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The Wyckoff Wave structure is a classical model in how the market moves. As you know, markets do not always move classically, in fact, they rarely do. But we can identify the phases by price, action and volume. You are correct that each market has it's own characteristics. There are times in which price, action and volume will not be in sync for a period of time. But the Wyckoff principles are proven to be a successful tool, so we are always looking for the price, action and volume that coincides to Wyckoff principles.
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.
Can you help answer these questions from other members on NexusFi?
On the daily chart, at the end of December there was a large bar down with high volume. This appears to be some stopping volume as the market did not markdown afterward. The retest in the middle of January was on increased volume but a midrange close, thus some stopping action as well. In order for a market to turn up, we need to see some demand. In early February, we see some type of demand. The sideways action since then are smaller bars and is holding the demand bar gains from the middle of Feb. On a daily basis, the stock should hold the 24.00 area, which was the bottom of the demand area.
On a weekly basis, the market remains in a downtrend and will need more time. 33.00 area is resistance. On the weekly basis as well, 24.00 area should hold. The stock is too early in it's phase to have any markup. It needs more of a testing process.
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 also have a glossary of Wyckoff terms on my website if you'd like to check it out.
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.
P&F is used for count, but many times, you can see the sideways trading ranges just like you can in bar charts, so I sometimes treat them in a similar way.
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.
A trend line is not such a reliable tool with Wyckoff without the use of the reverse trend line. The mirror image of a trend line is a reverse trend line. This shows (reverse trend line) an overbought / oversold condition ONLY, in the channel. It is used as a cautionary line, but does not give a counter-trend signal.
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.
A trade I had monitored today with a few others in my chat room. I called it every step of the way, but did not enter it as I have been struggling lately with the "buy the dip" or "buy support" mentality. Spending too much time trying to buy breakouts.
At any rate the picture is pretty clear. TZA had consolidated just under R1 for the majority of the day. Formed a creek at 18.99. Broke the creek only to-retest it, at which point it was all signals go as buyers came rushing in. As I'm typing this TZA is still trading within that new channel and just made a new high of 19.41 ..... actually going off in after hours now 19.62
How long did it take some of you before it became firmly entrenched in your mind how to buy supports?
It's a mindset thing. Buying support in an uptrend and selling resistance in a down trend is a very fundamental thing to do, and yet it one of the hardest things for traders to do. The reason why buying support and selling resistance is a very good niche to have, is because markets spend the majority of time in these trading ranges. Traders feel that when a market is going to support, that it will break that support. In fact, in an uptrend, this is where strong hands will defend the position, and vice versa in a downtrend. Traders area always thinking breakouts, and that's where your mind can play havoc with you. Funds and specs can make large money in trading breakouts, but this tends to be rare because they tend to get out too early and miss most of the move. If they do catch the move, they always tend to get out too late, when the trend changes. I like to buy in uptrends at support because this is where large interests tend to be as well, and I want to be on the side of trend as often as possible.
The most important information a trader can have is trend. So don't be afraid to buy support in a uptrend or sell resistance in a downtrend because you greatly increase your odds of being profitable because you're making the proper trade. If you do lose money in buying the uptrend or selling the downtrend, the market can be having a change of behavior, and then you have to readjust your trades.
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.
