Método de negociação de wyckoff forex


Grupo de Treinamento Forex.


Como comerciante, você deve estar familiarizado com algumas das principais teorias sobre estrutura e ciclos de mercado. Alguns dos mais populares incluem o Elliott Wave Principle e a Dow Theory. No entanto, hoje vamos adicionar um tipo mais importante de análise de mercado ao seu arsenal comercial. Vamos dar um mergulho profundo na metodologia baseada em ação de preços conhecida como o método de negociação da Wyckoff.


Quem era Richard Wyckoff?


Richard Wyckoff era um famoso comerciante de ações e investidor que nasceu no final do século XIX. Wyckoff ficou fascinado com o mercado de ações em uma idade precoce, e no momento em que ele estava no meio dos 20 anos ele conseguiu abrir sua primeira empresa de corretagem. Mais tarde, ele criou vários livros de negociação de ações famosos, que ainda são estudados pelos jogadores do mercado de hoje.


Duas regras de Richard Wyckoff.


A teoria de Wyckoff baseia-se principalmente na ação de preços e nos diferentes estágios cíclicos ao qual o mercado se enquadra. É essencial que discutamos duas importantes regras estabelecidas em seu livro "Charting the Stock Market". Essas duas regras essenciais são parafraseadas abaixo.


A primeira regra de Richard Wyckoff afirma que o mercado nunca se comporta do mesmo jeito. A ação de preço nunca criará um movimento exatamente da mesma maneira que fez no passado. O mercado é verdadeiramente único. A segunda regra de Richard Wyckoff está relacionada ao primeiro. Ele afirma que, uma vez que cada movimento de preço é único, sua importância analítica é comparada ao comportamento anterior dos preços.


Essas duas regras são essenciais para a informação que discutiremos a seguir - a teoria do ciclo de mercado da Wyckoff.


Teoria do ciclo de mercado de Wyckoff.


A Wyckoff desenvolveu uma teoria do mercado de ação de preço que ainda é um princípio líder na prática comercial de hoje. O método de Wyckoff afirma que o ciclo de preços de um instrumento negociado consiste em 4 etapas & # 8211; Acumulação, marcação, distribuição e marca abaixo.


Fase de acumulação.


O processo de acumulação é o primeiro estágio do ciclo de preços da Wyckoff. A fase de acumulação é causada pelo aumento da demanda institucional. Os touros estão diminuindo o poder e, como resultado, estão preparados para aumentar os preços.


Embora o estágio de acumulação esteja relacionado com os ganhos que ganhem autoridade, a ação de preço no gráfico é plana. Em outras palavras, o processo de acumulação é ilustrado por uma estrutura de preços variável no gráfico.


Os fundos superiores dentro da faixa geralmente são considerados um sinal de que a ação de preço está atualmente em uma fase de acumulação.


Fase de marcação.


O Markup é o segundo estágio do ciclo de negociação de Wyckoff. Os touros ganham força suficiente para empurrar o preço pelo nível superior do intervalo. Isso geralmente é um sinal de que o preço está entrando no segundo estágio e que uma tendência de preços no alto está emergindo no gráfico.


Fase de Distribuição.


O processo de Distribuição é a terceira etapa do ciclo de preços da Wyckoff. Esta fase é onde os ursos estão tentando recuperar a autoridade no mercado.


A ação de preço no gráfico nesta etapa é plana, assim como com o processo de acumulação. Uma indicação de que o mercado está em uma fase de Distribuição será o fracasso sustentado do preço para criar fundos mais altos no gráfico. A ação de preço cria partes inferiores, o que é uma indicação de que o mercado está atualmente experimentando um selloff.


Fase de Marcação.


O Markdown é a última etapa do ciclo de preços da Wyckoff. O processo Markdown ocorre quando uma tendência de baixa começa após a fase de Distribuição. Isso indica que os ursos ganharam energia suficiente para empurrar o mercado na direção descendente.


O Markdown é confirmado quando a ação de preço quebra o nível mais baixo da faixa plana do canal de distribuição horizontal no gráfico.


Depois, todo o processo se repete a partir do primeiro estágio - o processo de acumulação.


Abaixo, você encontrará um esboço ilustrando os conceitos do ciclo de preços da Wyckoff:


As linhas azuis indicam o processo de acumulação no gráfico. Observe que os dois primeiros fundos estão aumentando. Isso confirma que o mercado pode estar acumulando neste ponto. A fuga através do nível superior do intervalo de acumulação confirma o fim da acumulação e o início do marcação (verde).


Em seguida, as partes decrescentes dentro da faixa superior indicam que o mercado pode estar entrando em uma Distribuição. A ruptura através do nível inferior da faixa de Distribuição confirma o fim do estágio e o início do Markdown (vermelho).


Primavera de acumulação / distribuição.


Você pode ter notado algo no nosso esboço do ciclo de mercado Wyckoff que ainda não mencionamos. Você notou que a ação de preço mergulhou abaixo do canal de acumulação e foi acima do canal de Distribuição antes da criação da fuga real? Esta ocorrência é chamada de primavera Wyckoff, que é essencialmente uma falha falsa. Esta é outra confirmação forte de que a ação de preço está seguindo o ciclo do mercado de Wyckoff.


Os círculos vermelhos na imagem acima mostram como a primavera aparece dentro da estrutura de Wyckoff. O breakout inicial (Spring) oposto ao movimento do preço esperado é usado como uma confirmação do desdobramento do ciclo. A primavera é muitas vezes associada a parar de correr, onde as instituições impulsionam os preços para áreas óbvias de perdas óbvias para encontrar a liquidez necessária para cumprir suas ordens.


Três Leis de Wyckoff.


Richard Wyckoff enfatiza três leis que são uma causa natural do ciclo de mercado.


Oferta vs. Demanda.


Se houver uma maior pressão de venda, causada pelo excesso de oferta, é provável que veremos uma diminuição no preço. Se houver uma maior pressão de compra, causada pelo excesso de demanda, provavelmente veremos um aumento de preço.


Esforço vs. Resultado.


Wyckoff diz que todos os esforços devem levar a um resultado nos mercados financeiros. Um exemplo da relação Esforço versus Resultado é o dado no volume de negociação. Se houver um volume comercial excepcionalmente elevado, podemos esperar uma mudança de preço grande. Assim, a barra de grande volume é o esforço dos jogadores do mercado para ganhar domínio. O movimento do grande mercado é o resultado desse esforço.


Causa vs. Efeito.


Wyckoff afirma que todas as causas no mercado levam a um efeito proporcional. Tomemos, por exemplo, as etapas de acumulação e distribuição. A acumulação leva a Markup e os aumentos de preços, e a Distribuição leva a Markdown e o preço diminui. A acumulação é a causa e o efeito de marcação é o efeito.


Análise de propagação do volume de Wyckoff.


O volume é de grande importância para o comerciante da Wyckoff, porque pode fornecer informações valiosas sobre o que realmente está acontecendo "nos bastidores".


A Análise de Volume da Wyckoff fornece confirmação de eventos progredentes durante o Ciclo de Preços Wyckoff. Como apontámos anteriormente, grandes volumes podem levar a movimentos de preços sustentados no gráfico - o resultado. Entretanto, isso não é tudo. A Análise de Difusão de Volume da Wyckoff também ajuda você a identificar os períodos em que o preço está em transição entre os diferentes estágios do ciclo de preços da Wyckoff.


Quando o preço se move através de um nível-chave durante o ciclo de preços da Wyckoff, você deve considerar o movimento válido se os volumes de negociação forem relativamente altos durante a fase final. Se os volumes estão diminuindo, então você provavelmente está olhando para uma mola (fuga falsa) em vez de uma fuga real. O gráfico abaixo fornece uma ilustração desse fenômeno.


Este é um exemplo de uma fase de acumulação do ciclo de Wyckoff. Observe no gráfico que os dois primeiros fundos (com base nos preços de fechamento) estão aumentando ligeiramente. Isso sugere que o mercado provavelmente está em fase de acumulação. De repente, vemos uma queda acentuada através do nível mais baixo da faixa azul. No entanto, o volume está diminuindo durante a quebra através do nível, o que sugere que isso pode ser uma quebra falsa (Primavera) antes que o real breakout realmente ocorra.


O preço inverte-se logo após a quebra, criando um par de grandes velas de alta. Ao mesmo tempo, o volume de negócios está aumentando. Esta é uma forte indicação de que o Ciclo de Preços provavelmente entrará no segundo estágio - o Marcação. Posteriormente, o preço corta o nível superior do intervalo e começa um aumento acentuado.


A movimentação alçada diminui ligeiramente durante a diminuição dos volumes. Isso sugere que a ação de preço provavelmente passará por um movimento corretivo, o que é exatamente o que acontece.


A retomada do movimento de alta vem com a ação do preço quebra o nível superior do canal corretivo no aumento do volume de negócios.


Como lucrar com o Wyckoff Trading em Forex.


Os comerciantes podem usar o ciclo de preços da Wyckoff para reconhecer os próximos movimentos de preços. Por exemplo, o final de um estágio de acumulação é o início de uma marcação, que pode ser negociada para o lado longo. Ao mesmo tempo, o fim de um estágio de Distribuição é o início de um Markdown, que pode ser negociado para o lado curto.


Compreender as diferentes etapas dentro do ciclo de preços permitirá que você posicione para a próxima tendência de preço mais provável. Podemos tentar comprar o mais próximo do início de um Marcação e tentar mantê-lo tão perto do seu fim quanto possível. A mesma prática está em vigor para curtir o Markdowns.


Estratégia de negociação da Wyckoff.


Depois de realizar sua análise Wyckoff, você deve reconhecer o ciclo atual do mercado. Para aproveitar o ciclo atual, devemos ter um plano de negociação no local que possamos executar. Então, vamos agora discutir algumas regras em torno de uma estratégia de negociação da Wyckoff, que o ajudará a iniciar e administrar seus negócios dentro do ciclo de preços.


Wyckoff Trade Entry.


Você deve inserir uma negociação quando a ação de preço está em trânsito de acumulação para marcação e de distribuição para Markdown. Primeiro, você precisaria confirmar o estágio atual quando o par Forex estiver variando. Isso ajudaria a identificar os fundos crescentes para uma acumulação e diminuição das partes superiores para Distribuição. Além disso, seria útil analisar o movimento de preço anterior para pistas adicionais.


Outra maneira que você pode tentar confirmar uma fase de acumulação ou distribuição é identificando uma primavera, que é o comportamento de ação de preço de transição que geralmente ocorre entre os estágios do ciclo.


Os padrões de gráfico também podem ser úteis na identificação de processos de acumulação e distribuição no gráfico. O preço potencial se move para fora de um padrão pode ajudá-lo a identificar a transição para um Markup ou um Markdown.


O comércio atual vem quando a ação de preço quebra o intervalo na direção do movimento esperado. Por exemplo, você poderia comprar o par de moedas quando o preço quebra o intervalo plano pelo nível superior. Contrariamente a isso, você pode vender o par de moedas quando a ação de preço quebra o nível de suporte inferior da área de Distribuição.


Além disso, você deve manter o olho no volume para pistas adicionais que confirmam que sua decisão está correta.


Ordem de Perda Stop Stop Wyckoff.


Como você está bem ciente, não há nenhuma coisa certa na negociação Forex. Portanto, você sempre deve usar uma ordem de perda de parada ao abrir uma negociação. Se você estiver negociando um Market, sua ordem stop loss deve estar localizada abaixo do ponto mais baixo da fase de acumulação. Se você estiver negociando um Markdown, sua ordem de perda de stop deve ser posicionada acima do ponto mais alto durante a fase de Distribuição.


Wyckoff Tome Lucro.


Você pode usar análise de ação de preço para gerenciar seus pontos de lucro. Vamos discutir um caso em que você troca um Markup.


