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Wyckoffmethod

LODHA Trade Analysis for Buy using Wyckoff methodWyckoff Story Prior to trading range we were in uptrend and then we have Stoping action and CHoCH (Change of character). Let’s assume our bias is accumulation based on CHoCH as we don’t see lot of supply in the CHoCH. Down wave Analysis We can see that the volatility of the down wave is decreasing from Phase A to Phase D, confirming the accumulation Bias. Volume Analysis We have supply decrease from Phase A to Phase C indicating supply is being absorbed. Sign of Strength we have Major sign of strength in phase D with good demand volume indicating institutions are present in buying. The Backing Up Action (BAU) has less supply indicating sellers are absent. Final View Bullish on stock
NSE:LODHALong
by ksujit08
COALINDIA Trade Analysis for Buy using Wyckoff method.Wyckoff Story Prior to trading range we were in uptrend and then we have Stoping action and CHoCH (Change of character). Let’s assume our bias is accumulation based on CHoCH as we don’t see lot of supply in the CHoCH. Down wave Analysis We can see that the volatility of the down wave is decreasing from Phase A to Phase D, confirming the accumulation Bias. Volume Analysis In Phase B we see increase in supply but the price is not able to go below the trading range, lot of effort to push the price down but fails, indicating effort vs result is not synced. Confirming the accumulation bias. We have supply decrease from Phase A to Phase C indicating supply is being absorbed. Sign of Strength we have Major sign of strength in phase D with good demand volume indicating institutions are present in buying. Final View Bullish on stock with entry marked on the chart
NSE:COALINDIALong
by ksujit08
LATENTVIEW - THE ART OF WYCKOFF ACCUMULATIONLATENTVIEW is being accumulated by institutions, I have already explained the Wyckoff Accumulation in my previous posts. You can refer my 63MOONS post to study in detail. I have initiated my position @ 383. MY stoploss is 340 *DISCLAIMER* This analysis is only for educational purpose. I am not a SEBI Registered Analyst/Advisor. Please consult your financial advisor before taking any position and please use a Stop Loss for any Investments/Trading Positions. It is your hard earned money so give risk management your highest attention. Do take this disclaimer seriously.
NSE:LATENTVIEWLong
by nishant_bhatt
VARROC ENGINEERING WYCKOFF ACCUMULATIONVarroc Engineering is focused on designing, manufacturing and supplying exterior lighting systems, plastic and polymer components, and electrical and electronics components Market Cap : 5000cr Market Cap set your positions accordingly Sector : Auto Ancillary VARROC ENGINEERING is in a 4 month trading range, the analysis done above is through Wyckoff method and we get what looks like a accumulation TR (trading range). PHASE A : The TR got established from 15th September where it did the highest volume since it's IPO in 2018. Labelled the PSY , SC , AR as Upthrust Action followed by a low spread Secondary Test on good volume leaving a wick and closing in green shows hints at some absorption happening that marks the PHASE A and CHoCH ( Change of Character ) the bias for the TR at this point is bullish. PHASE B : Secondary Test on 21st October with huge volume but closed below the AR 319.80 level which shows rejection, at this point we can conclude the price is not ready for the markup phase and still needs to spend some time in TR followed by the price falling off with low volumes and low spread indicating no further new selling but also fall in demand till 16th Nov where the price went below the ST in PHASE A but on low volumes then buying demand came and closed above previous 4 Days close with fair volume and good spread. PHASE C : The hardest part is identifying PHASE C but it is the only thing matters followed by PHASE D in Wyckoff Method. 16th - 17th Nov the stock had good volumes and good spread indicating SOS rally but failed to closed above AR levels , also the following week/month Nifty ( Comparative Index/ Market Proxy ) had faced Volatility on the down side and 29th Nov being the biggest fall in Nifty since 2 quarters but the underlying stock didn't broke the ST(PHASE B) levels. This shows positive jump in Relative Strength and the start of it. On 7th Dec the candle showed some demand and followed buying crossing above the AR, ST(PHASE B) levels giving couple of closes above the TR so we mark the low on 6th Dec as LPS (Last point of Support) and Conclude Phase C. Though we missed our First of Four entry points but given the Volatile Market conditions it was hard to Initiate. PHASE D : PHASE D in the Wyckoff Method indicates a SOS ( Sign of Strength) TR above the previous TR , BU ( Backing Up Action) and LPS/ Multiple LPS. In this stock's case after the SOS rally the volumes cooled off with slide in price we mark the last swing ended as ST=UT because it wasn't a SOS because the price failed to sustain above the TR and came back in the TR , the market proxy faced huge volatility and made a new low from it's previous levels with big spreads but the underlying stock didn't made a new low thus forming a Higher High - Higher low formation showing relative strength even though it closed -9% and the price is now rising with lower spread and volumes, thus we mark the low as LPS. We make a uptrend channel by connecting two lows and the high. Conclusion : Scenario # 1 : The stock still seems to be in PHASE D also trying to cross above 200 Dema and 100 Dema if it shows SOS above 336 we can expect PHASE E (Markup PHASE), CHoCH and we can start a bull campaign and further add positions with trailing stoploss on LPS/Channel/DEMA. Scenario # 2 : If the price breaks Channel we can expect that the stock needs to spend more time in TR. Scenario # 3 : If the price also breaks LPS then the TR can be extended way further or can be concluded as a Distribution PHASE .
