Sandbox

[gozila 10]

is this accumulation phase on 4 hour chart (eur-usd) ?

 

I thought this accumulation because as you see market make higher low & trading range inside box...and if not...why is it wrong ?

[gaelgss 10]

Attached are two charts for a wyckoff oportunity I identified last tuesday.

 

Firstly I plottes support and Resistance on the 60 min chart and price found support at the midpoint of a previous range at around 12:30 UK time.

 

I would greatly appreciate it some feedback on my interpretation of the charts. This is my first analysis so please forgive my ignorance

 

cheers

[Gary Fullett 10]

  gaelgss said:

Attached are two charts for a wyckoff oportunity I identified last tuesday.

 

Firstly I plottes support and Resistance on the 60 min chart and price found support at the midpoint of a previous range at around 12:30 UK time.

 

I would greatly appreciate it some feedback on my interpretation of the charts. This is my first analysis so please forgive my ignorance

 

cheers

 

 

You obviously identified a market that was going through some bottoming action. Though I would label things a tad differently, the main part of what you did was excellent work because you identified the proper Wyckoff sequence.

 

Gary

 

 

 

There is a substantial risk of loss in trading commodity futures, options and off exchange foreign currency products. Past performance is not indicative of future results.

[gaelgss 10]

  Gary Fullett said:

You obviously identified a market that was going through some bottoming action. Though I would label things a tad differently, the main part of what you did was excellent work because you identified the proper Wyckoff sequence.

 

Gary

 

 

 

There is a substantial risk of loss in trading commodity futures, options and off exchange foreign currency products. Past performance is not indicative of future results.

 

Cheers Gary really appreciate the feedback!

 

Do you agree with the support and resistance that I ploted on the 60 min chart?

[Gary Fullett 10]

  gaelgss said:

Cheers Gary really appreciate the feedback!

 

Do you agree with the support and resistance that I ploted on the 60 min chart?

 

 

Yes! Great job!!

 

Gary

 

 

 

There is a substantial risk of loss in trading commodity futures, options and off exchange foreign currency products. Past performance is not indicative of future results.

[Trader_Eight 10]

  Gary Fullett said:

[ATTACH]28535[/ATTACH]

 

 

 

There is a substantial risk of loss in trading commodity futures, options and off exchange foreign currency products. Past performance is not indicative of future results.

 

Hi Gary,

 

May I ask what charting software are you using?

[Gary Fullett 10]

  Trader_Eight said:

Hi Gary,

 

May I ask what charting software are you using?

 

 

Sure. I use CQG.

 

 

 

There is a substantial risk of loss in trading commodity futures, options and off exchange foreign currency products. Past performance is not indicative of future results.

[Trader_Eight 10]

Looks like an awesome platform. I will check it out. Thank you Gary.

[gozila 10]

I have a confuse with this candle

 

is this a stopping volume and as you see next bar is up ( confirmation for stopping volume)

 

if i have stopping volume and also i have confirmation ( next bar is up ) ,but the trend continue down as in chart

 

can i take this candle ( stopping volume ) as sign of strength or forget it because the trend continue down?

[Gary Fullett 10]

  gozila said:

I have a confuse with this candle

 

is this a stopping volume and as you see next bar is up ( confirmation for stopping volume)

 

if i have stopping volume and also i have confirmation ( next bar is up ) ,but the trend continue down as in chart

 

can i take this candle ( stopping volume ) as sign of strength or forget it because the trend continue down?

 

 

That bar that you see is a supply bar and is bearish. The subsequent behavior after that bar is also weak demand. If the trend is up, this could be a shakeout bar. If the trend is down, this indicates the likelihood of lower prices.

 

Gary

 

 

 

There is a substantial risk of loss in trading commodity futures, options and off exchange foreign currency products. Past performance is not indicative of future results.

[pocketwisetrader 10]

This stopping bar is vey wide than regular bar with huge volume. I cant see the left side of the chart but most likely it would have broken down from some pivot swing level. This is a big bearish action and follow through or new range should develop here.

 

Because this big down bar may create weak emotional stste in the market and weak holders comes back to offload their holding.....

[gaelgss 10]

Ok so this if what I found yesterday on a 1 minute EUro/Dolar futures chart.

 

Price found support where anticipated on the 7000 Constant Volume chart and it went through an acummulation phase that lead to a move up to the top of the channel.

 

Attached are the charts as I have labeled them. My understanding of wyckoff is basic so I would very much appreciate it some feedback.

 

When waiting to enter a trading at support, should I expect the whole wyckoff phase as described in the 1 min chart??

 

What is the best point to enter the trade???

 

 

All the best.

[Gary Fullett 10]

  gaelgss said:

Ok so this if what I found yesterday on a 1 minute EUro/Dolar futures chart.

 

Price found support where anticipated on the 7000 Constant Volume chart and it went through an acummulation phase that lead to a move up to the top of the channel.

 

Attached are the charts as I have labeled them. My understanding of wyckoff is basic so I would very much appreciate it some feedback.