Uma indicação de que o preço está em trânsito de uma marcação para uma distribuição é a presença de tops descendentes no gráfico. Este evento deve fazer com que você perceba que um possível selloff pode ocorrer agora.


Outro sinal de saída no gráfico seria uma mola de baixa no gráfico. Se você detectar, então você gostaria de sair do seu comércio, porque a ação de preço entrou no estágio final da curva de Distribuição.


A terceira maneira pela qual você pode gerenciar sua saída é manter um olho para desenvolver padrões de cartazes e padrões de castiçal. Detectar uma formação de reversão pode ser um sinal de que o preço pode ser devido para uma correção ou mudança de tendência.


Uma coisa é certa, a análise de Wyckoff e as técnicas de ação de preços vão de mãos dadas. Portanto, a análise de ação de preços é uma ótima maneira de iniciar e gerenciar negócios dentro do ciclo de preços da Wyckoff. Você sempre deve ser flexível em sua análise e aberto ao que o mercado está fazendo em qualquer momento. Esteja pronto para agir de uma forma que esteja em sintonia com as informações de mercado atuais disponíveis, conforme evidenciado em seu gráfico de preços.


Exemplo de Método de Negociação Wyckoff.


Agora vamos mostrar a análise de mercado da Wyckoff em ação, usando a estratégia de negociação que discutimos acima. Dê uma olhada nesta imagem:


Acima de você, veja o gráfico H4 do par Forex USD / CHF para maio a julho de 2018. A imagem mostra uma abordagem de análise técnica baseada em Wyckoff para o par de moedas.


A imagem começa com o USD / CHF em uma fase de Distribuição. De repente, a ação de preço quebra o nível superior da faixa de Distribuição. No entanto, os volumes de negociação naquele momento estão diminuindo, o que põe em causa a autenticidade da fuga. Portanto, podemos argumentar que um padrão Spring no gráfico pode estar se formando.


A ação do preço reverte depois e quebra o nível mais baixo do canal de Distribuição no aumento do volume. Você pode vender o USD / CHF neste momento, colocando uma perda de stop acima do ponto mais alto da faixa de Distribuição conforme mostrado na imagem.


Veja que o Markdown começa logo após o selloff e o preço do Swissy diminui mais de 4% em menos de uma semana. Em seguida, vemos um movimento de lado, o que sugere que a fase de Markdown provavelmente esteja completa. Você fecharia seu comércio quando a ação de preço começar a criar topes crescentes no gráfico (linha amarela). Também temos um padrão de gráfico duplo inferior criado nos dois primeiros fundos - outro motivo para fechar o comércio.


O preço termina o estágio do Markdown e inicia uma acumulação, que pode ser vista no canal horizontal azul. Durante a acumulação, vemos que o preço diminui em volumes decrescentes e quebra o canal azul para baixo. Como os volumes estão diminuindo, antecipamos um padrão Spring ao invés de um breakout válido.


Observe a barra de Volume no círculo verde. Isso reverte a tendência do volume decrescente. Neste momento, a ação de preço termina a Primavera e começa um aumento. Alguns períodos mais tarde, vemos uma ruptura através do nível superior do canal de acumulação. Este é um sinal de compra forte, que você poderia usar para prolongar o par USD / CHF. Você deve colocar a sua ordem de perda de parada abaixo do ponto mais baixo do processo de acumulação, conforme mostrado na imagem.


A ação do preço entra em um estágio de marcação depois. O par Forex USD / CHF aumenta criando aumentos mais altos. Após um aumento de 3,67%, a ação do preço começa a variar. O triângulo roxo mostra que a ação do preço sai da sua tendência de alta verde e cria um movimento lateral. A ruptura de queda através da linha de tendência de crescimento verde é um sinal de que o estágio de marcação provavelmente está concluído e a nova etapa de Distribuição está a caminho. De repente, o nível superior da gama triangular fica quebrado em volumes decrescentes. Este é outro padrão Spring no gráfico. Você poderia fechar sua posição longa lá na suposição de que o preço reverterá e entrará no estágio do Markdown.


Conclusão.


Richard Wyckoff era um famoso comerciante de ações e investidor, que desenvolveu uma teoria do mercado baseada em Price Cycles. Existem duas regras importantes da Wyckoff que você deve lembrar: os movimentos de preços nunca são os mesmos. O mercado é único e tem sua própria mentalidade criando movimentos de preços diferentes a cada vez. A importância de um movimento de preços vem quando se compara com o comportamento dos preços anteriores. O ciclo de preços da Wyckoff afirma que existem quatro etapas em um mercado: Markup de acumulação de acumulação Markdown O padrão de primavera é um movimento de preço acentuado que quebra um canal de faixas na direção oposta à fuga real esperada. Esta falha falha aparece durante volumes baixos e muitas vezes é revertida para enviar o preço para o próximo estágio. Existem três regras importantes de Wyckoff: Fornecer versus esforço de demanda versus resultado Causa vs. Efeito Os volumes são importantes ao negociar o ciclo de preços da Wyckoff. Fugas autênticas aparecem em volumes de negociação crescentes e altos. Se os volumes estão diminuindo em um breakout, a probabilidade de um breakout real é reduzida. Estratégia de negociação de Wyckoff: abra um comércio quando o preço se transita de Acumulação para marcação ou de Distribuição para Markdown. Coloque uma perda de parada no outro lado do alcance. Mantenha-se no comércio até que a ação do preço e / ou o indicador de volume lhe dê um sinal oposto.


Leve seu comércio para o próximo nível, acelere sua curva de aprendizado com meu programa gratuito de treinamento de Forex.


Como comercializar oferta e demanda ao melhor pelo poderoso método de negociação da Wyckoff.


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Como comercializar oferta e demanda ao melhor pelo poderoso método de negociação da Wyckoff.


O que está por trás do Método de Negociação da Wyckoff e da Oferta e da Demanda dispostas? Por que os desequilíbrios de oferta e demanda definem o movimento dos preços? Além disso, por que eles governam a consolidação de preços e a tendência? Muitas pessoas não conhecem a estrutura real dos mercados. Deixe-me mostrar as dobradiças da negociação negociação.


Quando você analisa o mercado, você vê o preço que está se movendo e como ele reage convergindo para grandes pedidos. Da mesma forma, você reconhece onde o preço está indo. Então você vê a direção que demora e como acontece a mudança. Além disso, você entende o papel que uma Price Consolidation tem em tudo isso. Na verdade, você vê como os investidores institucionais trabalham no Range of Consolidation.


Descreva tudo isso, descreva também como eu negocio e investe em ações e obrigações, como em Forex e Futuros. Não tenho que procurar a perfeição para obter meus lucros. Mas eu preciso ter claro a Estrutura dos Mercados onde eu investido. Então, eu preciso entender o que governa a faixa de preços da consolidação e a rotação de tendências. Então, por que o preço se move de maneira específica. Além disso, eu tenho que entender por que ele aumenta ou desce e como ele está funcionando.


Os desequilíbrios de oferta e demanda mostram como as Grandes Ordens em bloco atuam. Os Princípios de Negociação da Wyckoff são a raiz de qualquer técnica do mercado de ações. Da mesma forma, é assim para qualquer outro mercado: Forex, Futures, Bonds e muito mais.


Todo mercado, líquido ou não líquido, é o resultado de ordens que movem o preço.


Mesmo que eu ganhe de forma constante para o longo prazo, meu processo de aprendizagem nunca termina. O que eu faço com os Estudantes de Lucrando. Eu compartilho com eles minha Prática de Negociação. Então eles vêem as aplicações práticas do meu conhecimento e experiência.


Como os grandes investidores tomam seus negócios de blocos.


Ordem de bloco.


Um recurso financeiro negociável é uma segurança. Quando Instituições ou Comerciantes definem uma Ordem de Compra ou Venda, eles tomam uma grande quantidade de Valores Mobiliários.


Um grande número de valores mobiliários é uma quantidade de ações que é muito alta. Para Penny Stocks Traders 10.000 poderia parecer uma grande quantidade de ações. Nos mercados líquidos, as instituições podem envolver 100 mil ações como ponto de partida. Mais tarde, eles podem aumentar sua exposição levando mais ações. Estou falando de centenas de milhares de dólares, assim como vários milhões de dólares em Pedidos.


O método de negociação de Wyckoff, de modo que os desequilíbrios de oferta e demanda estão em torno de ordens em bloco e operações de bloqueio.


Block Trade.


Essas Grandes Ordens, que são Blocos de Valores Mobiliários, criam Block Trades.


Envolvendo um número grande de Valores Mobiliários, o Bulk of Trades pode mover o mercado de forma consistente. Isso é possível pelo aumento do volume de negociações.


É quase impossível que um comerciante de varejo simples troque tais tamanhos grandes. Na verdade, é prerrogativa da Hedge Funds e Institutional Investors. Eles injetaram uma grande quantidade de dinheiro no mercado pelos intermediários, de modo que os bancos de investimento.


Block House.


A Block House é uma empresa de corretagem particular que é específica para grandes negócios, cobrando taxas elevadas aos investidores.


Ele gerencia os grandes investimentos para fundos de pensão, fundos acadêmicos, corporações, bancos para seguros e muito mais.


Dá vários serviços para grandes investimentos. Mas o que é relevante é que um Block House negocia as Grandes Ordens de Bloqueio de forma cuidadosa.


A Block House pode gerenciar o dinheiro com foco nesses pontos:


Ele gerencia o investimento evitando induzir alta volatilidade para o mercado. Mantendo relações com corretores, dividiu a Ordem de bloco para diferentes corretores. Ele pode injetar o dinheiro no mercado aumentando a exposição de maneira gradual buscando empurrar o preço. Mesmo que o Investidor decida o Preço da Ordem, procura o melhor negócio para negociações.


A Block House tem habilidades e relações para gerenciar, de forma fácil, ordens de um grande número de Valores Mobiliários.


Na era moderna de Trading e Investing, Block House parece ser um corretor com um gerente de conta direto. A diferença é que o Block House gerencia milhões de dólares por comércio. É possível porque a autoridade legitima o Block House para obter a especialização necessária para fazê-lo.


Como o Block House gerencia ordens em bloco e operações de bloqueio.


Método de negociação Wyckoff & # 8211; Ordens em bloco.


Investidores institucionais, Hedge Funds ou Moneyed Traders pedem ajuda para suas casas de bloqueio. Eles sabem que a Block House gerenciará seus investimentos da melhor maneira para obter as melhores ofertas. O Investidor pede um preço de entrada. Mas o Block House pode fazer um acordo para melhores entradas com os investidores e com os corretores.


A Block House faz negócios com corretores que são específicos para o mercado.


A Block House divide a Ordem de bloco é um bloco menor para trocar com diferentes corretores.


A divisão em pedaços permite gerenciar a negociação de muitos títulos. Pode ser difícil ou impossível trocar um grande número de títulos com apenas um corretor. É assim por causa dos regulamentos e dos limites do corretor. Além disso, blocos menores mantêm uma baixa volatilidade.


Para trocas curtas, a dificuldade é maior porque as ações em curto são menores. Então, é necessário emprestá-los no momento certo. Isso acontece, embora grandes investidores e suas casas de bloqueio tenham privilégios especiais.


Custos de execução caros do comércio de blocos.


Existe um problema específico nesse processo. É o quanto custa um comércio. A divisão de uma Ordem de Bloqueio em Operações de Bloco pode se tornar cara. Os corretores cobram um custo por comércio e podem ter comissões diferentes. Então, uma grande parte dos negócios tem um custo de execuções que depende do número de negociações a serem abertas.


Isso significa que para Block Orders em um mercado, o Block House tem que limitar o número ou os negócios. Da mesma forma, ele tem que limitar o número de corretores e rotas comerciais para executar o Block Trades.


Oferta e Demanda de Disparidade pelo Block Trade.


