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The S&P Chronicles - An Amalgamation of Wyckoff, VSA and Price Action
1) - Via the swing high and closes, (when close together it provides a ''zone'')
2) - The first pullback is near the US open, I am not keen on taking trades within the first 30 minutes of trading (you may have noticed this within the Chronicles) However, the bounce we get off support is strong and a valid trade, a tad aggressive.......
The second pullback spreads increase, with the reversal at support being not as strong as we had previously seen, although is another valid entry (If I recall correctly the 5m chart emphasised the strength of selling)
This method is discretionary and dependent on ones psychological make up, chart reading ability, experience, account size etc entries and exits will always be different. Even with fellow experienced Wyckoffian traders, a simple spring setup often results in 4, 5 different entry locations
3) Its a complicated subject, one that I shall cover in forth coming editions of the Chronicles.
In a nutshell, simple pullbacks do not retrace deep into the previous swing/leg; roughly the 75-80% level and always hold key support areas. Complex pullbacks retrace deeper and can often penetrate support levels to induce bear traps etc. Price action can be sloppy and appear whacky at times.
Great questions,
F
Can you help answer these questions from other members on NexusFi?
The experienced Wyckoffians would recognise that a reverse use of trend line, is when we place the supply line first in an uptrend (due to it being a better fit) and then the parallel (demand line) Standard use is when we place the demand line first in an uptrend. Going forward we shall name the actual use of a reverse trend line as ''flipside'' to avoid confusion
Wyckoff and VSA principles at play in today's action:
Importance of Structure
Trend Channels
Classic Wyckoff - Accumulation (setup) Absorption
Change of Behaviour (setup)
Relative and Comparative analysis (Wyckoff thinking)
Multiple time frames
No supply
No demand
A very important edition of the Chronicles, many Wyckoff concepts
Appreciate you doing these lessons. I've been looking at them, and have started watching more videos about the method.
Particularly, it helps to see how you wait for the story to unfold, rather than jumping in at the first sign of strength or weakness, like I do.
So do you not usually trade the open?
"It does not matter how slowly you go, as long as you do not stop." Confucius
Wyckoff and VSA principles at play in today's action:
Multiple Time Frames
Overbought and oversold Conditions
Trend Channels
Effort vs. Result
Change of Behaviour (waves)
Confluences
Ease of Movement
Axis line (important structural element)
Comparative and Relative Analysis (Classic Wyckoff)
Effort vs. Result - hopefully the light bulb has just been switched on for me?
Comparable:
Smaller volume with bigger gain/loss (spread?) - less resistance - mainly buyers or sellers having their way
Larger Volume with less gain/loss (spread?) - more resistance (battle between sellers/buyers) and support/resistance become bigger speed bumps or brick walls
And those in close secession add to the story of strength/weakness?
