georg7e

Db, This chart is from yesterday, 4/17. I read your comments about the failure at 80, about 7 mins. after the open, on ET. I wasn't sure about posting this chart and asking your advice in that thread, so I'll do it here. I have a yellow SL drawn pre-market, what I'd like to know is, is this a legitimate SL or is it irrelevant? Due to to the up wave from 6:25 to 8:05 and down wave from 8:05 to 9:30, which can have their own DL/SL, does all the action below the SL qualify as being part of a down trend, for context purposes heading into the open? I know from studying, to use the 60m for context and the 5m or 15m to find the range, but this SL cannot be drawn on the 60m. Btw, thanks for suggesting ET, there is alot of really fine info there regarding this method, I've been reading and studing for weeks. Your assistance is greatly appreciated. I sometimes wish I'd never brought up the lines as people cling to them like roots to prevent them from falling down the cliff. Unfortunately, they're necessary in order to talk about trends, trend channels, and ranges. But take care in relying on them to tell you what you ought to be seeing in price behavior. The story here has nothing to do with lines per se; it is the failure of traders to get past the halfway level of the downmove (which is almost to the tick where price reverses). As your yellow line can't even be drawn until the trade is gone, you're forced to enter later, at 80 or less, or even 76 or less, and the longer you wait, the more vulnerable you are. Try to avoid drawing lines unless they are absolute necessary. Focus instead on what traders are doing, or trying to do, particularly if they are failing in their efforts.

Db, For the purpose of devising REV entry rules in TR's. Does the UL and LL of a TR have to be traded at/near 2 times or is a swing high at 60 and a swing low at 40 enough to enter on the first test of 60 or 40? The upper limit of the range is the level at which buyers are no longer willing to pay the ask. The lower limit is the level at which sellers are no longer willing to lower it. These ranges are provided in my daily posts at ET. If the upper limit of the range is 60 and one wants to enter a reversal at the upper limit, he must first define what constitutes a successful trade and keep and maintain records to determine whether or not his definition is realistic. Is it a 5pt move? Is it a move all the way to the lower limit? His choice. Then he has to keep and maintain records regarding successful entries: is one tick enough? Two? Four? Is eight enough? Too much? At what level is he so late in entering that he is soon or immediately in the red? What criteria must he apply to determine whether or not the trade is still valid and, if not, where and how to exit? All of this must be tested and the trader must not only make choices but stick to them religiously. What somebody else does is irrelevant.

This is obviously hindsight, if you don't want post it or move it, that's fine, but just to confirm I am understanding the method correctly: Been in dwn trend all last week. Median of Wkly TC was approx. 4270, Friday's L was 4281, on the June contract, pretty close to median. Uptrend since 11:30 Friday, sorry all my times are PDT, 3 hrs. behind NY time, mkt has been in uptrend. Pre-mkt The line at 40 is RES from Db's 60min. chart. Before the O on the 15m chart, there was a clear UP trend channel and a rng from 2:00-5:15. O at 24.25 6:31 up to 30.25, +5.75 from O 6:33 dwn to 19.25, -5 from O The 15 min. shows that 19.25 was pretty much right on the DL and a couple of ticks above the MP of the pre-mkt rng., rejected that $. 6:43 a breakout above O H up to 32.5, a HH, was rejected back into rng, RET was pretty deep, but considering the TC & MP SUP at 19.25. 6:46 buyers came in at 22 a HL , there being a SL coming dwn, and according to one's rules this would be a potential SLA RET long entry, on a 1m chart, where a reasonably close stop could be used. Then ride the trend till exit rule comes. To be clear, this would be an SLA RET in an uptrend, I hope. Db, is this reasoning in accord with this method? If not, kindly, set me straight. Thanks. The diagonal lines aren't necessary, and the SLA really doesn't come into it until price leaves that pre-open range. But you appear to have the essentials. See the triple chart I just posted to my post above.