Obter ou liquidar um grande número de títulos provoca fortes desequilíbrios no mercado. Essas ações afetam o fornecimento e a demanda dispostos em torno do preço no mercado.


A Block House trabalha para gerenciar e reduzir o efeito no mercado da Disparidade de Oferta e Demanda.


A necessidade de conter a volatilidade da Block House pode parecer estranha. Na verdade, é muito estranho que os Market Makers precisem conter a volatilidade que podem causar. Mas há uma razão específica para isso.


Os desequilíbrios de oferta e demanda muito fortes causam muita volatilidade.


Qualquer Market Maker, como um Hedge Fund, define um preço de segurança. Este preço é uma salvaguarda para os interesses dos investidores. Um Hedge Fund pode ganhar muito dinheiro, assumindo riscos aceitáveis. Não precisa cobrar o fundo com a maior parte dos riscos desnecessários. O preço de salvaguarda é um bom preço médio que o mercado atual pode alcançar. The Block House evita que o Desequilíbrio empurra o preço para longe do alvo de segurança.


O Método de Negociação da Wyckoff, com o Volume de Negociação, explora a Disparidade da Demanda de Fornecimento. Além disso, mostra o efeito de Block Trades que Block Houses executa em um Time Interval. Então, em uma Consolidação de Preços, o Método de Negociação da Wyckoff mostra como as Operações de Bloco afetam o mercado.


Quando o Block House executa uma ordem de bloco grande, ele dá uma direção para o comportamento de preços.


Então, o preço pode subir ou largar marcando uma tendência. Isso favorece a negociação dos comerciantes de varejo. Na verdade, os varejistas podem concorrer a negócios de baixo risco que procuram as Ordens de Investidores Institucionais.


A Teoria do Homem Composto para explicar como o preço se move.


De acordo com Wyckoff Stock Market Institute, Richard Demille Wyckoff era uma Autoridade de Negociação. Ele nasceu em 1873 e foi comerciante e educador em ações, commodities e mercados de títulos.


Como Autoridade do Mercado de Valores, ele documentou seu trabalho. Desta forma, ele definiu o método de negociação e investimento da Wyckoff em ações.


O método de negociação Wyckoff mostra a verdade sobre o comércio de grandes números ou títulos.


Richard Wyckoff introduziu o conceito do & # 8220; Composite Man & # 8221; ou & # 8220; Operador composto & # 8221 ;.


... todas as flutuações no mercado e em todas as várias ações devem ser estudadas como se fossem o resultado das operações de um homem. Deixe-nos chamá-lo de Composite Man, & # 8230; & # 8211; Richard Wyckoff.


Ele significa que não é relevante se o que move o mercado é investidores institucionais ou outros. O que é relevante é o impacto que a negociação de uma grande quantidade de Valores Mobiliários tem no mercado.


Então, se você entender como o & # 8220; Composite Man & # 8221; move o mercado, você obtém uma grande vantagem por negociações de baixo risco.


O Homem Composto é uma ferramenta para entender como o preço se move.


Como entrar na mente do Homem Composto.


Método de negociação Wyckoff & # 8211; O Homem Composto acumula Valores Mobiliários.


Por que é tão importante entrar na & # 8220; mind & # 8221; do Homem Composto?


O Homem Composto faz seu trabalho de troca em cada momento e melhor do que qualquer outro. Então, você tem que aprender seus comportamentos e suas ações seguindo o que ele faz.


O que é claro para todos é que o mercado não se move por si só. Na Consolidação de Preços, o Composite Man leva ou liquida os Valores de forma gradual. Quando este número de valores mobiliários é suficientemente elevado, o mercado se esgota da faixa de preço da incerteza.


Isso significa que em um Nível de Demanda, seus Negócios adicionam mais Valores Mobiliários em seu portfólio. Então, ele está acumulando títulos. Em vez disso, em um nível de suprimento, seus negócios reduziram o número de títulos que ele possui. Então, o operador composto está distribuindo valores mobiliários para o mercado.


O Homem Composto representa a ação conjunta dos Market Makers.


Estudando e praticando você tem habilidades para ver e dominar o que move o mercado. Da mesma forma, você entende quem move o preço.


Em um Mercado Líquido como Forex, os Eventos no Calendário Econômico não são a causa do movimento do mercado. Sua ação é muito pequena e não afeta a tendência do mercado. Estudando e observando o tempo de mercado do Forex por tempo, você percebe que isso é assim.


Método de negociação Wyckoff & # 8211; O Composite Man distribui valores mobiliários.


Acumulação, Distribuição e Tendência, em Oferta e Demanda.


Eu sou um comerciante de oferta e demanda. Uma análise detalhada dos desequilíbrios é o que me recompensa dia a dia. Meu foco é em alguns negócios que pagam bem.


Tudo isso é possível estudando a ação de preço com dedicação para o longo prazo. Tudo vem de uma compreensão clara da ação de preço. Isso coloca o comerciante na condição de ter habilidades e experiência para definir pedidos com dias e semanas de antecedência.


O Método de Negociação Wyckoff leva em consideração até mesmo o Volume de Negociação.


O volume de negociação é muito importante em mercados não líquidos como ações de preços baixos. De fato, o volume de negociações em estoque é uma coisa boa a ser conhecida. Isso ajuda a fazer uma boa lista de observação e a entender o que vai se mover.


Além disso, as estratégias e técnicas de Wyckoff mostram o momento certo para abrir um comércio. Isso acontece de acordo com o comportamento dos preços em uma série de consolidação.


Quando a ação de preço mostra incerteza, a melhor entrada é a origem do novo impulso de tendência.


É o Desequilíbrio que afasta o preço do intervalo de preços da incerteza. Não poderia ser o último desequilíbrio na faixa de preço. Mas é o desequilíbrio que começa uma nova tendência, de modo que pica o preço para fora da incerteza.


Ciclo de mercado de Wyckoff.


Método de negociação Wyckoff & # 8211; Ciclo de preços de Wyckoff.


Estes são os famosos padrões de negociação de oferta e demanda para a rotação da tendência:


Então, esses Padrões de Reversão tornam-se muito indicativos. A razão é que eles mostram a reação no final da Progressão de Preços que marca uma Consolidação. Mas eles não se importam e não explicam o Processo que altera a Tendência.


O método de negociação Wyckoff mostra as peculiaridades da rotação da tendência.


Fazendo isso, dá uma maneira de reconhecer os diferentes quadros de rotação de negociação. Além disso, mostra como o Composite Man funciona. Ele compra ou vende, acumulando ou distribuindo títulos. Então, quando os títulos em acumulação prevalecem, o preço inicia uma manifestação em uma marcação. Do mesmo modo, quando os valores mobiliários em distribuição prevalecem, o preço cai em uma redução.


Os elementos-chave da mudança de preço definem o ciclo de mercado da Wyckoff ou o ciclo de preços da Wyckoff.


O mercado desenvolve suas tendências entre períodos de acumulação de demanda e distribuição de suprimentos.


Desta forma, você entende que há 4 fases distintas no comportamento de preços.


O método de negociação Wyckoff mostra essas fases para definir o ciclo de preços de Wyckoff:


Demanda de acumulação e distribuição de suprimentos no método de negociação Wyckoff.


Os desequilíbrios de oferta e demanda definem tudo no mercado. Isto é assim porque o preenchimento de ordens de bloco e, em seguida, a abertura do Block Trades move o preço.


O método Wyckoff de análise técnica deixa claro no gráfico o preenchimento das ordens em bloco. Então, você pode obter picos com picos, assim como uma abertura gradual do Block Trades.


Você vê como os grandes investidores estão reunindo títulos em uma acumulação de demanda. Da mesma forma, você vê onde e como eles estão liquidando os Valores Mobiliários em uma Distribuição de Abastecimento.


A acumulação de demanda ea distribuição de suprimentos são os níveis de oferta e demanda. São intervalos de negociação (ou intervalos de preços de negociação).


Então, agora você entende o Primeiro e o mais importante das Leis de Três Wyckoff.


A Lei da Oferta de Oferta.


Quando a demanda desejada excede a disposição, o preço aumenta. Do mesmo jeito, quando a disponibilidade da oferta exceder a demanda, o preço cai. Provisão de oferta e demanda dá orientação ao mercado e controla o ciclo de mercado da Wyckoff.


Nível persistente e Desequilíbrio na Oposição.


Método de negociação Wyckoff & # 8211; Desequilíbrio na Oposição.


Quando o preço tira um nível de demanda, marca um novo e novo fornecimento que é bom para negociação. Da mesma forma, a retirada de um nível de oferta marca um desequilíbrio de demanda novo e novo.


Esse tipo de desequilíbrio de demanda de suprimentos está em oposição a um comportamento de preços anterior.


Isso significa que uma Disparidade emergente de oferta e demanda está prevalecendo. Então, na faixa de preço de um Desequilíbrio anterior, você pode ver a abertura de novos Trens de Bloco. Isso aumenta a Disparidade contra o desequilíbrio antigo em sua mesma faixa de preços, de modo a em torno disso.


Acumulando ou distribuindo valores mobiliários suficientes, o desequilíbrio emergente aumenta o preço. Então, a ação de preço tira o antigo Desequilíbrio.


Quando um nível de oferta ou demanda exigido faz voltar o preço muitas vezes, é um nível persistente.


The strength of the Imbalance persists because there are still orders to execute. These new and old orders are still enough to give a strong opposition when the price converges.


A Persistent Supply or Demand Level is common in a Trend Rotation. The Price Consolidation shows many convergences to the same Supply or Demand Level. It is an edge of the Price Consolidation.


The taking out of a Persistent Supply or Demand Level gives a Solid Trading Opportunity. The reason is that it marks a concrete changing in the price behavior.


The new and fresh Imbalance in Opposition to the Persistent Level is a strong Imbalance.


In the most of the case, the Opposition doesn’t happen with only one imbalance. Inside and around the Price Range, the Block Trades can mark even two (or more) Imbalances in Opposition.


The Wyckoff Trading Method and Supply Demand Uncertainty.


Wyckoff Trading Method – Trading Range.


The best way to use the concept of the Composite Operator is the Analysis of the Price Range of Uncertainty.


A Price Consolidation becomes a Supply or Demand Level when the price spikes away from it. You can recognize the edges of the Consolidation that define the Price Range.


A Trading Range is a clear Price Consolidation.


This exists because the Price behavior of the previous up or down trend changes. The changing happens because the Supply Demand willing reaches an equilibrium.


The price moves around a Trading Range where the edges are Supply and Demand Imbalances.


You see them moving to a lower time frame.


Indeed, the price action marks a Supply and a Demand that trap the price in a Trading Range. Sometimes edges are clear, other times there is a pin bar with a long tale that could confuse an edge.


Using the Composite Man, you can investigate what happens between these edges. What you see is that the Composite Man is buying or selling. You see how and why he is taking or liquidating securities. He buys to accumulate securities so as he sells to distribute securities.


The Wyckoff Trading Method lets you expect and analyze how the price is going to run out of the uncertainty. So it can show in advance what would be the market direction out of the Trading Price Range.


According to the Richard Wyckoff Trading Method, in a Trading Range, you get Phases and Events.


They are important because they are a way to recognize a set of Rotation Frameworks. In the same way, they show where to set an order in advance.


Wyckoff Phases in Demand Accumulation and Supply Distribution.


Wyckoff Trading Method – Wyckoff Phases in Demand Accumulation.


The Wyckoff Trading Method becomes a priceless resource to analyze the uncertainty in a Price Consolidation.


Richard Wyckoff divides the Price Range of Consolidation is Phases. In this way, he is able to describe the work of the Composite Man in the Trading Range.


I explain this every day to the students of Profiting. Me. I show them the advantage that they get dividing the trading range into phases.


