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Wyckoffdistribution

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
Tata Power - Possible distribution scenarioTata Power is printing almost a textbook example of Wyckoff distribution. I have attached the distribution schematic for reference. The range low would act as the last point of supply and the price should get rejected from it. Over the next few months, it may head towards the 150 level. Disclaimer : This is NOT investment advice. This post is meant for learning purposes only. Invest your capital at your own risk. Happy learning. Cheers! Rajat Kumar Singh (@johntradingwick) Community Manager (India), TradingView
NSE:TATAPOWER
by johntradingwick
18
BTC IMMINENT CRASH! 70K TOP / FINDING ITS SUPPORT @ 52K TO 50KNO ONE CAN GO PARABOLIC, NEITHER ELON MUSK NOR BITCOIN BIG DADDY CAN GO UP WITHOUT HAVING A STRONG LEG DOWN - PERIOD. BTC GONNA CRASH @ 70K / SUPPORT @ 21W EMA / 50K TO 52K / SHORT @ 70k REASONS / INDIAN ELITE BTC SNIPER v4.0 / IN MY HUMBLE OPINION 1. BULLISH TREND - RISING WEDGE PATTERN indicating TREND REVERSAL in the mid term (as the same MAY 2021 Crash) 2. HEAD AND SHOULDERS PATTERN - formation of head and shoulders pattern 3. WYCKOFF DISTRIBUTION PATTERN / As the same Feb 21 - May 21 4. ABC correction wave Imminent / finding its support @ golden 0.618 fib around 50k -52k 5. 21 Week EMA @ 51530 at the time of publishing. 6. LONG @ 50 - 52K TILL 135K, THEN EXIT THE MARKET PROS OF BTC CRASH 1. HEALTHY CRASH FLUSHING OUT OVER LEVERAGED PLAYERS (>3X) 2. EXTREMELY BULLISH , AS SOON AS THE CRASH HAPPENS, CONSOLIDATION FOR 15 TO 25 DAYS ( JAN 2022), THEN BTC GONNA GO PARABOLIC TO 135K, FINISHING THE CYCLE AROUND 150 K @ MAR 15/22. 3. THIS MARKET CYCLE ISN'T OVER WITHOUT BTC CROSSING 100K -PERIOD. 4. THANKS TO BENJAMIN COWEN @ CRYTPOVERSE FOR HELPING ME GAIN SO MUCH KNOWLEDGE. THANK THE GOD / ALL GLORY GOES TO HIM. THANK YOU.
Short
by vign1995
Wyckoff distribution - Bitcoin Target: 37500$It seems like the Wyckoff distribution is playing out again in Bitcoin charts. There is a confluence between the Wyckoff distribution and descending triangle pattern which gives a target of ~37500$ price within a week after which a trend reversal can be expected. The first Wyckoff distribution happened between the start of this year and ~20th July and Line1 denotes the Support for that distribution The one playing out currently started a week after the first one got over and is a smaller one as compared to the first one with Line2 as support.
BITSTAMP:BTCUSDShort
by YashLadia
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
Richard Wyckoff distribution bull trap 1.green box appears to signal the resumption of the uptrend but in reality is intended to TRAP uninformed break-out traders the remaining demand. 2. in phase C price goes through a decisive test of the remaining supply, allowing the “smart money” operators to ascertain whether the stock is ready to be marked down. >>if these points hold true we can take advantage with good risk/reward, we can draw a pitchfork using expanding pivots (sign of reversal) in green box. $$ valid entry could be at upper parallel of pitchfork with stop above green box and target of lower parallel (white box) >> i sold 1100 call option you can also buy a put of 1100
NSE:TECHMShort
by bossdaddy
2
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