It seems like the market found buyers at 04.25 and found buyers again at 98.75. I was thinking that the 00 level was close to Wednesdays L 04.25. So, couldn't that be a test and rejection of 04.25, a failure to break thru? Yes, but in terms of the trading plan, it doesn't matter. There was no extreme there, so if one were short, there's no reason to exit the short in order to go long rather than just hang on to the short and let one's rules take care of the exit. If one were not short for some reason, then a long might be called for, but it wouldn't have been worth much. By "extreme" I am assuming you mean an AMT level, a mean or DL or previous proven SUP/RES. The LL and UL of a trend channel or the LL and UL of a range. I see. Thank you very much, Db

Db, I am thinking about posting some charts. Kindly, tell me how you post your charts within the text and how you size them. Because they aren't too small and there is no need to open a separate window. I think most would agree, it is better, easier, nicer and more helpful to read text and see a chart on the same screen at the same time. Thanks, George When you begin to respond, scroll down until you see Manage Attachments. Click that and upload it. Then once it's uploaded, right-click and select Copy Link Address. Then place your cursor wherever you want to image to appear, select the image icon above the message window, paste the link address into it and click OK. All of which is a giant pain in the ass. If you don't mind the troll problems at ET, posting there is a simple matter of copy and paste. No uploading involved. As far as changing the size, I use Paint Shop Pro. Perhaps Paint has that option as well. Can't say.

11/28/14 high was 4348.5. That's true, George. Have you read the SLA/AMT pdf? Of course. The November high isn't particularly relevant right now. What is of most interest is the median of the weekly channel given that we are so close to it. Wouldn't both, make it an even stronger potential place to look for a point where something might happen? The median of the weekly channel and the November high aren't related.

To Whom It May Concern, Kindly delete this thread, there does not appear to be any interest in it. Much Appreciated, George