Let me introduce you the Wyckoff Phases for a Trend Rotation:


A – Stopping of the Previous Trend. B – Building a Cause in preparation for a new Trend. C – Decisive test to understand if the market is ready to reverse the previous trend. D – Dominance of Block Trades to reverse the previous trend. E – The Effect of the Cause is the escape from the Trading Range, reversing the trend.


So, now you understand the Second of the Three Wyckoff Laws.


The Law of Cause and Effect.


The Trading Range develops the cause for the Reversing of the Trend so as for the Trend Continuation. Instead, the effect is the marking of a new trend or to continue the previous trend.


The cause lets you estimate the Force of Accumulation so as the Force of Distribution in a Trading Range. Then, you realize how this Force can extend an emerging trend out of the Trading Range of Consolidation.


Wyckoff Trading Method – Wyckoff Phases in Supply Distribution.


The Crucial Role of the Wyckoff Phase C.


The Phase C shows if the market is ready to reverse the previous trend. So, the Composite Man tests the strength in opposition to the previous trend.


In a Demand Accumulation, the remaining supply willing pushes to the Buy Block Orders. This means that it tries to continue the previous bearish trend.


In the same way, in the Supply Distribution, the remaining Demand willing pushes the price up. So, it tries to overwhelm the Sell Block Orders to continue the previous bullish trend.


The Block Houses makes a decisive test to continue the trend.


If the market will continue the previous trend, you will see it in this phase. The Supply or the Demand willing would overwhelm the Block Trades in opposition. So the price could bounce back and the new Sell Block Orders will push it to continue the previous trend.


In the same way, the Wyckoff Trading Method shows in Phase C if the market can reverse the trend.


The testing of the Strength in opposition is a Convergence to a Supply or Demand level in the Trading Range. Then, the price behavior is an imbalance that pushes the price back. Besides, it is possible to get a spike back so as a pivot behind the distal line of the level.


So, these strong market reactions are a sign that the market could go to reverse the trend.


Signs of Dominance in Wyckoff Phase C.


The Wyckoff Trading Method highlights some events that can occur in the Wyckoff Phase C:


Terminal Shakeout and Spring. Upthrust and Upthrust after Distribution.


Their presence is not necessary to reverse the trend. Indeed, they are not occurrences that happen in every Trading Range of Consolidation. But when they occur, they give a great advantage.


They are a Sign of Dominance for the Reversing of the Trend. Indeed, they make easier the decision to trade anticipating the new trend.


The NASDAQ definition of Shakeout says that it is a dramatic change in the market. Speculators sell their positions.


Wyckoff Trading Method – NASDAQ Definition of Shakeout.


Instead, the Investopedia definition of Shakeout says that many investors exit their positions.


Wyckoff Trading Method – Investopedia Definition of Shakeout.


What they say is visible in the chart in many ways.


What is relevant is the sharp movement to and throughout one edge of the Trading Range.


In the Wyckoff Phase C, Spring and Upthrust after Distribution are a definitive test of the Strength in opposition.


As you can understand they happen late in the Price Consolidation.


Many expert traders wait to see them. The reasons are:


Spring and Upthrust after Distribution are signs that the trend could turn in the opposite direction. They offer opportunities to trade catching the profitable bounce back, in the middle of the Trading Range of Consolidation.


1 – Terminal Shakeout – Spring in Wyckoff Phase C.


Wyckoff Trading Method – Wyckoff Phase C – Terminal Shakeout and Spring.


In a Demand Accumulation, a Terminal Shakeout is a rapid depreciation. It makes converge the price to the Bottom Demand Edge of the Trading Range. As a definitive test of the Supply willing, it happens to prepare the market for the markup.


The Spring takes the price behind the distal line of the Demand Edge and reverses its behavior.


This means that the price marks a Low Pivot behind the distal line. Then it pushes the price inside the Trading Range. This can happen either by a gradual recovery or by a rapid recovery of the price.


The Terminal Shakeout makes hit the stop of the buy trades. This affects more the public action and then the retail traders. So, they have to disengage their securities favoring the big investors to take them.


It puts the Large Interests in the condition to accumulate securities at a cheaper price.


Wyckoff Trading Method – Wyckoff Phase C – Spring.


2 – Upthrust – Upthrust After Distribution in Wyckoff Phase C.


Wyckoff Trading Method – Wyckoff Phase C – Upthrust after Distribution.


In a Supply Distribution, an Upthrust is a clear rising of the price. It makes converge the price to the Supply Edge of the Trading Range. As a definitive test of the Demand willing, it happens to prepare the market for the markdown.


If the price rises over the Supply Distribution it marks a High Pivot behind the distal line.


The Upthrust After Distribution takes the price behind the Distal Line of the Supply Edge and reverses its behavior.


Then, it pushes the price back into the Trading Range by a gradual recovery or by a rapid recovery.


This gives a false breakout and makes hit the stop to the Sell trades and Short trades. This affects more the public action and then the retail traders that take wrong trades. So, this favors the Big Investors to take advantage of the higher price before the drop.


Wyckoff Trading Method – Wyckoff Phase C – Upthrust and Upthrust after Distribution.


Some considerations about Wyckoff Phase C.


1 – False Breakout and False Breakdown.


The Spring is False Breakdown so as the Upthrust After Distribution is a False Breakout.


Indeed the Spring is a Bear Trap and the Upthrust After Distribution is a Bull Trap.


This means that there are retail traders that Buy on the breakout or sell on the breakdown. They lose money because they think that the momentum is persisting in a direction. So they Buy high on a high pivot and sell low on a low pivot, both behind the distal line.


2 – Buy on Spring, Sell or Short on Upthrust After Distribution.


Be aware, that the Wyckoff Phase C is in the middle of the Trading Range of Consolidation. It is not reversing the trend. But it shows to you if the price is ready to reverse the trend or not.


When a Spring or an Upthrust After Distribution occurs Traders could open a trade. This is the consideration that traders do. They expect that the Composite Man pushes the price back into the Trading Range.


The Wyckoff Trading Method shows this advantage and it can pay very well. But the market reaction after the pivot behind the distal line could not be a strong and large bounce back. The reason is that the orders in opposition could stop the bounce several times. This gives a choppy price action. So, many times it is better to wait for the lower risk entries in the Wyckoff Phase D.


3 – Spring and Upthrust After Distribution are not necessary.


As I told, it is not necessary to have a Spring or an Upthrust After Distribution to reverse the trend.


Many times the remaining Demand willing or Supply willing is not enough. So the price could not mark a pivot behind the distal line. The decisive test could make converge the price to an edge of the Trading Range and bounce back. In other cases, the action could be too weak to reach the top supply or the bottom demand.


In these situations, the price stays inside the Trading Range of Consolidation.


4 – The Volume of the Trading Negotiations.


The Trading Volume can show how the work of the Composite Man is affecting the market.


In the Wyckoff Trading Method, the Trading Volume can become a big help when you to take a trading decision.


The Trading Volume suggests how to trade the Spring or the Terminal Shakeout. In the same way, it can show how to trade an Upthrust and the Upthrust After Distribution.


For example, you can experience an increase of the volume with the rising or the falling of the price. Later, you can see a slowing of the price rising or falling still having a high volume.


The price progression slows even if the volume is still high because it is going to get a balance. Or better the Supply willing or the Demand willing is getting a strong opposition. There is an increase of the negotiations in opposition to the trend.


This is a sign of a tiring trend and you could expect a price correction so as a consolidation.


So, now you understand the Third of the Three Wyckoff Laws.


The Law of Effort versus Result.


The Changing in the Volume Negotiations is the Effort and the Price Changing is the Result. The Effort causes a Result and it is proportional with the Effort. If the Effort and the Result are opposite you could expect a changing of the trend.


Low-Risk Entries in Wyckoff Phase A and Wyckoff Phase D.


The Wyckoff Trading Method shows you how to trade in the best way the Trading Range of Consolidation.


This is possible because the Trading Range has several important peculiarities.


Indeed, the Wyckoff Trading Method let you see where are the low-risk opportunities. In the same way, you see where the risk of investment is instead very high. Indeed, you want to trade where the risk is the lowest possible and not where the risk is the highest.


In the Wyckoff Phase C, I showed you some crucial signs that let you understand the reversing of the trend. They are fundamental because they can give you an acceptable risk for a trade in Phase D.


But the Trading Range has a beginning and an ending. The beginning is the Wyckoff Phase A. The ending of the consolidation is the Wyckoff Phase E.


In the Wyckoff Phase D, you can set your orders anticipating the reversing of the trend.


It shows also how the price reacts to take out a Supply or Demand Edge of the Trading Range.


So, you understand now where you get the lowest risk entries for your orders in the Trading Range. Besides, you even have clear why they are in the Wyckoff Phase A and in the Wyckoff Phase D.


Stop of the Previous Trend in Wyckoff Phase A.


The Wyckoff Phase A is where the Trading Range of Consolidation begins.


The Supply and Demand willing stops the previous trend and it marks the first edges of the Trading Range.


The stopping of the previous trend can happen with 2 specific Steps:


Before to reach the reversal point, the price marks a Preliminary Imbalance to continue the trend. Later, the price converges to a strong level in opposition or mark the reversal point by a new imbalance. From this Climax Imbalance, it bounces back.


The Preliminary Imbalance gives the first opposition to the trend.


This becomes a reference point in the Price Action. The Block Trades opened in opposition increase the Volume of Negotiation. But these trades are not enough to stop the trend. So, later the trend continues.


A Climax Imbalance is where the large interests stop the trend.


The price progression speeds up going far away from the Preliminary Imbalance. Later, new Block Trades in opposition are enough to stop the trend. This increases the Volume again. This Imbalance could be new or the result a convergence to an old Supply or Demand Level.


The Climax Imbalance has a High Relative Strength. The prevailing of the opposite Block Trades generate an Automatic Reaction. In the Wyckoff Trading Method, this Automatic Reaction is a consistent bounce back.


How to Earn by the Automatic Reaction in Wyckoff Phase A.


Wyckoff Trading Method – Wyckoff Phase A – Stop of the Previous Bearish Trend.


The Automatic Reaction could be immediate (or almost) giving a strong momentum. The large bounce back could be so strong to reach the price range around the Preliminary Imbalance.


Later, the price turns back to approach again the Strong Imbalance. This happens also showing a decreasing of the trading volume.


Besides, this price progression, up and down from the stopping of the previous trend, defines the Trading Range. They are the Preliminary Edges of the Trading Range.


Later, in the Wyckoff Phase B, these Preliminary Edges could get a further changing. This happens by a new High Pivot and a new Low Pivot. They mark new imbalances for a new Supply Edge and a new Demand Edge.


The Price Action in the Wyckoff Phase A is very easy to recognize. The Composite Man begins to accumulate securities or to distribute securities. Indeed, the Wyckoff Phase A is the beginning of a Demand Accumulation. In the same way, it is the beginning of a Supply Distribution.


Usually, the Wyckoff Phase A is a very profitable Price Correction. This can precede the breaking of the previous trend. Then, you get a profitable opportunity by the convergence to an old Supply or Demand Level.


The Block Trades generate the Automatic Reaction, by the convergence. From this Climax Imbalance, the price spikes with a strong momentum to the next opposition. So if you set your order in the convergence you earn a lot of money running the spike.


Wyckoff Trading Method – Wyckoff Phase A – Stop of the Previous Bullish Trend.


Reversing the Trend in Wyckoff Phase D.


The Wyckoff Phases simplify the work and show several reference points. With the Wyckoff Trading Method, you can trade anticipating the new trend.


The Wyckoff Phase D is where the price goes to begin the new trend.


The Composite Man has already done the most of the work in the previous Wyckoff Phases. The remaining supply or demand willing in the Wyckoff Phase C made a test to continue the previous trend. But, the opposite Block Trades prevailed by the accumulation or distribution of securities. So, they pushed the price back into the Trading Range.


The momentum that arrives from the Wyckoff Phase C is ready to push throughout the Trading Range. So, in the Wyckoff Phase D, the price moves to the other edge of the Trading Range.


