Hey guys, annotated a chart on re-accumulation you might be interested in. Not sure where the JAC is so I left it out. Possibly the small green bar, 7th from the end, is the area I'd consider, or is it the top of the range?
We've got a couple of early clues that this is re-accumulation rather than distribution. Opinions?
The yellow horizontal line is from the daily chart, major resistance.
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I'm not expert, but my opinion is that the area you call a BC is the AR (automatic rally). The ultra high volume is not that high compared to the volume on the right. The others lows would be the secondary tests, I think. I would be worried about the down bar on high volume too, except that the second one shows the level is being bought. The first bar you say is SOS could be the JAC or just pushing through supply. The down bar on low volume would be a test and a good spot to enter.
I personally have a tough time with these accum and dist unless it is really clear which it is in some cases.
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Thanks for the reply David!
Yeah, these things can be a challenge but hopefully with more practice we can recognize the characteristics of these Accum/Dist ranges.
The bar I call BC has ultrahigh volume compared to the bars on the left, I couldn't see the bar to the right as they didn't exist! I figured this was a BC so followed the action bar by bar. I believe I am correct on the AR tho. Those 2 high volume bars were meant to scare traders out of their positions, and I think they succeeded...
Had a nice follow thru in the next few bars.......
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Here is a chart of today's trend day in the S&P e-minis. It's a 5-min chart.
There is a lot to be learned from this chart. One of the key things is how price and volume interacted consistently all day - typical of a trend day.
I numbered price bars and volume bars. Can you see the relationship?
Intraday volume can be tricky to read because we generally see large volume off the opening, and again on the close. But if you look carefully, you will see that rally bars drew expanded volume, and the reactions had only light volume. Reactions also saw narrower spreads on the bar's ranges; the rallies had greater spreads. Bar ranges and volume both relate to activity. We see much activity on the rallies; much less activity on the pullbacks. With careful observation, you can see the rhythm of the rally waves and reaction waves.
The Wyckoff Method requires a very focused and concentrated approach. The chart will not part her veils for those who look only casually. Go deep into the chart and really see what is there for anyone to see.
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Annotated a chart for the recent action in CL. Looks like after a downtrend we had a period of accumulation, markup, re-accumulation (flag), then markup again. I looks like we have distribution going on at the moment. Not sure how long/far this could go but it doesn't look good for the oil bulls at the moment.
Questions or comments welcome!
So playing the short side only until I see some signs of accumulation....then the process starts again....
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I have written soem details about your labeled bars .. how i saw ,, the market (bars) ..
please let me know if i am correct .. thnx
average volume up bar closing on its high
close is slightly above the wide spread up bar on high volume wich closed in the middle (supply)
means most of the supply has been absorbed.. or was of weak nature
low volume down bar closing on its low
SM is not interrested in down move , no selling pressure
volume increases on this bar wich make a higher low and a higher high and closes on its high .. signs of strenght
4. small spread up bar closing on high at low volume . also closes about the same area
of the previous down bar .. wich has about the double amount of volume .. ie no follow thru
even this bar fell below previous bar low.. but rallied back . to its top.. no selling pressure .. weak supply
volume increases .. bar makes a higher low .. and closes slightly of the highs .. but above the close of the , upthrust bar.. weak supply has been absorbed
average volume up bar closing on the high , and nearly at the top of the penultimate up thrust bar on high volume.. there has some hidden buying going on in that upthrust bar--
high volume upbar .. making higher low and high , closing slightly of the top..
demand gets strong .. sign of strenght .. as its within a new high ground
8. small spread down bar .. closing off the low .. on low volume .. no selling pressure..
sm .. is not interrested in a down move... SOS
9. wide spread up bar .. on high volume closing slightly off the high .. making a higher low and higher high .. demand is still strong...
Wide spread down bar , on high volume closing on the lows -- supply hits the market ..
C. small spread down bar .. on low volume, wich felt below the low of previous high volume down bar.. wich rallied back to its high and closes nearly the same level as bar B
most off the weak supply is gone... SOS
wide spread up bar on high volume closing on its high .. demand swamps supply .. sos
E. small spread down bar .. on ultra low volume .. closing on its high.. and at about the same area .. as presvious down bar .. wich cloesd at the middle.. .. no selling pressure..
weak supply ..
small spread up bar .. on averaae volume closing off the high.. supply hit the market .. but we are holding gains.. probably some profit taking from weak holders going on.. wich gets absorbed.. by sm
any comments are welcome
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I looked at the CL march contract a bit closer so I could get a better idea on distribution. Well, I'm pretty sure its distribution!!! I guess I will soon see.
The TR is a bit odd but I referenced the PDF "MTA Journal - Anatomy of a Trading Range" and this TR seems to correlate fairly well with one of the annotated charts. These TR's seem to come in a variety of configurations but the underlying characteristics are generally the same. Amazing what you can learn by annotating any TR's that you find.
Just a thought but the Crude Report comes out at 10:30am today and I'm wondering if the big run up, then distibution yesterday, was an attempt to game that number. The conspiracy in me says yes.
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