Get started

Wyckoff

Wyckoff Distribution Scheme - Catch early - Beat the Operators!A classic example of Wyckoff Distribution catching retail investors off guard in Olectra Greentech Limited over a couple of years. It is important to analyze the same chart through different time-frames. New patterns can emerge this way! Full Text Reference, highly recommended must-read - school.stockcharts.com PSY—preliminary supply, where large interests begin to unload shares in quantity after a pronounced up-move. Volume expands and price spread widens, signaling that a change in trend may be approaching. BC—buying climax, during which there are often marked increases in volume and price spread. The force of buying reaches a climax, with heavy or urgent buying by the public being filled by professional interests at prices near a top. A BC often coincides with a great earnings report or other good news, since the large operators require huge demand from the public to sell their shares without depressing the stock price. AR—automatic reaction. With intense buying substantially diminished after the BC and heavy supply continuing, an AR takes place. The low of this selloff helps define the lower boundary of the distribution TR. ST—secondary test, in which price revisits the area of the BC to test the demand/supply balance at these price levels. For a top to be confirmed, supply must outweigh demand; volume and spread should thus decrease as price approaches the resistance area of the BC. An ST may take the form of an upthrust (UT), in which price moves above the resistance represented by the BC and possibly other STs before quickly reversing to close below resistance. After a UT, price often tests the lower boundary of the TR. SOW—sign of weakness, observable as a down-move to (or slightly past) the lower boundary of the TR, usually occurring on increased spread and volume. The AR and the initial SOW(s) indicate a change of character in the price action of the stock: supply is now dominant. LPSY—last point of supply. After testing support on a SOW, a feeble rally on narrow spread shows that the market is having considerable difficulty advancing. This inability to rally may be due to weak demand, substantial supply or both. LPSYs represent exhaustion of demand and the last waves of large operators’ distribution before markdown begins in earnest. UTAD—upthrust after distribution. A UTAD is the distributional counterpart to the spring and terminal shakeout in the accumulation TR. It occurs in the latter stages of the TR and provides a definitive test of new demand after a breakout above TR resistance. Analogous to springs and shakeouts, a UTAD is not a required structural element: the TR in Distribution Schematic #1 contains a UTAD, while the TR in Distribution Schematic #2 does not.
NSE:OLECTRAEducation
by Wolf-AD7
2
WYCKOFF CYCLE IN BTCUSDTBTC is about to end it's phase D, and begin its mark up rally. Expecting the price to go till 49K within the end of this month. To those who arent familiar with wyckoff cycle. Note how price reacted at the 34529 price level. When it broke the level, it came back in strongly with good volumes. Going with the basic economics, It tells how increased supply didnt affect the price and how quickly it came back to the level, showing sign of strength. Abbreviations used: PS -preliminary Support SC - Selling climax AR - Automatic rally ST - Secondary tests Spring - Quick fall back to the structure after the break down, reflecting demand.
Long
by theAjayKumar
Wyckoff's Schematics - Distribution PhasePresenting Wyckoff's Schematics - Distribution Phase We here try to demonstrate the distribution phase in Yes Bank. We had to keep the material short cover all phases of distribution as well. Disclaimer: All investments and trading in the stock market involve risk. Any decisions to place trades in the financial markets, including trading in stock or options or other financial instruments is a personal decision that should only be made after thorough research, including a personal risk and financial assessment and the engagement of professional assistance to the extent you believe necessary. The trading strategies or related information mentioned in this article is for informational / educational purposes only.
NSE:YESBANKEducation
by Market-Thalaivaa
4
Gujarat Alkalies - Weekly BreakoutGujarat Alkalies has shown a strong weekly breakout from accumulation phase. We would wait for a pull back to the channel to take an entry - around 380 levels. Details mentioned in the chart. Disclaimer: All investments and trading in the stock market involve risk. Any decisions to place trades in the financial markets, including trading in stock or options or other financial instruments is a personal decision that should only be made after thorough research, including a personal risk and financial assessment and the engagement of professional assistance to the extent you believe necessary. The trading strategies or related information mentioned in this article is for informational / educational purposes only.
NSE:GUJALKALILong
by Market-Thalaivaa
9
Amara Raja Batteries Limited - Long Term Investment and SIP viewAmara Raja Batteries - The share is in a huge accumulation phase - Note the volume as time progresses in the rectangle - A gradual SIP in the stock - buying 'N' shares every month can prove to be a good investment theme as EVs have started evolving - EV Battery business is estimated to reach $300 Billion by 2030 - Even if current market share is maintained, revenue will grow 10x in next 10 years - A breakout from the rectangle is where bulk buying can be done for steep price movements - View holds good till rectangle is not broken on downside - This study is on a monthly chart, and only meant for really long term investors. Ignore if you lack patience. Disclaimer - Views only for educational and informational purposes and does not consist of any trading advise. Assess your own risk before investing in financial instruments.
ALong
by Market-Thalaivaa
MARUTI SUZUKI| Wyckoff Events and Phases explained 🎯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 .
NSE:MARUTIEducation
by rimsonlobo