To make this, the price action marks some peaks that keep up the momentum in a direction. These are Points of Supply or Points of Demand in Wyckoff Phase D. The first of them offer the possibility to buy low or sell high inside the consolidation range.


When the price reaches the other edge, it is almost ready to go outside of the Trading Range.


The price can mark a High Pivot or a Low Pivot behind the Distal Line of the Edge reached. This can happen showing also an increase in the Trading Volume.


It is a Sign of Strength in a Demand Accumulation. In the same way, It is a Sign of Weakness in a Supply Distribution.


The price could not go outside the Trading Range with an immediate action. It begins a range of uncertainty between the Latest Point of Supply or Demand and the Low or High Pivot.


How to Earn Anticipating the Reversing of the Trend in Wyckoff Phase D.


Wyckoff Trading Method – Wyckoff Phase D – The Price rises to Supply Edge.


In the Wyckoff Phase B and Wyckoff Phase C, the Operators push the price to a Supply or Demand Edge. The purpose is to continue the previous trend. Of course, at least one of the Edges of the Trading Range is a Persistent Level.


Every new test of a Persistent Level pushes the price back in a new weaker swing. This marks a chain of Higher Lows so as a Chain of Lower Highs, inside the Trading Range.


In the Wyckoff Phase C, the Composite Man marks a Spring or an Upthrust after Distribution. The strong imbalance pushes the price back. This could break the Pivots Chain in the Trading Range moving the price to the Wyckoff Phase D.


The breaking of every Pivots Chain marks a new and fresh imbalance. In the Wyckoff Trading Method, this offers a first trading opportunity. The price retraces back to the broken Pivots Chain and converges to the new and fresh imbalance.


In this way, you can open a trade in the Trading Range anticipating the reversing of the trend. Indeed, you Buy low in the Demand Accumulation by the throwback. In the same way, you Sell high in the Supply Distribution.


In these cases, the risk per trade is the lowest that the Trading Range can offer.


This first peak keeps up the momentum to carry the price to the other edge of the Trading Range.


Running throughout the Trading Range, the price action will mark other entry points. This gives you the possibility to add more to your trade, before of the Wyckoff Phase E.


Setting your orders to trade anticipating the reversing of the trend, you understand the Power of the Wyckoff Trading Method.


Wyckoff Trading Method – Wyckoff Phase D – The price drops to Demand Edge.


Cause and Effect in Wyckoff Phase B and Wyckoff Phase E.


I already mentioned the Second Law of Wyckoff: The Law of Cause and Effect.


All the Trading Range of Consolidation is a process that Build, Develop and Increase a Cause. This will give an Effect at the end of Consolidation.


The Wyckoff Phase C gives important reference points for your trading. Instead, in the Wyckoff Phase D, you set your orders to trade anticipating the trend.


So, if you make the right analyze, the Effect in the Wyckoff Phase E gives you a large profit.


Building a Cause in Wyckoff Phase B.


Wyckoff Trading Method – Wyckoff Phase B – Accumulating Securities.


The Wyckoff Phase B shows some specific features:


The price tends to have a choppy behavior. The remaining Supply or Demand willing is still consistent to continue the trend. It can change the Preliminary Edges of the Trading Range. The Composite Man increases his exposure building a cause.


In the most of the cases, the Wyckoff Phase B is not good for trading, because the chart is choppy. You see the securities accumulation so as the securities distribution. This is visible by the floating of the chart.


The large interests have a Specific Goal:


In a Supply Distribution, it is to exhaust as much as possible the remaining demand willing. In a Demand Accumulation, it is to take as much as possible of the remaining supply willing.


They accumulate or distribute as much they can and this can take a long time. Indeed, the Wyckoff Phase B is the longest phase in the Wyckoff Trading Method. They do this preparing and anticipating the markup or the markdown.


The price behavior can mark high pivots so as low pivots. Indeed, the Wyckoff Trading Method considers Upthrusts and the Secondary Imbalances. Some of them happen behind the distal line of the Preliminary Edges. They are Signals of Strength so as Signals of Weakness. So, they mark a new Supply edge so as a new Demand edge of the Trading Range.


What you see is that the price action marks and tests demand and supply levels. Besides, in a Trend Rotation, you see an edge of the Trading Range that becomes a Persistent Level.


Wyckoff Phase B – Distributing Securities.


Getting the Effect in Wyckoff Phase E.


Wyckoff Trading Method – Wyckoff Phase E – The Markup.


The Trading Range of Consolidation finishes with the Wyckoff Phase E. It is the Effect of accumulation or distribution in the Trading Range.


In Wyckoff Trading Method, Signs of Strength so as Signs of Weakness in Wyckoff Phase D, are the last step.


They show the Block Houses that accumulate or distribute more securities. This happens before to leave behind the Trading Range of Consolidation.


The rising or the drop makes clear the new trend by a Markup or a Markdown.


So, the Trading Range becomes a Demand Accumulation or a Supply Distribution. The Demand willing prevails and then the price rises in a Markup. So as the Supply willing prevails and then the price drops in a Markdown.


Any new trend is not linear, the price rises or drop marking steps.


Every step exists because a new imbalance keeps up the trend momentum.


So, new Block Trades take or release more Securities on the way to reach the next trend rotation.


You understand that any relevant price correction could be an opportunity to trade, accepting the risk. This means that you set an order to follow the trend. The reason is that any price correction marks a new Supply or Demand Level.


The price can even show an acceleration in its progression. Then, the price goes far away from the trend by a relevant momentum. In this case, the bounce back would be an Automatic Reaction to begin a new Consolidation.


The bounce back can happen in 2 ways:


By a convergence to a Supply or Demand Level in opposition. Marking a new imbalance before to reach a visible old and strong level.


So, the new Automatic Reaction shows the Wyckoff Phase A for a new Trading Range of Consolidation.


Wyckoff Trading Method – Wyckoff Phase E – The Markdown.


Conclusion.


Wyckoff Trading Method – Wyckoff Estate.


Richard Wyckoff has become so rich, to live in an estate with 9 and a half acres in long island. Becoming richer, Richard Demille Wyckoff turned his focus on Education, Teaching, and Publishing.


The Price Action is everything and the Wyckoff Trading Method shows all you need for trading. You see how your perception of trading changes when you see all the peculiarities.


The Three Wyckoff Laws are an inestimable resource for your trading:


What they show you is how the market move, what is the cause and how to measure the Effect.


The Wyckoff Trading Method, since the beginning of XX century, gives an enormous help. It shows to you where and how to take your trade, anticipating the new trend. Then earning.


I explain to the Profiting. Me students the importance to understand the Rotation Frameworks.


The most common Rotation Frameworks are the Parabolic Rotation and the Head Shoulders. The Trading Range of Consolidation includes and absorbs any Trading Rotation Framework.


The Rotation Frameworks at the beginning and at the ending of the Consolidation are the easiest to trade. They give the lowest risk and the most profitable opportunities. In an easy Trading Scenario, you get the Parabolic Rotation Framework in Wyckoff Phase A. Instead, you can get a Head Shoulders Framework when the price moves from Wyckoff Phase C to Wyckoff Phase D.


The Wyckoff Trading Method clarifies the Price Action in the best way. It opens your eyes to all those peculiarities that you must know to earn large profits.


So, let me ask you a question:


What are your experiences about trading the reversing of the trend?


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How to Trade Supply and Demand at the Best by the Powerful Wyckoff Trading Method.


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How to Trade Supply and Demand at the Best by the Powerful Wyckoff Trading Method.


What is behind the Wyckoff Trading Method and the Supply and Demand willing? Why do the Supply and Demand Imbalances define the price moving? Besides, why do they rule the price consolidation and the trend? Many people don’t know about the real structure of the Markets. Let me show the hinges of the trading negotiation.


When you analyze the market you see the price that is moving and how it reacts converging to big orders. In the same way, you recognize where the price is going. So you see the direction that it takes and how the moving happens. Besides, you understand the role that a Price Consolidation has in all this. Indeed, you see how the institutional investors work into the Range of Consolidation.


Describe all this, describe also how I trade and invest in Stocks and Bonds so as in Forex and Futures. I have not to look for perfection to get my profits. But I need to have clear the Structure of the Markets where I invest. Then, I need to understand what rules the Price Range of Consolidation and the Trend Rotation. Then, why the price moves in a specific way. Besides, I have to understand why it spikes up or down and how it is running.


The Supply and Demand Imbalances shows how Big Block Orders act. The Wyckoff Trading Principles are the root of any Stock market technique. In the same way, it is so for any other marketplace: Forex, Futures, Bonds and much more.


Every marketplace, Liquid or Non-Liquid, is the result of Orders that move the price.


Even if I earn in a constant way for the long-term, my learning process never ends. What I do with the Students of Profiting. Me is sharing with them my Trading Practice. Then they see the practical applications of my knowledge and experience.


How Big Investors take their Block Trades.


Block Order.


A Tradable Financial Asset is a Security. When Institutions or Traders set a Buy or Sell Block Order, they take a large number of Securities.


A large number of Securities is an amount of shares that is very high. For Penny Stocks Traders 10.000 could seem like a very big amount of shares. On Liquid Markets, Institutions can engage 100.000 shares as a starting point. Later, they can increase their exposure taking more shares. I am talking about hundreds of thousands of dollars so as several millions of dollars on Orders.


The Wyckoff Trading Method so as Supply and Demand Imbalances are all around Block Orders and Block Trades.


Block Trade.


These Big Orders, that are Blocks of Securities, create Block Trades.


Involving a big number Securities, such Bulk of Trades can move the market in a consistent way. This is possible by the rising of the volume of negotiations.


It is almost impossible for a simple retail trader to trade such big sizes. Indeed, It is a prerogative of Hedge Funds and Institutional Investors. They inject a large amount of money to the market by Intermediaries so as Investment Banks.


Block House.


A Block House is a particular brokerage firm that is specific for large trades, charging high fees to the Investors.


It manages the big investments for Pension Funds, Academic Funds, Corporations, Banks to Insurance, and more.


It gives several services for big investments. But what is relevant is that a Block House trades the Big Block Orders in a careful way.


A Block House can manage the money with the focus on these points:


It manages the investment avoiding to induce high volatility to the market. Keeping relations with brokers, it split the Block Order to different brokers. It can inject the money into the market increasing the exposure in a gradual way looking to push the price. Even if the Investor decides the Order Price, it looks for the best deal for trades.


A Block House has skills and relations to manage, in an easy way, orders of a big number of Securities.


In the modern age of Trading and Investing, the Block House seems like a broker with a direct account manager. The difference is that the Block House manages Millions of Dollars per trade. It is possible because the authority legitimises the Block House to get the necessary specialization to do it.


How the Block House manages Block Orders and Block Trades.


Wyckoff Trading Method – Block Orders.


Institutional Investors, Hedge Funds or Moneyed Traders ask help to their Block Houses. They know that the Block House will manage their investments in the best way to get the best deals. The Investor asks for an entry price. But the Block House can make a deal for better entries with the Investors and with the brokers.


The Block House makes deals with brokers that are specific for the marketplace.


The Block House splits the Block Order is smaller blocks to trade with different brokers.


The splitting in chunks lets manage the trading of a lot of securities. It could be difficult or impossible to trade a big number of Securities with only one broker. It is so because of the regulations and the broker limits. Besides, smaller blocks keep a low volatility.


For short trades, the difficulty is bigger because the shares to short are fewer. Then, it is necessary to borrow them at the right time. This happens although big investors and their Block Houses have special privileges.


Expensive Execution Costs of the Block Trade.


There is a particular problem in this process. It is how much a trade costs. The splitting of a Block Order in Block Trades can become expensive. The brokers charge a cost per trade and they can have different commissions. Then, a bulk of trades has an executions cost that depends on the number of trades to open.


