Wyckoff Analytics – Basic Charting Course

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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