CNXMetalThis is a bearish pattern
After the Upthrust After Distribution (UTAD) in Phase D, price failed to hold support and is now accelerating downward.
Phase E of Wyckoff Distribution #2 — the markdown phase. Classic Phase E behavior — the public is selling into weakness while smart money has already exited. This is where the distribution is complete, and price moves lower as large operators have exited their positions.
The failure to recover previous support levels reinforces bearish momentum.
Watch for potential bearish continuation patterns
I had posted the sample wykcoff distribution chart for reference inside the chart.
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
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
GOLD ShortSetup Contains:
- Wyckoff Distribution
What is Wyckoff distribution?
The distribution is sideways and has a range-bound trading period. It usually occurs after a prolonged uptrend. This is the trading zone where big players build short positions or distribute long positions and wash out retail traders.
FOLLOW PAFX & LEARN AND EARN 💸
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.
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.
Gold may show 1750's level again.looking at the current price action of gold, it may show 1756-1760 level in the next couple of weeks . for the entry I have taken supply zone from a 30-minute timeframe. will be looking for a break of structure or Wykoff to occur in that zone (marked with a rectangle) in the lower time frame . Let's take GOLD to the FLOOR....;).
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.
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