Trading The Wyckoff Way

[DbPhoenix 42]

If you mean what would be most like what Wyckoff traded, that would be the Dow. However, the Dow bears little if any similarity to what it was a hundred years ago.

[eminiman414 10]

Well I mean he followed the average then the stocks that aligned themselves w the average that were ready to move. Wasn't asking about wyckoff specifically but more about the principles. So if I was interested in trading stocks within lets say the Nasdaq I would follow the trend of what? The composite? If its strong find the sectors are strong then the stocks that are poised for an advance?

[DbPhoenix 42]

The principles are provided in Section 8. Begin with the market, in your case the Naz. And since the Naz has become a technology market, there's really no need to look at the other eight sectors. So look at the groups within the Technology sector (2) and the subgroups within each group (7 ttl).

 

Or go bottom up: find the stock thru some scan or other, then look at its subgroup, then its group.

[eminiman414 10]

Thanks. I skipped section 8 so ill check that out.

[sharehunter 10]

Dear All,

 

I take time to study quite much method and trading system. But most of them is not suitable for me. Until now I only use Wyckoff method, it is the best method and the best trading system I know. I am really fascinate on this method and I still on the way to understand more about Wyckoff method.

 

For the short term trading (4 day to three weeks), Wyckoff is really helpful, it helps me detect quite exact turning point and make profits for me. But it have some problem with intermediate trend and long term trend.

 

If index move sideway and then take off we can calculate the index target point and follow the trend until the supply over come demand. But some time market don’t move in sideway or only move sideway shortly, it make me in trouble . I am not sure how far market will go and which strategy I should use? You know strategy for the short term rally and long term trend is different. If market is rally in short, I will select high beta and high sensitive stock. if market is intermediate or long term trend, I will select stock in the Rhythm of market (good FA will plus point).

 

Please kindly give me a helps for my problem

 

Many many thanks for your helps

[DbPhoenix 42]

What do you mean by "Rhythm of market"?

[sharehunter 10]

What do you mean by "Rhythm of market"?

 

I mean i will sellect some stock which have historical:

- speculators like them

- usual rally when market rally

- have better performance than market

[DbPhoenix 42]

Since your questions are general, I can provide only general answers.

 

Trend is trend. It doesn't matter what your timeframe or bar interval is. If your stock is ranging, then the "trends" within the range are bound by the limits of the range. If it isn't ranging, then the stock is free to trend for as long as buyers are willing to buy.

[sharehunter 10]

Since your questions are general, I can provide only general answers.

 

Trend is trend. It doesn't matter what your timeframe or bar interval is. If your stock is ranging, then the "trends" within the range are bound by the limits of the range. If it isn't ranging, then the stock is free to trend for as long as buyers are willing to buy.

 

Hi DbPhoenix,

 

i know this question is quite general and it is also a difficult subject.

 

i mean that short term: 4 day to 3 weeks, intermediate 3 weeks to 3 month, long term: longer than 3 month and i only use the daily chart for my analysis.

 

i am sure that you know the important roles of determination trend is short term, intermediate term or long term. if we know the rally is intermediate trend, we will hold the stock and don’t sell when trend show the weakness and may will reaction but if we think it is short term trend we will sell if we see some weakness in trend.....

 

in the past, i just trade short term even market trend is long term ( i search on stock market, find out which stock is have SOS and buy it) it is safe but when i review my trading i see that it it better if i hold some stock rhythm of the marker. i think i should change my strategy.

 

really, Wyckoff give us clue if market lateral for a time and we can calculate the target from trading range but if market dont be lateral or lateral shortly we can not count target exactly so we dont not know that rally is intermediate trend or not.

 

i hope you and other experience trader here will give me a helps on this problem.

[DbPhoenix 42]

Yes, I understand the difference between short, intermediate, and long term. But as regards trade management, it doesn't make any difference. What you think is irrelevant. Whether or not you decide to exit based on a change in trend on the daily chart while the trend is still intact on the weekly depends entirely on your risk tolerance and, possibly, how fearful you are. If you did not decide before you entered where your danger point was, then decide now. If you're already past it, get out. Whatever targets you may have come up with and whether or not you reached them is beside the point.

