Noob Stock Trader Trying to Apply Wyckoff

[NAVEEVIa 10]

The Plan

 

Setup

 

1. Reversal

a. Distribution /Accumulation with lower high/higher low. Lots of volume with no price movement.

 

Checklist

a.1 Potl. BC/SC should not occur in a trending market

a.2 Support/Resistance, trendlines should be broken on closing basis

 

b. Price advancing/declining on very low volume with lower high/higher low formed & confirmed with lower low/higher high Higher high/Lower low on very low volume (Buying/Selling exhaustion). Failure to breach high/low.

 

Trading Toolbox

 

1. Demand/Supply- what phase is the market in?

2. Trendlines, Demand/Supply lines

3. Support/Resistance ( Both intraday & before the open)

4. Price (Volume).

5. Refer lower timeframe chart for volume flow.

 

Exits

 

1. Break of trend line

2. Lessening of momentum( trend lines fanning out).

3. Buying/Selling climax.

4. Higher low or lower high formed.

 

 

Money Management

 

Position size with 2% risk on trade, take next trade after moving stop to breakeven.

Stop trading for the day at 2% loss

[NAVEEVIa 10]

 

All stocks are actively traded indian equities

[NAVEEVIa 10]

Plan not followed.

Rule no. 1 now is to stop trading after 2% loss .

Here are the trades

[NAVEEVIa 10]

 

Questions

1. How to identify a swing point in real time?

I can think of only one method that aswing point will usually be accompanied by a volume peak.

[NAVEEVIa 10]