This means that for Block Orders in a marketplace, the Block House has to limit the number or trades. In the same way, it has to limit the number of brokers and trading routes to execute the Block Trades.


Supply and Demand Disparity by the Block Trade.


Get or Liquidate a big number of Securities causes strong Imbalances in the market. These actions affect the Supply and Demand willing around the Price in the market.


The Block House works to manage and cut the effect on the market of the Supply and Demand Disparity.


The necessity to contain the volatility by the Block House could sound strange. Indeed, it is very strange that Market Makers need to contain the volatility that they can cause. But there is a specific reason for this.


Very Strong Supply and Demand Imbalances cause too much volatility.


Any Market Maker, like a Hedge Fund, defines a Safety Target Price. This price is a safeguard for the interests of investors. A Hedge Fund can earn a lot of money, taking acceptable risks. It doesn’t need to charge the fund with the most of the unnecessary risks. The safeguard price is a good average price that the current market can reach. The Block House avoid that the Imbalance pushes the price away from the safety target.


The Wyckoff Trading Method, with the Trading Volume, exploits the Supply Demand Disparity. Besides, it shows the effect of Block Trades that the Block Houses execute in a Time Interval. So, in a Price Consolidation, the Wyckoff Trading Method shows how the Block Trades affect the market.


When the Block House executes a Large Block Order, it gives a direction to the price behavior.


So, the price can rise or drop marking a trend. This favors the trading of the retail traders. Indeed, the retailers can run for low-risk trades looking for the Institutional Investors Orders.


The Theory of the Composite Man to explain How the price moves.


According to Wyckoff Stock Market Institute, Richard Demille Wyckoff was a Trading Authority. He was born 1873 and he was a trader and educator in stock, commodity and bond markets.


As a Stock Market Authority, he documented his work. In this way, he defined the Wyckoff method of trading and investing in stocks.


The Wyckoff Trading Method shows the truth about trading large numbers or Securities.


Richard Wyckoff introduced the concept of the “Composite Man” or “Composite Operator”.


…all the fluctuations in the market and in all the various stocks should be studied as if they were the result of one man’s operations. Let us call him the Composite Man,… – Richard Wyckoff.


He means that it is not relevant if what moves the market is an Institutional Investors or others. What is relevant is the impact that the trading of a large amount of Securities has in the market.


So, if you understand how the “Composite Man” moves the market you get a great advantage by low-risk trades.


The Composite Man is a tool to understand how the price moves.


How to go inside the mind of the Composite Man.


Wyckoff Trading Method – The Composite Man accumulates Securities.


Why is so important to go inside the “mind” of the Composite Man?


The Composite Man does his Trading Job in every time and better than any other. Then, you have to learn his behaviors and his actions following what he does.


What is clear to everybody is that the market doesn’t move by itself. In the Price Consolidation, the Composite Man takes or liquids Securities in a gradual way. When this number of securities is high enough, the market runs out of the price range of uncertainty.


This means that in a Demand Level, his Trades add more Securities in his portfolio. Then, he is Accumulating Securities. Instead, in a Supply Level, his Trades cut the numbers of Securities he owns. Then, the Composite Operator is Distributing Securities to the Market.


The Composite Man represents the joint action of the Market Makers.


Studying and Practicing you get skills to see and master what moves the market. In the same way, you understand who moves the price.


In a Liquid Market like Forex, the Events in the Economic Calendar are not the cause that moves the market. Their action is very small and it doesn’t affect the market trend. Studying and Observing the Forex Market time by time, you realize that this is so.


Wyckoff Trading Method – The Composite Man distributes Securities.


Accumulation, Distribution, and Trend, in Supply and Demand.


I am a Supply and Demand Trader. A detailed analysis of the Imbalances is what rewards me day by day. My focus is on a few trades that pay well.


All this is possible studying the price action with dedication for the long-term. Everything comes from a clear comprehension of the Price Action. This puts the trader in the condition to have skills and experience to set orders days and weeks in advance.


The Wyckoff Trading Method takes into consideration even the Trading Volume.


The Trading Volume is very important on Non-Liquid Marketplaces like Low Price Stocks. Indeed, the Volume of Negotiations on Stocks is a good thing to know. It helps to make a good watch list and to understand what is going to move.


Besides, the Wyckoff strategies and techniques show the right time to open a trade. This happens according to the price behavior in a range of consolidation.


When the price action shows uncertainty, the best entry is at the origin of the new trend momentum.


It is the Imbalance that pushes the price away from the price range of uncertainty. It could not be the last imbalance in the price range. But it is the imbalance that begins a new trend so as that spikes the price out of the uncertainty.


Wyckoff Market Cycle.


Wyckoff Trading Method – Wyckoff Price Cycle.


These are the famous Supply and Demand Trading Patterns for the Trend Rotation:


So, these Reversal Patterns becomes very indicative. The reason is that they show the reaction at the end of the Price Progression that marks a Consolidation. But they don’t care and don’t explain the Process that change the Trend.


The Wyckoff Trading Method shows the peculiarities of the Trend Rotation.


Doing this, it gives a way to recognize the different Trading Rotation Frameworks. Besides, it shows how the Composite Man works. He Buys or Sells, accumulating or distributing securities. So, when the securities in accumulation prevail the price starts a rally in a markup. In the same way, when the securities in distribution prevail the price drops in a markdown.


The key elements of the price changing define the Wyckoff Market Cycle or Wyckoff Price Cycle.


The Market develops its trends between periods of Demand Accumulation and Supply Distribution.


In this way, you understand that there are 4 distinct phases in the price behavior.


The Wyckoff Trading Method shows these phases to define the Wyckoff Price Cycle:


Demand Accumulation and Supply Distribution in the Wyckoff Trading Method.


Supply and Demand Imbalances define everything in the market. This is so because the filling of Block Orders, and then the opening of Block Trades move the price.


The Wyckoff Method of technical analysis makes clear in the chart the filling of the Block Orders. Then, you can get peaks with spikes, so as a gradual opening of Block Trades.


You see how Big Investors are gathering Securities in a Demand Accumulation. In the same way, you see where and how they are liquidating Securities in a Supply Distribution.


The Demand Accumulation and the Supply Distribution are the Supply and Demand Levels. They are Trading Ranges (or Trading Price Ranges).


So, now you understand the First and the most important of the Three Wyckoff Laws.


The Law of Supply Demand.


When the demand willing exceeds the supply willing, the price rises. In the same way, when the supply willing exceeds the demand willing the price falls. Supply and Demand willing gives a direction to the market and rules the Wyckoff Market Cycle.


Persistent Level and Imbalance in Opposition.


Wyckoff Trading Method – Imbalance in Opposition.


When the price takes out a Demand Level, it marks a new and fresh Supply that is good for trading. In the same way, the taking out of a Supply Level marks a new and fresh Demand Imbalance.


This kind of Supply Demand Imbalance is in Opposition to a previous price behavior.


This means that an emerging Supply and Demand Disparity is prevailing. Then, in the Price Range of a previous Imbalance, you can see the opening of new Block Trades. This increases the Disparity counter the old Imbalance into its same Price Range so as around it.


Accumulating or Distributing enough Securities the emerging Imbalance spikes the price. So, the price action takes out the old Imbalance.


When a Used Supply or Demand Level makes bounce back the price many times, it is a Persistent Level.


The strength of the Imbalance persists because there are still orders to execute. These new and old orders are still enough to give a strong opposition when the price converges.


A Persistent Supply or Demand Level is common in a Trend Rotation. The Price Consolidation shows many convergences to the same Supply or Demand Level. It is an edge of the Price Consolidation.


The taking out of a Persistent Supply or Demand Level gives a Solid Trading Opportunity. The reason is that it marks a concrete changing in the price behavior.


The new and fresh Imbalance in Opposition to the Persistent Level is a strong Imbalance.


In the most of the case, the Opposition doesn’t happen with only one imbalance. Inside and around the Price Range, the Block Trades can mark even two (or more) Imbalances in Opposition.


The Wyckoff Trading Method and Supply Demand Uncertainty.


Wyckoff Trading Method – Trading Range.


The best way to use the concept of the Composite Operator is the Analysis of the Price Range of Uncertainty.


A Price Consolidation becomes a Supply or Demand Level when the price spikes away from it. You can recognize the edges of the Consolidation that define the Price Range.


A Trading Range is a clear Price Consolidation.


This exists because the Price behavior of the previous up or down trend changes. The changing happens because the Supply Demand willing reaches an equilibrium.


The price moves around a Trading Range where the edges are Supply and Demand Imbalances.


You see them moving to a lower time frame.


Indeed, the price action marks a Supply and a Demand that trap the price in a Trading Range. Sometimes edges are clear, other times there is a pin bar with a long tale that could confuse an edge.


Using the Composite Man, you can investigate what happens between these edges. What you see is that the Composite Man is buying or selling. You see how and why he is taking or liquidating securities. He buys to accumulate securities so as he sells to distribute securities.


The Wyckoff Trading Method lets you expect and analyze how the price is going to run out of the uncertainty. So it can show in advance what would be the market direction out of the Trading Price Range.


According to the Richard Wyckoff Trading Method, in a Trading Range, you get Phases and Events.


They are important because they are a way to recognize a set of Rotation Frameworks. In the same way, they show where to set an order in advance.


Wyckoff Phases in Demand Accumulation and Supply Distribution.


Wyckoff Trading Method – Wyckoff Phases in Demand Accumulation.


The Wyckoff Trading Method becomes a priceless resource to analyze the uncertainty in a Price Consolidation.


Richard Wyckoff divides the Price Range of Consolidation is Phases. In this way, he is able to describe the work of the Composite Man in the Trading Range.


I explain this every day to the students of Profiting. Me. I show them the advantage that they get dividing the trading range into phases.


Let me introduce you the Wyckoff Phases for a Trend Rotation:


A – Stopping of the Previous Trend. B – Building a Cause in preparation for a new Trend. C – Decisive test to understand if the market is ready to reverse the previous trend. D – Dominance of Block Trades to reverse the previous trend. E – The Effect of the Cause is the escape from the Trading Range, reversing the trend.


So, now you understand the Second of the Three Wyckoff Laws.


The Law of Cause and Effect.


The Trading Range develops the cause for the Reversing of the Trend so as for the Trend Continuation. Instead, the effect is the marking of a new trend or to continue the previous trend.


The cause lets you estimate the Force of Accumulation so as the Force of Distribution in a Trading Range. Then, you realize how this Force can extend an emerging trend out of the Trading Range of Consolidation.


Wyckoff Trading Method – Wyckoff Phases in Supply Distribution.


The Crucial Role of the Wyckoff Phase C.


The Phase C shows if the market is ready to reverse the previous trend. So, the Composite Man tests the strength in opposition to the previous trend.


In a Demand Accumulation, the remaining supply willing pushes to the Buy Block Orders. This means that it tries to continue the previous bearish trend.


In the same way, in the Supply Distribution, the remaining Demand willing pushes the price up. So, it tries to overwhelm the Sell Block Orders to continue the previous bullish trend.


The Block Houses makes a decisive test to continue the trend.


If the market will continue the previous trend, you will see it in this phase. The Supply or the Demand willing would overwhelm the Block Trades in opposition. So the price could bounce back and the new Sell Block Orders will push it to continue the previous trend.


In the same way, the Wyckoff Trading Method shows in Phase C if the market can reverse the trend.


The testing of the Strength in opposition is a Convergence to a Supply or Demand level in the Trading Range. Then, the price behavior is an imbalance that pushes the price back. Besides, it is possible to get a spike back so as a pivot behind the distal line of the level.


So, these strong market reactions are a sign that the market could go to reverse the trend.


Signs of Dominance in Wyckoff Phase C.


The Wyckoff Trading Method highlights some events that can occur in the Wyckoff Phase C:


Terminal Shakeout and Spring. Upthrust and Upthrust after Distribution.