[sharehunter 10]

Yes, I understand the difference between short, intermediate, and long term. But as regards trade management, it doesn't make any difference. What you think is irrelevant. Whether or not you decide to exit based on a change in trend on the daily chart while the trend is still intact on the weekly depends entirely on your risk tolerance and, possibly, how fearful you are. If you did not decide before you entered where your danger point was, then decide now. If you're already past it, get out. Whatever targets you may have come up with and whether or not you reached them is beside the point.

 

Dear DbPhoenix,

 

I got the point. I am just currious to to know that: at the beginning of rally. does you have any guidelineto determine this rally is short term or long term?

 

Thanks you

[DbPhoenix 42]

Dear DbPhoenix,

 

I got the point. I am just currious to to know that: at the beginning of rally. does you have any guidelineto determine this rally is short term or long term?

 

Thanks you

 

No. There's no way of knowing. Look at today's action in the NQ. All one can do is follow the trend and the waves.

 

Incidentally, those who do all their analysis in hindsight will give you all sorts of reasons why such and such did so and so, but ask them to do it in real time.

[DbPhoenix 42]

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[Niko 10]

Still on vacation, thanks for the update. See you all next monday.

[Gringo 10]

Yes, we miss you too Niko. Db has nothing new to add except for the same 100 year old demand/supply, price, volume, and trend gibberish. .

 

Gringo

[Gringo 10]

Here's something to look forward to. AAPL has been mentioned by quite a few on this thread. V was also mentioned a month or more ago. In any case have a look. Keep an eye on the Nasdaq as a weakness in general market conditions is hard to oppose by any individual stock.

 

One stock is possibly attempting to reverse a downward trend while the other is continuing with it. Which one would you choose to go long if the signal arrives? Why?

 

 

 

Gringo

Edited March 27, 2013 by Gringo

[DbPhoenix 42]

Keep in mind, though, that AAPL is not just any given individual stock. Along with GOOG, MSFT, QCOM and ORCL, it IS the Nasdaq. So following all five of these will give one some perspective on the Naz's future.

[DbPhoenix 42]

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[Niko 10]

NQ

 

 

Thanks DB, did not realize at first that although buyers have been making HLs the strength of the advance has been fading for a while.

 

After sellers managed to take prices down yesterday we are still within the boundaries of the TR (Ninja´s historical data looks different from investing.com) and still no LL, so the uptrend still holds. Looks like the MP of the Aug-Oct TR is providing important R. If sellers manage to hold and a LH is achieved then a break of DL would be the trigger to take a short. If buyers manage to break the ascending SL from Jan it would also mark a HH and as we would still be under the MP of the TC a new long could be taken.

 

CL

 

 

After a strong down move yesterday, sellers found S at the bottom of the TR around 96. We are still overbought but the uptrend still holds and no LH is on the way so no short could be taken around these levels.

 

As for a long we are way past that, just wait and see.

[Niko 10]

CL

 

 

A strong recovery came after S was found around SH of march 26th, the HL above the MP of the last swing was a sign of strength, but the lack of FT above PDH is something to watch from now to the open. We could be at the beginning of a new uptrend leg if PDH is broken and the HL holds or we could be entering the chop longer term in which case we would deal with and inside day. After the break below the DL looks like the LOLR is still up, but given the fact that we are overbought, R can come around these levels easily starting with the MP of the TR at 97.6.

 

Things to do:

 

If PDH holds, short a LH in a smaller interval, if PDH is broken take the first RET.

 

NQ

 

 

Buyers stalled around the premarket high yest and a strong sell off came after the PMI data, although the W trader would have taken the long at the REV from R before the data was released (see Dbs post). After the strong down move buyers provided S as expected at the bottom of the TR and around the TL.

 

At the time of this post we are at the Top of the TR where buyers have appeared to be stalling after a strong recovery during the morning.

 

We will have to sit and wait for a REV around R at 807 or a continuation of the upmove above R in which case we will still have plenty of R from previous TRs and PDH.

 

Things to do:

 

Short a REV at R

Go long on a RET at the break of PDH.

Edited April 3, 2013 by Niko

[DbPhoenix 42]

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[gozila 10]

Mr.Dbphoenix,

what is the best way to draw wyckoff channel without any human error ??

[DbPhoenix 42]

If you're asking generally, see Section 15 of the course. If you're asking specifically, post your chart.

 

And human error is always a factor. It can however be minimized if ego is not a factor as well.

[DbPhoenix 42]

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Edited April 4, 2013 by DbPhoenix

[Niko 10]

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Great stuff. Hope to see you in the chat again.