Trading The Wyckoff Way

[DbPhoenix 42]

 

of course i can't tell the trend on monday i would have opened up past week, month , year or whatever i needed in order to to see what going on.

 

for me looking at this chart as is without referring to the left is belongs to the CWS thread or "sharpen your entries" thread..

i have not yet mastered the surfing ability.

 

When the week begins, the left is all you have. There is no right.

 

As for not being able to tell the trend, that isn't necessary. You know where resistance is and you have a trading range just below it. Therefore you either trade a break above that range, which would also be above R, or you trade a break below it. Surfing doesn't enter into it.

 

If you want to wait for a trend, of course, that's fine. But you have one almost immediately. You even have a RET on the fourth bar.

 

And if 30m bars are too fast for you, use a 60m bar instead, as I suggested. Or even larger. The principles are the same.

[jcite89 10]

Hi guys,

 

im new to wyckoff approach and im in the learning process.

 

i had purchase db book and smi course to understand the theory behind it.

 

Below is a chart of a penny stock.

 

From july 2 to jan 13, the stock is restless, no volume no price movement.

 

From jan 13 onwards, there have been heavy volume in up and low volume in down.

 

Just a general concept, is it a sign of accumulation taking place?

 

I understand it is easy for penny stocks to be controlled by others but the concept of

 

wyckoff still apply.

 

 

[DbPhoenix 42]

Hi There -

 

Apologies ahead of time.... I'm sure this has been asked in this thread somewhere, just haven't been able to locate the post.

 

Just curious of the importance of understanding figure charts. Also, the importance of the ability to actually plot out each figure to help us better understand vertical charts more.

 

I could easily spend a few weeks on this area alone and just want to see if it was even an area with considering putting alot of time into.

 

Thanks to everybody who puts the time and effort in here to stay consistent! :helloooo:

 

The P&F thread is here.

[DbPhoenix 42]

Hi guys,

 

im new to wyckoff approach and im in the learning process.

 

i had purchase db book and smi course to understand the theory behind it.

 

Below is a chart of a penny stock.

 

From july 2 to jan 13, the stock is restless, no volume no price movement.

 

From jan 13 onwards, there have been heavy volume in up and low volume in down.

 

Just a general concept, is it a sign of accumulation taking place?

 

I understand it is easy for penny stocks to be controlled by others but the concept of wyckoff still apply.

 

Welcome. If you haven't read the Introduction, you may not know that this Forum is about Wyckoff's original course, not the SMI variation. Therefore, you may "know" some things that aren't true.

 

As for this stock, concerning yourself with accumulation except in an academic way is probably a waste of time (the whole accumulation thing is a big deal among gurus and vendors who are trying to sell you something). In this case, since it formed a base for months without falling (though there was virtually no room to fall), one can assume that someone was supporting it. It then moved up very slightly, where is has been sitting for more months. So what you do about this depends on your "opportunity risk", i.e., the risk you assume by buying something that's going nowhere and preventing you from trading something that has better and more immediate prospects.

[edgararakelyan 10]

Just curious if you guys use any ma, because other than ma I just use price and volume and am pretty good at it I suppose.

[DbPhoenix 42]

Just curious if you guys use any ma, because other than ma I just use price and volume and am pretty good at it I suppose.

 

No, no indicators....

[gozila 10]

DbPhoenix, Why are you not using volume when you analysing chart,especially you are using wyckoff method??

 

Are you take in your account the trend on Daily chart when you trade on 1minute chart NQ or no matter

[DbPhoenix 42]

DbPhoenix, Why are you not using volume when you analysing chart,especially you are using wyckoff method??

 

Because few people understand it and it's not worth the trouble.

 

Are you take in your account the trend on Daily chart when you trade on 1minute chart NQ or no matter

 

See the charts I've been posting for the past three weeks.

[fxpaulm 10]

DbPhoenix,

 

I've read the stickies and Wyckoff and want to thank you for all of your work and effort. I do have a question, on this chart would this be a valid hinge

 

 

Thanks

[DbPhoenix 42]

DbPhoenix,

 

I've read the stickies and Wyckoff and want to thank you for all of your work and effort. I do have a question, on this chart would this be a valid hinge

 

[ATTACH]35865[/ATTACH]

 

Thanks

 

Perhaps, but without volume there's no way to say for sure.

[fxpaulm 10]

When I click the attachment the chart opens in a new tab, sorry not sure how to post charts in other way.

[fxpaulm 10]

Also, no volume available it is a 30 min chart of the USD/JPY. In the futures market the Yen volume dried up as it was approaching its apex and then the breakout saw drastic increase in volume,

 

One more question, it looks like sometimes you do not use volume and said most people do not understand it anyway, so is volume important or can you make do without it?