NSE:VARROCLong
by nukacola933
Volume price analysis & Volume Divergence Cheat sheetWhat makes volume price analysis so crucial? Volume and price analysis play a major role in trading and investing. Volume analysis helps traders and investors identify whether there is significant interest in a particular security. It also helps to identify potential buying and selling pressure, which can be useful in predicting future price movements. Price analysis helps to identify trends and price patterns, which can be useful in making trading and investing decisions. Volume and price analysis are important tools that can be used to spot trading opportunities and make sound decisions. 2 important things to keep in mind when analysing volume: 1. An increase in volume shows that market players are eager to participate in the developing market activity and want to see the price move higher in an uptrend or lower in a downtrend and are willing to buy higher in an uptrend or sell lower in a downtrend. 2. A drop in volume shows that traders are less interested in seeing prices rise in an uptrend or fall in a downtrend and are more eager to purchase lower in an upswing and sell higher in a downtrend. Volume Divergence: It is essential to check whether price and volume patterns are similar when comparing them. In that case, there is a good chance that the trend will continue. A volume divergence occurs when price and volume diverge, which indicates that the underlying trend may not be as strong. According to my observations, whenever a stock is trading at a high volume, it seems to strongly trend either upward or downward. Here are some important concepts in volume price analysis: 1.When the price of a stock rises with increased volume, it indicates that the bull trend is stronger and buyers are interested, and this is a trend continuation signal. 2. If the stock price rises but volume decreases, it indicates that the bull trend is weakening and may reverse, and buyers are not interested. Price and volume divergence suggest a trend reversal. 3. If the price is falling while the volume is increasing, it indicates that the bearish trend is quite strong and sellers are active. 4. if the price is falling and the volume is decreasing, it indicates that the bearish trend is weakening and will soon reverse, signifying divergence between price and volume and a trend reversal.
NSE:ELGIEQUIPEducation
by AfnanTAjuddin
12
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
Wyckoff distribution of Deepak Nitrate This scrip is highly overvalued, and fair value is around 888 (personal view after deliberating fundamentals). Currently, Wyckoff distribution is playing out, and further downside is expected. Fundamentally, scrip is strong, but it is highly overvalued due to excess liquidity. With each interest rate hikes, the fair value, which is 55% of the highs of pre-covid level may become available with squeez in liquidity. At 1850 it is appx 225% of the pre-covid highs, insanely high! Technically, it is under-pressure, and further pain can be expected in distributive manner, until a fair value is achieved. For further information, look at the chart. It is self-explanatory! Disclaimer: For educational purpose. Consult your financial advisor before investing.
NSE:DEEPAKNTRShort
by UnknownUnicorn24887800
5
GOLD - 1H BUY PROJECTION Accumulation Phase Selling Climax (SC) - Selling Climax is a pattern in Accumulation phase characterized by a sharp selloff. It takes place before the Preliminary Support or PS. It indicates that selling pressure has reached a stage in which panic selling by the public will be absorbed by Big Institutional players or Smart money traders. Automatic Rally (AR) - An automatic Rally is an up move that forms after the Selling Climax in the Accumulation phase. The underlying buying interest causes the prices to rally higher, but quickly prices will fall back after making a new high. The highest point of this rally will become the Resistance of the Accumulation range. You can see the example of Automatic Rally or AR in the Image. Secondary Test (ST) - The Secondary Test formation happens after an Automatic Rally. It’s caused by the long covering process of Public Investors, which brings the price back to the area of Preliminary Support. Often prices will bounce back after touching the Preliminary Support indicating the presence of Buying Interest. Springs - Springs are nothing but shakeouts that happens within the Accumulation phase. The prices will fall below the Preliminary Support of the trading range only to reverse back above the trading range within a short time period. (Often referred to as False Breakout) Springs are caused by Big Players to mislead the Public and acquire more shares at a lower price. It influences uninformed traders and investors to sell their shares at a lower price, as they expect a further fall in stock prices. You can see the example of Springs in the Image. Sign of Strength (SOS) - The Sign of Strength takes place after the Spring Pattern, indicating a bullish sentiment in the market. Sign of Strength can form like a normal pullback or minor consolidation at the Resistance level of the Accumulation range. It’s a confirmation that Sellers have lost momentum and prices will continue to rise on the upside. Most of the time SOS looks like a breakout setup which is often followed by a sharp rally on the upside. Take a look at the Image to understand SOS
OANDA:XAUUSDLong
by PAFXLTD