Wyckoff Analytics – Basic Charting Course

Wyckoff Analytics – Basic Charting Course

Types of Charts: Vertical (aka Bar), Candlestick, Point & Figure (P&F), Candlevolume

• Descriptions and visual explanations of each type, including appropriate usage contexts and benefits
• Vertical bar (+ volume bars) – Tape Reading
• Point-and-Figure – companion to vertical charts, horizontal counts, less price volatility (not time), tape reading, volume
• Candlestick – Basic structure + visualizations
• Candlevolume charts – Combining candlestick + volume

Time Frames: intraday, daily, weekly, monthly

• Traditional timeframes and how they are best used. Campaigns (weekly + monthly), swing (daily), intraday (intraday + daily)
• Combining multiple timeframes
• Price and volume patterns are fractal on different time frames

The Market as a Discounting Mechanism and a visual representation of campaigns actions conducted by the Composite Operator (CO)

• Technical Analysis reveals the Discounting Mechanism. Definition. Long-term trend initiation, with catalyst(s) appearing later on.
• The Composite Operator as a heuristic for institutional participation

Cyclicality vs the Price Cycle

• Technical Analysis Cyclicality. 3-5 year business cycle
• Business cycle corresponds with the market cycle
• Wyckoff Price Cycle: Accumulation, Mark-up, Distribution, Mark-down

Trends and trading ranges within Price Cycle

• Price Cycle sequence: Accumulation, Mark-up, Re-accumulation, Mark-up, Distribution, Mark-down, Re-distribution
• Cyclicality of Price inside the channel
• Different time frames’ cyclicality and the Price Cycle

Trading Range: Support/Resistance, Breakouts, Failed Breakouts, Upthrusts (UT) and Springs/Shakeouts(SO) or Signs of Strength (SOS)/Signs of Weakness(SOW)

• Technical Analysis: Trading ranges explained
• Technical Analysis: Support and resistance defined
• Technical Analysis: Breakouts and failed breakouts
• Wyckoff: Support and resistance defined
• Wyckoff: UT and Spring/SO as failed breakouts + SOS/SOW as successful breakouts

Trends: Definition – Higher Highs(HH)/Higher Lows (HL). Logarithmic vs arithmetic scales. Moving averages (MA), Linear Regression Line (LRL)

• Technical Analysis: Trend Definition. HH/HL for uptrends and the reverse for downtrends
• Comparison of logarithmic vs arithmetic scaling
• Technical Analysis: Trend defined by TA tools (MA, Linear Regression Line)
• Wyckoff: Also HH/HL

Trends: Conventional and Reverse Trendlines. Break of trendlines/Change of Character (ChoCh)

• Throw-overs and Oversold/Overbought conditions
• Break of Trendline signal. TA vs Wyckoff CHoCH
• Visuals: Multiple examples

Price formations: Technical Analysis Patterns

• Reversal vs continuation patterns
• Trading ranges, including triangles, flags and pennants, wedges
• Triangles of different kinds compared with Wyckoff’s Hinge or Apex
• Head & Shoulders, inverse patterns, double tops and bottoms,
• Parabolic, V-formations or spikes
• Rounding top/bottom formations

Wyckoff Price Formations: Accumulation

• Accumulation Events: Selling climaxes, secondary tests, springs, and others
• Accumulation Phases. Predictable sequences of Accumulation events

Wyckoff Price Formations: Distribution

• Distribution Events. Buying climaxes, secondary tests, UTs, and others
• Distribution Phases. Predictable sequences of Distribution events

Basic Technical Analysis definitions

• Volume leads price.
• Volume confirmation of price, with examples. Volume as evidence of Demand or Supply (or both).
• Volume divergence from price (non-confirmation), with examples.

Wyckoff Laws: Supply and Demand

• Wyckoff’s Law of Supply and Demand drives the Price Cycle. Example: Exhaustion of Supply in a trading range leads to an uptrend.
• Case study: Price Cycle resulting from changes in Supply and Demand

Wyckoff Laws: Effort vs. Result

• Effort vs. Results law. Definition.
• Result in line with Effort
• Non-confirmation. Result not in line with Effort.

Wyckoff Comparative analysis

• Original Wyckoff Course comparative visuals
• Basic construction and interpretation
• Significant highs and lows + slope
• Issues with comparative analysis

Relative Strength (RS) analysis

• Definition and basic construction
• Basic interpretation
• Heat Map ranking based on changes in RS

Technical Analysis Indicators useful to Wyckoff Traders. Rate of Change (ROC), Relative Strength Index, Stochastics, and On Balance Volume (OBV)

• Volume: OBV
• Momentum: ROC

Basic Technical Analysis P&F concepts (vertical measurements)

• One of the oldest charting methods
• P&F breakout patterns
• Vertical price objectives

Wyckoff P&F Basics (horizontal counts)

• Wyckoff’s Law of Cause and Effect
• Basic horizontal counting guidelines to determine price targets
• 1-box (swing) vs 3-box reversal (campaign)
• Intraday P&F counts examples

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