 

Thanks

[DbPhoenix 42]

You will very likely learn more about volume than you want to know by reading the volume thread.

 

You should also know that I don't comment on Forex charts. Sorry.

[fxpaulm 10]

No problem and I've read most of the volume thread and the Wyckoff volume material, I was just confused with some of your remarks about volume.

 

When it comes to forex, do you not look at it because no volume and centralized market? I've been in forex a long time, it is much better today than it was 10 - 15 years ago.

 

Thanks

[DbPhoenix 42]

Since so many people have been taught so much about volume that isn't true, it's easier to just skip it entirely and show people how to trade without it. If someone shows a knack for this approach, it's not difficult to incorporate volume later.

[Trader Nick 10]

I'm working my way through Wyckoff after lurking through the threads for sometime. I now can see how it would have been much more valuable to have gone through the book before exposing myself to the threads which just left me confused.

 

After the book, might someone recommend the thread that should be followed up with to help incorporate the concepts and see how it's all done by the TL traders here on the forums. My understanding was the Trading in Foresight thread unless that has changed..

 

I'm just so grateful that such a resource here exists (the forum and community), and that I was able to stumble across it before I went further and further down the wrong path.

 

I have to laugh when I see pop ups when doing research and seeing adds for some hotshot millionaire penny stock trader Timothy Sykes pedaling his BS products.

 

Thanks again for all the contribution here on the forums.

 

Nick

Edited April 24, 2013 by DbPhoenix

[fxpaulm 10]

DB,

 

Do you know of anyone here who does trade FX?

 

No.

 

Since one can show a real knack for this type of trading without volume, then why the lack of forex traders using price action like Wyckoff?

 

Lack of interest. Few want to be traders. Most want to be engineers, or mechanics, or statisticians, or accountants, or mathematicians, or psychologists. Or gamblers. And it's become much worse over the years.

Edited April 24, 2013 by DbPhoenix

[fxpaulm 10]

Last question, I've recently been exposed to S. Seiden and OTL and he uses supply/demand levels. Of course they say they are looking to trademark their system, but that sent me looking for supply/demand and trading and I found Wyckoff and then this Forum.

 

My question is not knowing much about the way Seiden uses supply/demand, only have seen one video of it, but is there any similarity between the two methods of supply/demand?

 

Thanks

 

Can't say, though I'd want to know why he's a vendor and if I can observe him trade real time. Otherwise, I'd pass.

Edited April 24, 2013 by DbPhoenix

[tupapa 10]

keepin it simple

 

[tupapa 10]

Playing the Range

 

[DbPhoenix 42]

For those who are following daily charts, the following may be helpful. The short and long are extrapolations of last week's charts.

 

Given what's been posted elsewhere recently about trading price action being "nonsense", these charts have more than one purpose, including the four years' worth posted in the Foresight thread.

 

Note that it is necessary to place the entry more than a point away from the trough or the peak of the RET unless one can afford a fairly wide stop.

[tupapa 10]

For those who are following daily charts, the following may be helpful. The short and long are extrapolations of last week's charts.

 

Given what's been posted elsewhere recently about trading price action being "nonsense", these charts have more than one purpose, including the four years' worth posted in the Foresight thread.

 

Note that it is necessary to place the entry more than a point away from the trough or the peak of the RET unless one can afford a fairly wide stop.

 

Did you trade todays NQ auction? I found the first 45 minutes a complete nightmare to follow..

[DbPhoenix 42]

Did you trade todays NQ auction? I found the first 45 minutes a complete nightmare to follow..

 

Yes, but not for posting. The three weeks of charts I did post are enough.

 

But it's important to establish criteria for ranging. It was clear after the first two trades that price was going to be bound, so there was no point in getting chopped up until price exited from the congestion. That didn't happen until 1015, after which price began ranging again. But then 1100 rolled around.

 

In any case, losses, if any, were minimal, as was risk, as always, if traded properly.

[tupapa 10]

A look at the AD Line for equities, showing three blatant divergences. The number of advancing stocks is increasing, but the overall index is, so far, struggling to keep up.

 

[fxpaulm 10]

What is the difference, if any, between a hinge and a symmetrical triangle?

 

Thanks

 

A symmetrical triangle is simply a pattern. A hinge is created because buyers and sellers near an agreement regarding value, and its primary characteristics are that it's "filled with price" (Schabacker) and that the trading activity tapers off before price exits from the hinge.

Edited April 26, 2013 by DbPhoenix