Their presence is not necessary to reverse the trend. Indeed, they are not occurrences that happen in every Trading Range of Consolidation. But when they occur, they give a great advantage.


They are a Sign of Dominance for the Reversing of the Trend. Indeed, they make easier the decision to trade anticipating the new trend.


The NASDAQ definition of Shakeout says that it is a dramatic change in the market. Speculators sell their positions.


Wyckoff Trading Method – NASDAQ Definition of Shakeout.


Instead, the Investopedia definition of Shakeout says that many investors exit their positions.


Wyckoff Trading Method – Investopedia Definition of Shakeout.


What they say is visible in the chart in many ways.


What is relevant is the sharp movement to and throughout one edge of the Trading Range.


In the Wyckoff Phase C, Spring and Upthrust after Distribution are a definitive test of the Strength in opposition.


As you can understand they happen late in the Price Consolidation.


Many expert traders wait to see them. The reasons are:


Spring and Upthrust after Distribution are signs that the trend could turn in the opposite direction. They offer opportunities to trade catching the profitable bounce back, in the middle of the Trading Range of Consolidation.


1 – Terminal Shakeout – Spring in Wyckoff Phase C.


Wyckoff Trading Method – Wyckoff Phase C – Terminal Shakeout and Spring.


In a Demand Accumulation, a Terminal Shakeout is a rapid depreciation. It makes converge the price to the Bottom Demand Edge of the Trading Range. As a definitive test of the Supply willing, it happens to prepare the market for the markup.


The Spring takes the price behind the distal line of the Demand Edge and reverses its behavior.


This means that the price marks a Low Pivot behind the distal line. Then it pushes the price inside the Trading Range. This can happen either by a gradual recovery or by a rapid recovery of the price.


The Terminal Shakeout makes hit the stop of the buy trades. This affects more the public action and then the retail traders. So, they have to disengage their securities favoring the big investors to take them.


It puts the Large Interests in the condition to accumulate securities at a cheaper price.


Wyckoff Trading Method – Wyckoff Phase C – Spring.


2 – Upthrust – Upthrust After Distribution in Wyckoff Phase C.


Wyckoff Trading Method – Wyckoff Phase C – Upthrust after Distribution.


In a Supply Distribution, an Upthrust is a clear rising of the price. It makes converge the price to the Supply Edge of the Trading Range. As a definitive test of the Demand willing, it happens to prepare the market for the markdown.


If the price rises over the Supply Distribution it marks a High Pivot behind the distal line.


The Upthrust After Distribution takes the price behind the Distal Line of the Supply Edge and reverses its behavior.


Then, it pushes the price back into the Trading Range by a gradual recovery or by a rapid recovery.


This gives a false breakout and makes hit the stop to the Sell trades and Short trades. This affects more the public action and then the retail traders that take wrong trades. So, this favors the Big Investors to take advantage of the higher price before the drop.


Wyckoff Trading Method – Wyckoff Phase C – Upthrust and Upthrust after Distribution.


Some considerations about Wyckoff Phase C.


1 – False Breakout and False Breakdown.


The Spring is False Breakdown so as the Upthrust After Distribution is a False Breakout.


Indeed the Spring is a Bear Trap and the Upthrust After Distribution is a Bull Trap.


This means that there are retail traders that Buy on the breakout or sell on the breakdown. They lose money because they think that the momentum is persisting in a direction. So they Buy high on a high pivot and sell low on a low pivot, both behind the distal line.


2 – Buy on Spring, Sell or Short on Upthrust After Distribution.


Be aware, that the Wyckoff Phase C is in the middle of the Trading Range of Consolidation. It is not reversing the trend. But it shows to you if the price is ready to reverse the trend or not.


When a Spring or an Upthrust After Distribution occurs Traders could open a trade. This is the consideration that traders do. They expect that the Composite Man pushes the price back into the Trading Range.


The Wyckoff Trading Method shows this advantage and it can pay very well. But the market reaction after the pivot behind the distal line could not be a strong and large bounce back. The reason is that the orders in opposition could stop the bounce several times. This gives a choppy price action. So, many times it is better to wait for the lower risk entries in the Wyckoff Phase D.


3 – Spring and Upthrust After Distribution are not necessary.


As I told, it is not necessary to have a Spring or an Upthrust After Distribution to reverse the trend.


Many times the remaining Demand willing or Supply willing is not enough. So the price could not mark a pivot behind the distal line. The decisive test could make converge the price to an edge of the Trading Range and bounce back. In other cases, the action could be too weak to reach the top supply or the bottom demand.


In these situations, the price stays inside the Trading Range of Consolidation.


4 – The Volume of the Trading Negotiations.


The Trading Volume can show how the work of the Composite Man is affecting the market.


In the Wyckoff Trading Method, the Trading Volume can become a big help when you to take a trading decision.


The Trading Volume suggests how to trade the Spring or the Terminal Shakeout. In the same way, it can show how to trade an Upthrust and the Upthrust After Distribution.


For example, you can experience an increase of the volume with the rising or the falling of the price. Later, you can see a slowing of the price rising or falling still having a high volume.


The price progression slows even if the volume is still high because it is going to get a balance. Or better the Supply willing or the Demand willing is getting a strong opposition. There is an increase of the negotiations in opposition to the trend.


This is a sign of a tiring trend and you could expect a price correction so as a consolidation.


So, now you understand the Third of the Three Wyckoff Laws.


The Law of Effort versus Result.


The Changing in the Volume Negotiations is the Effort and the Price Changing is the Result. The Effort causes a Result and it is proportional with the Effort. If the Effort and the Result are opposite you could expect a changing of the trend.


Low-Risk Entries in Wyckoff Phase A and Wyckoff Phase D.


The Wyckoff Trading Method shows you how to trade in the best way the Trading Range of Consolidation.


This is possible because the Trading Range has several important peculiarities.


Indeed, the Wyckoff Trading Method let you see where are the low-risk opportunities. In the same way, you see where the risk of investment is instead very high. Indeed, you want to trade where the risk is the lowest possible and not where the risk is the highest.


In the Wyckoff Phase C, I showed you some crucial signs that let you understand the reversing of the trend. They are fundamental because they can give you an acceptable risk for a trade in Phase D.


But the Trading Range has a beginning and an ending. The beginning is the Wyckoff Phase A. The ending of the consolidation is the Wyckoff Phase E.


In the Wyckoff Phase D, you can set your orders anticipating the reversing of the trend.


It shows also how the price reacts to take out a Supply or Demand Edge of the Trading Range.


So, you understand now where you get the lowest risk entries for your orders in the Trading Range. Besides, you even have clear why they are in the Wyckoff Phase A and in the Wyckoff Phase D.


Stop of the Previous Trend in Wyckoff Phase A.


The Wyckoff Phase A is where the Trading Range of Consolidation begins.


The Supply and Demand willing stops the previous trend and it marks the first edges of the Trading Range.


The stopping of the previous trend can happen with 2 specific Steps:


Before to reach the reversal point, the price marks a Preliminary Imbalance to continue the trend. Later, the price converges to a strong level in opposition or mark the reversal point by a new imbalance. From this Climax Imbalance, it bounces back.


The Preliminary Imbalance gives the first opposition to the trend.


This becomes a reference point in the Price Action. The Block Trades opened in opposition increase the Volume of Negotiation. But these trades are not enough to stop the trend. So, later the trend continues.


A Climax Imbalance is where the large interests stop the trend.


The price progression speeds up going far away from the Preliminary Imbalance. Later, new Block Trades in opposition are enough to stop the trend. This increases the Volume again. This Imbalance could be new or the result a convergence to an old Supply or Demand Level.


The Climax Imbalance has a High Relative Strength. The prevailing of the opposite Block Trades generate an Automatic Reaction. In the Wyckoff Trading Method, this Automatic Reaction is a consistent bounce back.


How to Earn by the Automatic Reaction in Wyckoff Phase A.


Wyckoff Trading Method – Wyckoff Phase A – Stop of the Previous Bearish Trend.


The Automatic Reaction could be immediate (or almost) giving a strong momentum. The large bounce back could be so strong to reach the price range around the Preliminary Imbalance.


Later, the price turns back to approach again the Strong Imbalance. This happens also showing a decreasing of the trading volume.


Besides, this price progression, up and down from the stopping of the previous trend, defines the Trading Range. They are the Preliminary Edges of the Trading Range.


Later, in the Wyckoff Phase B, these Preliminary Edges could get a further changing. This happens by a new High Pivot and a new Low Pivot. They mark new imbalances for a new Supply Edge and a new Demand Edge.


The Price Action in the Wyckoff Phase A is very easy to recognize. The Composite Man begins to accumulate securities or to distribute securities. Indeed, the Wyckoff Phase A is the beginning of a Demand Accumulation. In the same way, it is the beginning of a Supply Distribution.


Usually, the Wyckoff Phase A is a very profitable Price Correction. This can precede the breaking of the previous trend. Then, you get a profitable opportunity by the convergence to an old Supply or Demand Level.


The Block Trades generate the Automatic Reaction, by the convergence. From this Climax Imbalance, the price spikes with a strong momentum to the next opposition. So if you set your order in the convergence you earn a lot of money running the spike.


Wyckoff Trading Method – Wyckoff Phase A – Stop of the Previous Bullish Trend.


Reversing the Trend in Wyckoff Phase D.


The Wyckoff Phases simplify the work and show several reference points. With the Wyckoff Trading Method, you can trade anticipating the new trend.


The Wyckoff Phase D is where the price goes to begin the new trend.


The Composite Man has already done the most of the work in the previous Wyckoff Phases. The remaining supply or demand willing in the Wyckoff Phase C made a test to continue the previous trend. But, the opposite Block Trades prevailed by the accumulation or distribution of securities. So, they pushed the price back into the Trading Range.


The momentum that arrives from the Wyckoff Phase C is ready to push throughout the Trading Range. So, in the Wyckoff Phase D, the price moves to the other edge of the Trading Range.


To make this, the price action marks some peaks that keep up the momentum in a direction. These are Points of Supply or Points of Demand in Wyckoff Phase D. The first of them offer the possibility to buy low or sell high inside the consolidation range.


When the price reaches the other edge, it is almost ready to go outside of the Trading Range.


The price can mark a High Pivot or a Low Pivot behind the Distal Line of the Edge reached. This can happen showing also an increase in the Trading Volume.


It is a Sign of Strength in a Demand Accumulation. In the same way, It is a Sign of Weakness in a Supply Distribution.


The price could not go outside the Trading Range with an immediate action. It begins a range of uncertainty between the Latest Point of Supply or Demand and the Low or High Pivot.


How to Earn Anticipating the Reversing of the Trend in Wyckoff Phase D.


Wyckoff Trading Method – Wyckoff Phase D – The Price rises to Supply Edge.


In the Wyckoff Phase B and Wyckoff Phase C, the Operators push the price to a Supply or Demand Edge. The purpose is to continue the previous trend. Of course, at least one of the Edges of the Trading Range is a Persistent Level.


Every new test of a Persistent Level pushes the price back in a new weaker swing. This marks a chain of Higher Lows so as a Chain of Lower Highs, inside the Trading Range.


In the Wyckoff Phase C, the Composite Man marks a Spring or an Upthrust after Distribution. The strong imbalance pushes the price back. This could break the Pivots Chain in the Trading Range moving the price to the Wyckoff Phase D.


The breaking of every Pivots Chain marks a new and fresh imbalance. In the Wyckoff Trading Method, this offers a first trading opportunity. The price retraces back to the broken Pivots Chain and converges to the new and fresh imbalance.


In this way, you can open a trade in the Trading Range anticipating the reversing of the trend. Indeed, you Buy low in the Demand Accumulation by the throwback. In the same way, you Sell high in the Supply Distribution.


In these cases, the risk per trade is the lowest that the Trading Range can offer.


