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IOC| Wyckoff Events and Phases explained 🎯

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NSE:IOC   INDIAN OIL CORP
Wyckoff developed a price action market theory which is still a leading principle in today's trading practice.
The Wyckoff method states that the price cycle of a traded instrument consists of 4 stages – Accumulation, Markup, Distribution, and MarkDown.


👉TEXTBOOK EXAMPLE Accumulation Schematic: Wyckoff Events and Phases👈


And this is the accumulation stage -

1) PS— Preliminary Support, where substantial buying begins to provide pronounced support after a continued down-move.
- Volume increases and price spread widens, signaling that the down-move may be approaching its end.

2) SC—Selling Climax, the point at which widening spread and selling pressure usually in high point and heavy or panicky selling by the public is being absorbed by larger professional interests at or near a bottom.
- Often price will close well off the low in an SC , reflecting the buying by these large interests.

3) AR—Automatic Rally, which occurs because intense selling pressure has greatly decline.
- A wave of buying easily pushes prices up.
- The high of this rally will help define the upper boundary of an accumulation.

4) ST—Secondary Test, in which price revisits the area of the SC to test the supply/demand.
- If a bottom is to be confirmed, volume and price spread should be decline as the market approaches support in the area of the SC .
- It is common to have multiple STs after an SC .

5) SOS—Sign Of Strength, a price advance on increasing spread and relatively higher volume .

6) LPS—Last Point Of Support, the low point of a reaction or pullback after an SOS.

7) BU/LPS- Backing up to an LPS means a pullback to support that was formerly resistant, on diminished spread and volume .


All the phases of accumulation stage-


Phase A:
Phase A marks the stopping of the prior downtrend.
-- Up to this point, supply has been dominant.
-- The approaching cutback of supply is evidenced in preliminary support (PS) and a selling climax ( SC ).
-- A successful secondary test (ST) in the area of the SC will show less selling than previously and a narrowing of spread and decreased volume , generally stopping at or above the same price level as the SC .
-- If the ST goes lower than that of the SC , one can anticipate either new lows or prolonged consolidation.
-- Horizontal lines may be drawn to help focus attention on market behavior, as seen in the two Accumulation Schematics above.



Phase B:
-- Phase B serves the function of “building a cause” for a new uptrend
-- In Phase B, institutions and large professional interests are accumulating relatively low-priced inventory in anticipation of the next markup.
--There are usually multiple STs during Phase B'
-- Institutional buying and selling impart the characteristic up-and-down price action of the trading range.
--Early on in Phase B, the price swings tend to be wide and accompanied by high volume .



Phase C:
-- It is in Phase C that the stock price goes through a final test of the remaining supply.
-- this marks the beginning of a new uptrend, trapping the late sellers (bears).
-- It indicates that the stock is likely to be ready to move up, so this is a good time to initiate at least a partial long position.
-- The appearance of an SOS shortly after a spring or shakeout validates the analysis.


Phase D:
--During Phase D, the price will move at least to the top
--LPSs in this phase are generally excellent places to initiate or add to profitable long positions.


Phase E:
--large operators can occur at any point in Phase E.
--These are sometimes called “stepping stones” on the way to even higher price targets.

👉PRICE ACTION BASED ANALYSIS 👈

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Comment:
Comment: The above stock is published by one of the traders in the community says that how wyckoff theories works quite well

Comments

Good review of the Wyckoff methodology. Simple clear chart, with great explanation.

This publication has been chosen for the Editor's Picks and will be featured on https://in.tradingview.com/ideas/editors-picks/

Thank you for your valuable contribution to the TradingView community and keep up the good work!
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+7 Reply
TradeTheTip AngusMcK
@AngusMcK, thank you very much for selecting the idea in editor picks...i will try to post more different educational content in trading view
+5 Reply
northguleria TradeTheTip
@TradeTheTip,
Awesome work brother ....some detailed explanation on RS line ...how to Plot ..how to interpret and how to use for positional / swing trading ...would be great !!
+2 Reply
rimsonlobo AngusMcK
@AngusMcK, YOU CAN WATCH MY RESEARCH TOO ONN WYCKOFF
Reply
Great :-)
100 coins
+1 Reply
Sir, Thanks for Sharing. Really good learning. Had one question - Can this be executed on other time frames too - 4 Hours, 1 Hour, etc. ?
+5 Reply
TradeTheTip TheTradingChannel012
@TheTradingChannel012, thanks ......of course we can find it in other TF as well but as you know big investor play on higher TF & its takes time to accumulate the share sometimes it takes several months live example IOC ....so its better to go with daily and weekly TF
+1 Reply
what do i say.....😍😍😍in malayalam "adipoli aayittind ttaa"😜😁

anyway understanding......
+2 Reply
TradeTheTip ANKITHSHAJU
@ANKITHSHAJU, thanks for the unique comment 😊
Reply
ANKITHSHAJU TradeTheTip
@TradeTheTip, he he heee
Reply
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