 

When waiting to enter a trading at support, should I expect the whole wyckoff phase as described in the 1 min chart??

 

What is the best point to enter the trade???

 

 

All the best.

 

What you labeled as preliminary support is not preliminary support. There are two areas to enter the trade. One, which is more aggressive, would be to identify the absorption or hinge before the jump over the creek, and the best way to buy the market would be the area you labeled as a retest of the jump over the creek.

 

Gary

 

 

 

There is a substantial risk of loss in trading commodity futures, options and off exchange foreign currency products. Past performance is not indicative of future results.

[slick60 10]

  Gary Fullett said:

What you labeled as preliminary support is not preliminary support. There are two areas to enter the trade. One, which is more aggressive, would be to identify the absorption or hinge before the jump over the creek, and the best way to buy the market would be the area you labeled as a retest of the jump over the creek.

 

Gary

 

 

 

There is a substantial risk of loss in trading commodity futures, options and off exchange foreign currency products. Past performance is not indicative of future results.

 

Hi Gary

What exactly is the "hinge"? Could you post a chart depicting it please?

Thanks

 

slick60

[gaelgss 10]

  slick60 said:

Hi Gary

What exactly is the "hinge"? Could you post a chart depicting it please?

Thanks

 

slick60

 

http://img39.imageshack.us/img39/1752/dailysrlevelsnq2.jpg

 

You can find example of hinges in this thread and other posts in the wyckoff forum.

 

http://www.traderslaboratory.com/forums/wyckoff-forum/6274-support-resistance-trading-foresight-38.html

 

It is a setup that is a characterized by a compression in price (Lower highs and higher lows) giving it a triangular shape and a drie-up in volume.

[DbPhoenix 42]

I suggest also that you look through the Hinge thread (where you'll find plenty of charts posted by people who actually trade) and the original course (be aware that W used a number of synonyms for “hinge” such as apex, wedge, pivot, dead center, etc.). You can also do a search of this forum using “hinge” if you're interested in relevant posts outside the Hinge thread.

 

 

Db

[Gary Fullett 10]

  slick60 said:

Hi Gary

What exactly is the "hinge"? Could you post a chart depicting it please?

Thanks

 

slick60

 

I'll be happy to post a chart with a hinge later on today. Hinges can occur for the upside and the downside as well.

 

Gary

 

 

 

There is a substantial risk of loss in trading commodity futures, options and off exchange foreign currency products. Past performance is not indicative of future results.

[Gary Fullett 10]

  slick60 said:

Hi Gary

What exactly is the "hinge"? Could you post a chart depicting it please?

Thanks

 

slick60

 

 

Here's the chart I promised.

 

Gary

 

 

There is a substantial risk of loss in trading commodity futures, options and off exchange foreign currency products. Past performance is not indicative of future results.

[DbPhoenix 42]

Sorry, but this has none of the characteristics of a hinge, at least as described by Wyckoff. You're also suggesting a "perfect time to buy" that's only a few points from the top of the range.

 

I suggest again that those who are interested in this look at the Hinges thread.

 

Db

Edited April 26, 2012 by DbPhoenix

[DbPhoenix 42]

I set up this thread to provide a home for all the posts relating to VSA and SMI. I thought it would be easier to do that than to keep reminding people that the focus of the Forum is Wyckoff's original course, not any of the variations or adaptations of it. But it's not working out.

 

 

The typical visitor couldn't care less about and probably isn't even aware of all the “takes” on Wyckoff that are floating around out there. All he knows is that he's confused by all the buzzwords that are not part of the original course and on which the gurus and pundits often disagree. He reads about springing and jumping creeks and breaking ice but can't find any mention of any of that in the original course. That's because none of it is there.

 

 

Therefore, we're going back to what the Forum was focused on in the first place: Wyckoff's original course. All questions relating to VSA and the SMI course will be deleted and their posters asked to repost them in the appropriate forums (VSA has had one for years; an SMI thread can be initiated anywhere, except here).

 

 

Keep in mind that all of this is free. You don't have to subscribe to any newsletters or buy any “modules” or dvds or transcripts or tapes. You don't need to subscribe to or purchase any software or datafeed or plugin. You don't have to buy any course or course materials. All you need to do is read the material that's here and study it. And it won't cost you a dime.

 

 

Db

[DbPhoenix 42]

A springboard can be said to exist when preparations have been made for, and the psychological moment has arrived for, a quick and important move . . .

 

Auction markets are in continuous flow from trending states to non-trending states. If a trader is interested in movement and momentum, he will likely be interested in a trending market and try to avoid a non-trending market (what is often called "chop"). Springboards serve to alert him to upcoming changes from one state to another. They alert him to prepare for a transition (whether it turns out to be substantial or trivial) from non-trending to trending or vice-versa, i.e., that point at which price is on a "springboard" to an advance. One can busy himself with questions of who's doing what and why (weak hands, strong hands, professionals, amateurs, intent, prediction, and so on), but none of this is essential or perhaps even important. What is important is being prepared for whatever hand the market deals you. In this way, one can maintain calm and objectivity, not dither with last-minute surprises.