I am starting this thread to see if there is any interest in discussing Wyckoff's Wave Chart or Tape Reading Chart. I am surprised that there has not been much discussion about Wyckoff's Wave Chart or Tape Reading Chart. It seems that they are the key to learning Tape Reading, "which is the art of determining the immediate course or trend of prices from the action of the market". "It aims to detect the moves that are likely to occur in the next few minutes or hours: getting in when they begin and getting out when they culminate." These are some quotes, not in any particular order, from the Division 1 and Division 2 courses pertaining to the Wave Chart and Tape Reading Chart : "The Wave Chart teaches Tape Reading. After you have used it for a while, you may not need it. Your eye and brain will see and record these happenings that you now are required to plot on the Wave Chart. After you have gone from the first step to the second, you will after a long time begin to develop intuition, by which you will know in an instant when a change in the immediate trend is coming, just as a champion knows how to hit a golf ball, without thinking of all the different motions necessary in doing it correctly. But do not abandon the Wave Chart too quickly and do not expect intuition to come until you have had long experience and much practice. Now that you have the idea, it depends on the amount of study and practice you put into it. What you see on the Wave Chart is the working out of the law of Supply and Demand. That Chart is a moving picture of a cross section of the market, designed by me for this very purpose — to help you get profits out of trading from the tape. Make the most of your opportunities. I have decided that the easiest way for me to teach and for you to learn Tape Reading is by means of the Tape Reading Chart which is described below. This Chart combines the three vital factors: Price Movement, Volume and Time in such a way that a trader can see at a glance just what a certain stock is doing; how it acts on the rallies and reactions; the volume of each trade; the progress of the advances and declines; the proportion of the rallies and reactions to previous swings; the lines of supply and demand; the best location for stop orders; the means of deciding when to move stops and how far, etc. This Chart, in fact, combines, on one page, most of the indications required by the Tape Reader. Tape Reading Chart is really a 1/8-point figure chart, combining volume and price movement, I will proceed with the instructions as to how this chart should be used in actual trading and forecasting. The market is continually giving information as to its technical position. It does this through the Wave Chart, which forms your background, and forecasts the immediate trend, you get all the little details if you will also keep the Tape Reading Chart. In short, it provides the means whereby you can substantially increase the accuracy of your judgment and the timing of your purchases and sales, enhance your understanding of the market's action at important turning points and hence your ability to forecast coming changes of trend before they are already well under way, and it affords an effective means of detecting the critical points in the market's travel from one level to another. When you learn to coordinate all of the factors revealed by these records in combination and use them properly, it will greatly strengthen your judgment. You will find that, whatever the market does, it will in nearly every instance tell you what it is going to do — and what the market is going to do is the most desirable thing to know in Wall Street. Or it will leave you in doubt, and then you must do nothing. THE WAVE CHART The determination of the trend of the whole market is the starting point of all our deductions and all our Commitments. As explained in Section 5M, this trend is built up by the alternating small buying and selling waves which follow each other in endless succession throughout each day's trading. These little waves merge into medium sized waves and the latter, in turn, merge to make up the large swings, that is, the movements of 10 to 20 or more points. Therefore, it is obvious that the market's behavior on the small waves must afford a very valuable indication of the future intermediate and major trends. (Sect. 4M, Pg. 27). One who is a proficient tape reader has an advantage in being able to watch the market all day long because such a person can study the interplay of the forces of supply and demand as reflected in the market's action on every one of these buying and selling waves. That is, he (or she) is able to judge what measure of success is attending the efforts of the floor and professional trader to advance or depress prices. The Wave Chart has the following very important functions: (1) It enables those who are not in a position to watch the market constantly throughout each stock exchange session to secure a condensed, easily understandable record of significant changes in supply and demand. This record can be studied at leisure, at whatever time is most convenient. (2) It provides an instrument through which you may enlarge your understanding of the market's behavior at important turning points; develop tape reading ability if you wish; and acquire the skilled operator's intuition whereby he frequently senses the turns without conscious reasoning. (3) It gives certain vital information by means of which you may attain proficiency in judging turning points in the minor swinger. (5) In short, it provides the means whereby you can substantially increase the accuracy of your judgment and the timing of your purchases and sales, enhance your understanding of the market's action at important turning points and hence your ability to forecast coming changes of trend before they are already well under way; and it affords an effective means of detecting the critical points in the market's travel from one level to another. Even if you plan to become an active, day to day trader, it is better at first to learn to analyze the market's tape action from a Wave Chart rather than from the tape itself. The chart teaches you how to become a sound judge of the market, for by its use you become familiar with all the elements necessary in successful trading: judging the lifting power as compared with the pressure; the market's responsiveness or lack of responsiveness to the rotation of supply and demand; the speed of the advances and declines as measured by the net price change and the duration of the buying and selling waves; the character of the buying and selling as revealed by proportional changes in activity and volume on advances and declines; and more especially, the changes from strength to weakness, from weakness to strength, and back again. All of these factors are revealed by the Wave Chart. It is the pulse of the market. From the above you may judge how vital it is, in the stock market, as in every other field, to get down to the right principles. Whenever you study the tape or a chart, consider what you see there as an expression of the forces that lift and depress prices. Study your charts not with an eye to comparing the shapes of the formations, but from the viewpoint of the behavior of the stock; the motives of those who are dominant in it; and the successes and failures of the buyers and sellers as they struggle for mastery on every move. Most of the popular prejudice against charts undoubtedly is due to the fact that many people mistakenly attempt to use charts mechanically — without judgment. They endeavor to draw diagrams or imaginary geometrical patterns on their charts, or apply arbitrary rules or systems such as “oscillators” and other impractical notions. Such methods are wrong. They lead only to errors, losses and discouragement. Therefore, you must remember this:- When you study charts look for the motive behind the action which the chart portrays. Aim to interpret the behavior of the market and of stocks not the fanciful patterns ("gaps," "horns," "flags," "pennants," etc.) which the charts may accidentally form. One who understands how to interpret charts correctly can usually decide whether the whole market, or any single stock, or group of stocks, is most likely to advance, decline or stand still. Every market and every stock is always in a bullish, bearish or neutral position (Sect. 18M, Pg. 4, Par. 3). The person who can determine, with a high percentage of accuracy, the position in which the market, or a group, or a certain stock stands, holds the key to success in trading and investing. THE WAVE CHART OF TAPE READINGS was designed and originated by me, in 1916 in connection with my personal operations in the stock market. It is made to provide a condensed picture of every vital development in every stock market session. It gives a graphic representation of the day's tape action which enables us to study the market's behavior at leisure, just as if we were watching the ticker continuously and setting down every essential impression. Thus, the Wave Chart is an invaluable aid whereby we may detect changes from technical weakness to strength, and vice versa, and so determine the turning points not only of the minor but also of the intermediate swings, frequently several days before the indications are given by the less sensitive popular averages." From: Wall Street Ventures and Adventures Through Forty Years Pgs. 178-79: “In contradiction of those who believe that tape reading is an obsolete practice, I affirm that a knowledge of it is the most valuable equipment a Wall Street trader can possess. If I were beginning my Wall Street career now, and knew what forty years of it has taught me, I should apply myself first of all to this business of judging and forecasting the stock market by its own action. It is something that requires long study and continuous practice.” It seems to me that the Wave Chart, or an easier modern day application using a ZigZag Indicator on an average like the NQ's, is very important. The principles stated in the old courses are just as true today as they were back then, but adjusting for the higher prices, bigger price swings, longer sessions, increases in volume and activity, is more difficult. Even though it is made somewhat easier due to computers automatically calculating and plotting the waves, the relevant wave information and using Averages or Indexes that have already been calculated, like the NQ's.

