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I'm following your charts using the TOS platform and I've marked a chart using Wyckoff terms. Please let me know if you think these are marked correctly. What platform are you using?
Can you help answer these questions from other members on NexusFi?
Well, I have mixed feelings about your chart. In my opinion, the ND, PS, and SC are incorrect. I do agree with your ST, Shakeout / Spring.
Gary
There is a substantial risk of loss in trading commodity futures and options. Past performance is not indicative of future results. The opinions expressed here are those of Gary Fullett, and are not to be taken as a recommendation to buy or sell commodity futures or options. This is for educational purposes only.
Thanks for your feedback. My chart looks like an intermediate reaccumulation, do you think? Possibly it should be marked similar to this figure. Its hard to tell sometimes, because every chart is unique.
I greatly appreciate your intense thirst to learn Wyckoff, and I will do everything I can to help you or anyone else looking for clarification. I'm not sure where you got this chart, but it's not an accurate Wyckoff chart. It has some Wyckoff in it, however. For example, you do not have a markup phase, then PSY, BC, then a trading range, then go higher. The essence of the BC is that the uptrend ends. In your example, the uptrend continues. The only way that works is if you have multiple time frames. In other words, you could have a BC on a 5 min chart, and still be part of the uptrend on a daily chart. I think if you Googled "Wyckoff Wave chart", you'd find some great examples.
Gary
There is a substantial risk of loss in trading commodity futures and options. Past performance is not indicative of future results. The opinions expressed here are those of Gary Fullett, and are not to be taken as a recommendation to buy or sell commodity futures or options. This is for educational purposes only.
I have a collection of articles and charts that I study and I should have given you a reference. I just assumed that the chart was correct. See attachment.
The Stock Market Institute and the Wyckoff course they have is the "bible" for traders, so that is the standard I go by. If you go to the SMI site at Wyckoff Stock Market Institute | archives, you'll see the following paragraph:
"The Wyckoff trader also wants to see a clearly defined stopping action at the top of an advance. This involves four steps. They are the meeting of preliminary supply, a buying climax, an automatic reaction and a secondary test. As an advance is approaching an objective, a reaction will develop over several days where the activity is clearly bearish. This is preliminary supply. It represents the first wave of bulls who bought at lower levels taking their profits. The meeting of preliminary supply is an early warning that an opportunity on the short side may start to develop soon. After preliminary support has been met, there will be one more thrust to the up side usually on wide spread and increased volume into an up side objective. This is the buying climax. It provides a clearer warning to the potential short seller that an opportunity is beginning to develop. The stopping action is completed by the automatic reaction and the secondary test. The automatic reaction is the decline that immediately follows the buying climax. It is caused by the exhaustion of demand on the buying climax. As the automatic reaction unfolds and the price retreats from the high recorded on the buying climax, some bulls will be re-energized and will begin buying again. However, at this point, they will be in the minority. The rally that their activity is able to accomplish will have less volume than wad present as the price rallied to the buying climax. It will also tend to have narrower price spreads to the up side and it will put in a lower top than was recorded on the buying climax. This is referred to as being the secondary test of the buying climax. It completes the stopping action and allows the price to begin preparing for the next move."
Gary
There is a substantial risk of loss in trading commodity futures and options. Past performance is not indicative of future results. The opinions expressed here are those of Gary Fullett, and are not to be taken as a recommendation to buy or sell commodity futures or options. This is for educational purposes only.
What are the patterns or indicators that will predict the breakout of the range? Will it be long or short? What's the best time frame to observe these indicators?
Wyckoff works on all time frames. The problem with shorter time frames is that they are susceptible to acute news items, thus making the chart noisy.
Usually, the market will jump over the creek or break the ice with increased volume and increased bar length. This will indicate specs and funds willingness to join the fray. The time frames that you use will vary depending upon your niche. I have my favorites, like everyone else.
If the market experiences a buying climax, this will indicate lower prices ahead, and a selling climax will indicate higher prices ahead.
Gary
There is a substantial risk of loss in trading commodity futures and options. Past performance is not indicative of future results. The opinions expressed here are those of Gary Fullett, and are not to be taken as a recommendation to buy or sell commodity futures or options. This is for educational purposes only.
There is a substantial risk of loss in trading commodity futures and options. Past performance is not indicative of future results. The opinions expressed here are those of Gary Fullett, and are not to be taken as a recommendation to buy or sell commodity futures or options. This is for educational purposes only.
The Wyckoff method takes a series of tests from observing both the Vertical chart and the PnF chart. It seems that there is a 5 step preliminary steps of stock selection and 9 tests to evaluate if the stock is ready to move and in which direction. In the attached article “ Wyckoff Laws and Tests”, Hank Pruden references a table summarizing these 9 tests that are described in SMI's 3 part article on " Stock Market Buying Tests"
The challenge for those of us who are students of Wyckoff is to practice applying these 5 steps and 9 tests to learn the Wyckoff method as discribed in the SMI Article Archives. Maybe our mentor, Gary Fullett, can help us with this.