This first peak keeps up the momentum to carry the price to the other edge of the Trading Range.


Running throughout the Trading Range, the price action will mark other entry points. This gives you the possibility to add more to your trade, before of the Wyckoff Phase E.


Setting your orders to trade anticipating the reversing of the trend, you understand the Power of the Wyckoff Trading Method.


Wyckoff Trading Method – Wyckoff Phase D – The price drops to Demand Edge.


Cause and Effect in Wyckoff Phase B and Wyckoff Phase E.


I already mentioned the Second Law of Wyckoff: The Law of Cause and Effect.


All the Trading Range of Consolidation is a process that Build, Develop and Increase a Cause. This will give an Effect at the end of Consolidation.


The Wyckoff Phase C gives important reference points for your trading. Instead, in the Wyckoff Phase D, you set your orders to trade anticipating the trend.


So, if you make the right analyze, the Effect in the Wyckoff Phase E gives you a large profit.


Building a Cause in Wyckoff Phase B.


Wyckoff Trading Method – Wyckoff Phase B – Accumulating Securities.


The Wyckoff Phase B shows some specific features:


The price tends to have a choppy behavior. The remaining Supply or Demand willing is still consistent to continue the trend. It can change the Preliminary Edges of the Trading Range. The Composite Man increases his exposure building a cause.


In the most of the cases, the Wyckoff Phase B is not good for trading, because the chart is choppy. You see the securities accumulation so as the securities distribution. This is visible by the floating of the chart.


The large interests have a Specific Goal:


In a Supply Distribution, it is to exhaust as much as possible the remaining demand willing. In a Demand Accumulation, it is to take as much as possible of the remaining supply willing.


They accumulate or distribute as much they can and this can take a long time. Indeed, the Wyckoff Phase B is the longest phase in the Wyckoff Trading Method. They do this preparing and anticipating the markup or the markdown.


The price behavior can mark high pivots so as low pivots. Indeed, the Wyckoff Trading Method considers Upthrusts and the Secondary Imbalances. Some of them happen behind the distal line of the Preliminary Edges. They are Signals of Strength so as Signals of Weakness. So, they mark a new Supply edge so as a new Demand edge of the Trading Range.


What you see is that the price action marks and tests demand and supply levels. Besides, in a Trend Rotation, you see an edge of the Trading Range that becomes a Persistent Level.


Wyckoff Phase B – Distributing Securities.


Getting the Effect in Wyckoff Phase E.


Wyckoff Trading Method – Wyckoff Phase E – The Markup.


The Trading Range of Consolidation finishes with the Wyckoff Phase E. It is the Effect of accumulation or distribution in the Trading Range.


In Wyckoff Trading Method, Signs of Strength so as Signs of Weakness in Wyckoff Phase D, are the last step.


They show the Block Houses that accumulate or distribute more securities. This happens before to leave behind the Trading Range of Consolidation.


The rising or the drop makes clear the new trend by a Markup or a Markdown.


So, the Trading Range becomes a Demand Accumulation or a Supply Distribution. The Demand willing prevails and then the price rises in a Markup. So as the Supply willing prevails and then the price drops in a Markdown.


Any new trend is not linear, the price rises or drop marking steps.


Every step exists because a new imbalance keeps up the trend momentum.


So, new Block Trades take or release more Securities on the way to reach the next trend rotation.


You understand that any relevant price correction could be an opportunity to trade, accepting the risk. This means that you set an order to follow the trend. The reason is that any price correction marks a new Supply or Demand Level.


The price can even show an acceleration in its progression. Then, the price goes far away from the trend by a relevant momentum. In this case, the bounce back would be an Automatic Reaction to begin a new Consolidation.


The bounce back can happen in 2 ways:


By a convergence to a Supply or Demand Level in opposition. Marking a new imbalance before to reach a visible old and strong level.


So, the new Automatic Reaction shows the Wyckoff Phase A for a new Trading Range of Consolidation.


Wyckoff Trading Method – Wyckoff Phase E – The Markdown.


Conclusion.


Wyckoff Trading Method – Wyckoff Estate.


Richard Wyckoff has become so rich, to live in an estate with 9 and a half acres in long island. Becoming richer, Richard Demille Wyckoff turned his focus on Education, Teaching, and Publishing.


The Price Action is everything and the Wyckoff Trading Method shows all you need for trading. You see how your perception of trading changes when you see all the peculiarities.


The Three Wyckoff Laws are an inestimable resource for your trading:


What they show you is how the market move, what is the cause and how to measure the Effect.


The Wyckoff Trading Method, since the beginning of XX century, gives an enormous help. It shows to you where and how to take your trade, anticipating the new trend. Then earning.


I explain to the Profiting. Me students the importance to understand the Rotation Frameworks.


The most common Rotation Frameworks are the Parabolic Rotation and the Head Shoulders. The Trading Range of Consolidation includes and absorbs any Trading Rotation Framework.


The Rotation Frameworks at the beginning and at the ending of the Consolidation are the easiest to trade. They give the lowest risk and the most profitable opportunities. In an easy Trading Scenario, you get the Parabolic Rotation Framework in Wyckoff Phase A. Instead, you can get a Head Shoulders Framework when the price moves from Wyckoff Phase C to Wyckoff Phase D.


The Wyckoff Trading Method clarifies the Price Action in the best way. It opens your eyes to all those peculiarities that you must know to earn large profits.


So, let me ask you a question:


What are your experiences about trading the reversing of the trend?


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PRESENTING: The Secret Trading Strategy From The 1930s That Hedge Funders Don't Want You To Know About.


In the wheat pit of the Board of Trade of the city of Chicago, 1920. Library Of Congress.


" The large operator does not, as a rule, go into a campaign unless he sees in prospect a movement of from 10 to 50 points. Livermore once told me he never touched anything unless there were at least 10 points in it according to his calculations."


So writes Richard Wyckoff, the legendary trader who in the 1930s wrote a manifesto that gained him a cult following on Wall Street.


His 1931 book, "The Richard D. Wyckoff Method of Trading and Investing in Stocks – A Course of Instruction in Stock Market Science and Technique," is out of print and somewhat difficult to find these days (not impossible), but even in 2018, hedge fund managers still swear by it.


One of the key takeaways from the book is that if you want to succeed, you have to learn to recognize the professionals and understand what they are doing. That's what those who follow Wyckoff do — they watch the large operators.


Wyckoff walks us through the process of how a large operator will manipulate a stock up or down — so that next time one sees it unfolding on the screen before his or her own eyes, he or she can react accordingly.


This, you could say, is real technical analysis .


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6 Secret Tips For Supply And Demand Forex Trading.


6 Secret Tips For Supply And Demand Forex Trading.


Whether we look at strong price turning points, trends or support and resistance areas, the concept of supply and demand is always at the core of it. It can really pay off it you know our 6 tips for supply and demand forex trading.


A strong uptrend can only exist if buyers outnumber sellers – that’s obvious, right?! 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 accumulation or a demand zone.


Bearish trends are created when sellers outnumber buy orders. Then, price falls until a new balance is created and buyers become interested again. The origin of a bearish trend wave is called a distribution or a supply zone.


Supply and demand drives all price discoveries, from local flea markets to international capital markets. When a lot of people want to buy a certain item with limited quantity, price will go up until the buying interest matches the items available. On the other hand, if no one wants to buy a certain item, the seller has to lower the price until the buyer becomes interested or otherwise there won’t be a transaction.


The 6 tips for supply and demand Forex trading.


Wyckoff’s “accumulation and distribution” theory describes how trends are created. Before a trend starts, price stays in an “accumulation” zone until the “big players” have accumulated their positions and then drive price higher. They can’t just swamp the market with their full orders because it would lead to an immediate rally and they weren’t able to get a complete fill, thus reducing their profits.


A short accumulation zone before a strong breakout can point to unfilled buy interest.


It is reasonably safe to assume that after price leaves an accumulation zone, not all buyers got a fill and open interest still exists at that level. Supply and demand Forex traders can use this knowledge to identify high probability price reaction zones. Here are the six components of a good supply zone:


1) Moderate volatility.


A supply zone typically shows narrow price behavior. Lots of candle wicks and strong back and forth often cancel a supply zone for future trades.


The narrower a supply/demand zone before a strong breakout is, the better the chances for a good reaction the next time typically.


2) Timely exit.


You don’t want to see price spending too much time at a supply zone. Although position accumulation does take some time, long ranges usually don’t show institutional buying. Good supply zones are somewhat narrow and do not hold too long. A shorter accumulation zone works better for finding re-entries during pullbacks that are aimed at picking up open interest.


Good supply zones are somewhat narrow and do not hold too long. A shorter accumulation zone works better for finding re-entries during pullbacks that are aimed at picking up open interest.


Narrow and short accumulation zones, followed by a strong breakout, are more meaningful.


3) The “Spring”


The “Spring” pattern is a term coined by Wyckoff and it describes a price movement into the opposite direction of the following breakout. The spring looks like a false breakout after the fact, but when it happens it traps traders into taking trades into the wrong direction ( read more: Bull and bear traps ). Institutional traders use the spring to load up on buy orders and then drive the price higher.


The “Spring” is a pattern used by professionals to acquire larger positions – buying from amateurs.


4) Strong force leaving the zone.


This point is important. At one point, price leaves the supply zone and starts trending. A strong imbalance between buyers and sellers leads to strong and explosive price movements. As a rule of thumb, remember that the stronger the breakout, the better the demand zone and the more open interest will usually still exist – especially when the time spent at the accumulation was relatively short.


When price goes from selling off to a strong bullish trend, there had to be a significant amount of buy interest entering the market, absorbing all sell orders AND then driving price higher – and vice versa. Always look for extremely strong turning points; they are often high probability price levels.


Strong turning points can offer great re-entry opportunities.


5) Freshness.


If you trade of supply areas, always make sure the zone is still “fresh” which means that after the initial creation of the zone, price has not come back to it yet. Each time price revisits a supply zone, more and more previously unfilled orders are filled and the level is weakened continuously. This is also true for support and resistance trading where levels get weaker with each following bounce.


6) Amateur squeeze.


The Rally-Range-Drop scenario describes a market top (or swing high), followed by a sell-off. The market top signals a level where the sell interest got so great that it immediately absorbed all buy interest and even pushed price lower.


The amateur squeeze allows good and patient traders to exploit the misunderstanding how market behavior of consistently losing traders. It is reasonably safe to assume that above a strong market top and below a market bottom, you’ll still find big clusters of orders; traders who specialize in fake breakouts know this phenomenon well.


Typically, price will go beyond the initial zone to squeeze amateurs and triggers stops and pick up more orders.


How to use the concept of supply and demand?


Most trading concepts sound great in theory, but only if you can actually apply them, it’s worth investing your time and effort to master them. The concept of supply, demand and open interest can be used in 3 different ways:


1 – Reversal trading.


We at Tradeciety specialize in reversal trading (here is our Forex price action course ) and that’s also the best use for supply and demand zones. After identifying a strong previous market turn, wait for price to come back to that area. If a false breakout occurs, the odds for seeing a successful reversal are extremely high.


To create even higher probability trades, combine the fake breakouts with a momentum divergence and a fake spike through the Bollinger Bands.


2 – Support and resistance.


Supply and demand zones are natural support and resistance levels and it pays off to have them on your charts for numerous reasons. Combining traditional support and resistance concepts with supply and demand can help traders understand price movements in a much clearer way. You’ll often find supply and demand zones just below/above support and resistance levels. And while the support and resistance trader is being squeezed out of his trade, the supply and demand traders know better.


3 – Stop Loss and Take Profit.


When it comes to profit placement, supply and demand zones can be a great tool as well. Always place your profit target ahead of a zone so that you don’t risk giving back all your profits when the open interest in that zone is filled. For stops, you want to set your order outside the zones to avoid premature stop runs and squeezes.


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