I do not know if this is the right thread to post this in. If it is not, kindly move it to the right one. Attached are .txt files of the data from many of the chapters of the original course and the course available on this forum. All of this had to be manually done, looking at the charts(usually with magnifying glass), reading the text, internet searching holiday dates and trying to determine the accurate D,H,L,C,V. The dates(D), on all bar & volume charts should be accurate. The P&F chart data is based on intraday data which, to the best of my knowledge, is not available, but the charts in the course show the months along the bottom and the end of each daily session with circles around the "x". Some of the P&F files have dates included, but those dates are obviously not from the 1930's, I just used those dates to import the data into my charting software, so that I could plot it. Also, on some of the data I entered false data at the beginning of the files so that some data would plot in the beginning of the chart, so one doesn't have to work right on the left egde of the chart. Chap9_PnF.txt Chap11_BS.txt Chap12_US Steel P&F data.txt Chap13_NYT1929PNF.txt Chap16_Anaconda.txt Chap16_AnaconPnF.txt Chap17_DJU1936.txt Chap17_DJU1936PF.txt Chap17_ElecP&L.txt Chap17_ElecPnF.txt Chap17_NYT1936.txt Chap21_ATT1932PnF.txt NYT 1930-1931.txt Chap16_NYT1934.txt

Sorry, I forgot to add the third page of data for the P&F in Chapter 13, for the NY Times. I also added some extra numbers in the beginning, so that the real numbers would not start plotting on the left edge. Attached is the full data for Chapter 13. Chapter 13 NY Times P&F data (2).xlsx

Attached are .xlsx files of the data, without dates, for Chapters 12 (US Steel) and 13 (NY Times) from the Original Course to plot the Point and Figure charts. Chapter 12 US Steel P&F data.xlsx Chapter 13 NY Times P&F data.xlsx

I appreciate you help Blowfish. I checked out The Swing Indicator, but it doesn't look like it includes the total volume for each swing.

I am looking to buy an indicator or an add-on for Tradestation that charts waves and charts the volume for each wave. The indicator shown on the chart posted by Tape Reader on Page 4 would do just fine.