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DXY - 4H ANALYSIS What is Wyckoff Distribution Cycle? An accumulation cycle is typically followed by what is known as Wyckoff Distribution. Wyckoff Distribution Schematic - After the dominant traders have increased their position during the Wyckoff Accumulation cycle, they will sell off their positions when the asset’s price is high. The Wyckoff Distribution cycle will happen across five phases. 1. Preliminary Supply (PSY) - This phase typically occurs after a prominent price rise. Dominant traders will sell off large portions of their positions resulting in an increase in the trading volume. 2. Buying Climax (BC) - The increased supply causes retail traders to begin taking up positions. This demand causes the price to continue rising. Dominant traders can sell off th eir positions at a premium price. However, this phase relies on high demand from retail traders so that the selling off by dominant traders does not bring down the asset’s price. 3. Automatic Reaction (AR) - The end of the BC phase is marked by a price drop. This happens as fewer traders are buying up positions even though there is still a large supply available. The increased number of sell orders or supply causes the price to drop. It will eventually reach the AR level which is the lower price boundary of the Wyckoff Distribution Cycle. 4. Secondary Test (ST) - In this phase, the price rises back to the BC range. This is where traders are testing the balance of supply and demand. The top price of this test occurs when there is more supply than demand. As the price reaches the BC price range, less trading will occur. 5. Sign of Weakness, Last Point of Supply, Upthrust After Distribution (SOW, LPSY, UTAD) - The SOW occurs when the asset’s price falls near or below the initial boundaries of the respective Wyckoff Distribution Cycle. This occurs when there is more supply than demand and signals price weakness. Following the SOW is the LPSY. In this phase, traders are testing the support of the asset’s price at these lower levels. There may be a small rally, but any rallies will be difficult as the result of either too much supply or too little demand. The last possible phase is the UTAD, which is just what it sounds like. This phase of the Wyckoff Distribution Cycle is not guaranteed to occur, but if it does, it will typically occur near the end of the overall cycle. The asset’s price will increase as a result of increased demand and push the upper price boundary of the entire cycle. Conclusion - The Wyckoff Market cycle is hotly debated in crypto circles. Some claim that the signs involved in a Wyckoff Accumulation can be seen in the market changes for certain crypto assets, and others disagree. Regardless, understanding the potential causes occurring in the market is helpful. Learning about methodologies that other traders use can prepare you for making your own trading decisions
CAPITALCOM:DXYShort
by PAFXLTD
4
BTC REDISTRIBUTION JULY 2021! Redistribution begins with volatility and ends with volatility. Typically a Selling Climax initiates the Redistribution process. The Redistribution process looks eerily similar to Distribution. A review of the process of Distribution could prove helpful (to study the Distribution process and schematics click here). On the ARMH case study; cover up everything to the left of the Selling Climax (SCLX) and compare to the schematics and prior Distribution examples. Note the family resemblance. The blue labeling of the SCLX, AR and ST are there to illustrate the similarities to the start of Accumulation. This is classic ‘stopping action’. The red labeling illustrates Distribution and Redistribution attributes. Note that once the stopping action is in place (primarily short covering) the footprints of Redistribution become evident. The attempt to support ARMH takes place at the ICE. Note the series of lower price lows. This is a sign of inherent weakness and is labeled as SOW (Sign of Weakness). Once the ICE is broken there is no longer enough demand left to rally back into the prior trading range. ARMH is very vulnerable to a rapid markdown when below the ICE. After the Climactic action at the Upthrust (UT) the volatility and price weakness become dominant. The rallies are weak, short in duration, and lack sponsorship from the C.O. We will spend more time on the tricky business of Redistributions. credits to.... About the author: Bruce Fraser, an industry-leading "Wyckoffian," began teaching graduate-level courses at Golden Gate University (GGU) in 1987. Working closely with the late Dr. Henry (“Hank”) Pruden, he developed curriculum for and taught many courses in GGU’s Technical Market Analysis Graduate Certificate Program, including Technical Analysis of Securities, Strategy and Implementation, Business Cycle Analysis and the Wyckoff Method.
Short
by cryptocult-OMC
2
ELECTCAST LONGLets analyse a stock with wyckoffian 3rd law ..... ..........Volume is the EFFORT and Spread (Price) is the RESULT ............. someone just looking at only price and ignoring ........VOLUME ............ HALF the data thats available for analysis Wyckoffian 3rd Law also gives importance to HARMONY ( small spread and small volume) .................. ANAMOLY ( small spread with large volume or large spread with small volume ) ...... both are important when we analyse the chart and activity of the COMPOSITE MAN candle 1 and 5 is harmony and candle 2,3 ,4 are ANAMOLY candle 1 ... large volume high range candle with breakout , candle 2 was low range but high volume ....... price had a pause for few days ... , candle 3 high range and low volume candle ... manipulation by composite man to shake out weak hands candle 4 ..... high range candle with low volume ....candle 5 ..... again the smart money checking the easy of movement and could get a high range candle with less volume(Less EFFORT ) compared to the breakout volume ....... stock is ready to be marked up once we understand this Target 1 reached .. calculated by fibonacci extension tool target 2 can also be calculated
NSE:ELECTCAST
by NareshBiyani99
Is Bitcoin ready for a Stepping stone reaccumualtion?Disclaimer... not an investing/trading recommendation This is not a time oriented analysis, although last 2 times whales took 5 to 7 days to reaccumualte the pathway of price action as mentioned is not a projection based on TA, rather, a mimic of the textbook wyckoff reaccumualtion schematics... the markup target can only be calculated accurately , on completio of the Last point of support in Phase D of wyckoff schematics for now, the 9.9k target has been mentioned on the basis if old point and figure analysis which is linked here in this chart BITFINEX:BTCUSD COINBASE:BTCUSD BITSTAMP:BTCUSD
BITFINEX:BTCUSDLong
by capsule91
4