 

What one does with what is in front of him depends largely on whether he is in a trade or he is looking to enter one. If he is in a trade, he's looking for signals that momentum is slowing. If he isn't, he may be looking for the same thing as an opportunity to enter, depending on what else is going on (e.g., is support being tested, is this the end of a parabolic move, has trading activity spiked or evaporated). However, before getting into all the possible tactics that can be employed to play these movements, I suggest that whoever is interested in this subject work toward finding these zones where traders are seeking balance (or equilibrium or fair value or whatever one chooses to call it). Again, these zones occur in all charts in all timeframes. And if one understands why they form, he is less likely to be freaked when his trade stops, much less retraces (he will, of course, have decided in advance what he is going to do when this unavoidable circumstance presents itself).

 

To start, a chart of the DJTA over the past four years (originally posted in March ’07). It could be any instrument over any time period with any bar interval, but I'm being specific -- and using bigcharts, which is available to everyone -- so that anyone who's interested can follow along. I've also deleted the periodic volume bars and used dots rather than price bars in order to turn attention away from what is immaterial and toward the movement of price.

 

Without any annotations whatsoever, one ought to be able to see that price is moving in a generally upward direction with occasional "pauses":

 

 

If annotations are necessary, the following may be helpful:

 

 

The exact lower (support) and upper (resistance) levels of these "zones" are not critical. What is more important in each is the general area in which the bulk of trades occur. What may also be important to the trader from a tactical standpoint is the "mean" within each of these zones toward which price will revert when bouncing around between support and resistance.

 

Note that each time price trends upward, it then stops or pauses in order to find equilibrium (or balance or fair value or whatever). It may engage itself in this for minutes or years, depending on time frame and bar interval. Once it has found this equilibrium, it gets comfortable. This is a "safety zone", and the bulk of trades will occur here. These pauses are not as dramatic as the trending moves because it seems as though nothing is going on. But more trades are placed at these prices than at the prices within the trending move simply because these prices are traded again and again over a period of time. This process lays the groundwork for what may become important support and resistance later (as opposed to, for example, a swing point, which, while dramatic, represents relatively few trades).

 

 

Eventually, there is an imbalance, or disequilibrium, and the springboard makes good its name. Price emerges from this "comfort zone" and either reverses the trend or resumes it. The emergence may be gradual, or it may be dramatic, as with a breakout. Here, in June of '04, it moves up 200pts and immediately forms a new zone. Only later, in October, does it make a more dramatic move. But that, again, reverts into yet another zone in which traders seek balance, this one lasting for 11 months.

 

For those who aren't scalping and who like a deliberate approach to trading, the profit opportunities will most likely be found in the reversals which occur between support and resistance in these zones and in the breakouts which occur when price's state of equilibrium is fouled and it seeks a new one. But whether one trades reversals off of S&R or breakouts through S&R, he is working the edges and avoiding the "chop". If price isn't approaching S or R, much less testing it, he's waiting, and observing, and monitoring.

 

Traders rejected 5000 in May ‘06, then again in July. 4200 was rejected in August and September. This is a wide range, the mean of which was 4600. Price worked the area between 4500 and 4900 for several months, again seeking equilibrium. This equilibrium was broken in February, but traders have now returned to their most recent "comfort zone". This is where they can find trades and reasonable safety. Price may remain here and find balance either side of 4800 (again, this was posted in March ’07). Or it may try again to resume the uptrend. The reversals trader who doesn't mind trading tight ranges might trade here. The breakouts/momentum trader will wait for some determined move out of the range, either up or down. But he will not likely be searching for trades in chop.

 

If locating these zones or pauses in which these efforts toward balance and equilibrium take place is a problem, plotting "volume by price" can help:

 

 

Note, again, that the bulk of trades are taking place within these zones. It is those areas with the fewest trades, those areas where traders are least secure, where the most potential for price movement -- often sustained price movement -- occurs. If one has no understanding of support and resistance whatsoever, much less where to locate them, this is as good a place as any to begin, and better than most.

 

As for hinges, these are an additional aid to spotting those areas in which traders are seeking equilibrium. They are created by successive lower highs and higher lows and represent a tightening and compression. If interest is sufficient, this compression will eventually lead to a worthwhile move (if it isn't, price may simply dribble off into nothing worth bothering with). As Schabacker later said, these hinges or coils should be "filled with price", that is, there is no aimless drift but a struggle between those who want to move price ahead and those who don't. Therefore, price should bounce in an ever-tightening range which culminates in a release of pent-up energy and a tradeable move.

 

[DbPhoenix 42]

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Edited April 23, 2013 by DbPhoenix

[DbPhoenix 42]

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Edited April 18, 2013 by DbPhoenix

[DbPhoenix 42]

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Edited April 18, 2013 by DbPhoenix

[DbPhoenix 42]

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Edited April 18, 2013 by DbPhoenix