• A SERIES OF SOS & LPS IS GOOD EVIDENCE THAT PRICE MARK UP HAS BEGUN

 

What is wyckoff methodology?

What is Wyckoff methodology

The Wyckoff Method is a technical analysis approach that can help investors decide what stocks to buy and when to buy them. The Wyckoff market cycle reflects Wyckoff's theory of what drives a stock's price movement. The four phases of the market cycle are accumulation, markup, distribution, and markdown