Richard Demille Wyckoff Method

Actually, things have not changed. Human emotions (fear and greed) are what form the price patterns on charts. And they do not change.

You can take the leading stocks of the 1930s, 1940s, etc. and compare their chart patterns with those of the winners in recent years (Apple, Baidu, etc.), and you will see the same patterns (triangles, h&s, cup bases, double bottom bases, tight sideways bases, pin bars, etc.). We could split hairs and say that, structurally, there have been a few trivial changes (e.g. the tendency for stocks to fall on Mondays ended with the 1987 Crash, and since then stocks tend to rise on Mondays, in line with the other days of the week).

But why split hairs? As long as they are liquid, markets of today are just like the markets of Wyckoff's day.

i thought roofx is using the same thing...

Well said.

I believe you entered on the failure to make a lower low?

I have been busy with work and life but I am thinking about starting this thread back up. Anyone interested in me doing so? I have not changed my trading although slightly mofified, I am not really worrying about volume anymore, just the market structure and momentum.

Yes go for it Goods be interested in what youve got to say.

Also we will analyze CoT data (Commitment of Traders)

If you do not know what CoT is then please review this link. I am sure you will find it quit intersting and exploiting of the markets.

http://www.learningmarkets.com/under...he-cot-report/


One last thing I think it is very important for anyone really trying to get trading and that have been struggeling I have something else I would like others to read which I posted a long time ago.

http://www.forexfactory.com/showthread.php?t=367810

Hi goods,

I am a silent friendly reader of your thread so far and I am grateful for the material you posted additionally. I am not new to Wyckoff trading, actually most of my stocks and options trading is done using his methods as absolute basics of market structure.

So I would appreciate if you carry on.

In my opinion the VSA frenzy ( with all the add-ons commercial vendors offer ) has calmed down a bit, and now we are back to basics, and either way those traders who have studied Volume or VSA have now a much better understanding of the brilliance and simplicity of Wyckoff ( and his market phases ).

One has to learn to " see " this, then it becomes quite natural and efficient.

Best regards,

Mike ( + wife )

Yes it is very interesting. Waiting for new post.

msmarple, awesome I am so glad you like the thread. I placed a couple long eurusd trades today this am around 6 am and 7 am estern. Can you see why I placed those trades?

I thought volume was an important part of Wyckoff method?

I choose not to as it takes millions of dollars to move the currencies. Don't need a volume indicator to see volume. You see it in momentum when it comes to forex. What you think of volume in forex is not real volume. Volume in currencies (except for futures and option binaries) is tick volume. They count fx volume by up down tick positioning and not actual orders. This is why vsa in fx is not needed although some folks think so.

LPSY on cable D1 ? Sorry again I'm on my phone butwill post chart when I get home.

There goes the chart:



So do I read this right?

PS: As you can see I'm selling it already

Anyone know tell me what would be the criterion that "tol" Strip basis for defining acumlaçoes to catch the expansion fibonacci?

goods here comes a question or two ( I had to run some words through translate.google.com so I can understand it even better):
1. Does phase E of accumulation equals phase A distribution, do they follow each other or there is some ... how to put it ... uncertainty on the charts in between Acc and Distr?
2. Do you follow the patterns and the points in them to the point, are you looking for exact match, approx match? Is there such? (Guessing there isn't) How do you know in which phase we are currently?
3. I guess Q2 will answer this one too, cuz this one is how do you know when to enter the trade (if you ask me 20-30 pips the opposite direction and then your way is quite good call, I usually am wrong 20 pips at least.)
4. On this chart you marked some zones with red color (oh nice the redactor here underlines "colour" as wrong spelled, and in UK English it is spell just like that), I think you're pointing out Demand and supply, but how do you know how to find it?



Can you pinpoint them on this chart (with educational purpose)! And how do you know the significance of the zone (i.e. how much push will the zone influence the market)?



Under what circumstances you are usually wrong?

And here is some info about me, just so you know a bit more. When i was trading with the help of indicators I already knew they lag and none of them, by them self or combined will lead to winning strategy, I backtested almost everything I could think of, then I read ... web sites, forums, I even went to a paid seminar to find out the guy was full of ... he was talking things I figured myself on the 3rd week, and proved wrong on the sixth (wrote a script - ran it - it showed 80% lost trades in one year).

I am trading minimum amount allowed by trader per trade. I'll rarely (almost never) jump in two trades at the same time. If you ask me the leverage problem is somebody's else problem. Here is what I mean - as long as I'm trading minimum lots the leverage doesn't bother me, I'm never tempted to enter something more than micro.

From what I've read, saw, talked, discussed with other traders I really leave my trade to breathe (compared to others), I'm not scared from 50 pips in the opposite direction, my SL is on when I'm away or when I consider leaving the trade for a few days, and SL is usually 150 pips from my entry. But that is something I want to perfect - My entry's are usually wrong with 20-50 pips and I want them 2 to 5 pips wrong. When I get into something nothing but the best is satisfactory.

Looking forward to learning more.

PS: My first vouch to someone will go for goods for his desire to teach someone he doesn't even know.

sypherBG all good questions, I will answer these tonight when I am out of work if that is ok.

Sure it's OK goods, I'm here

I have a book to finish and I'll check all pairs for such patterns at the current moment and in history. (That's one of the things I like about this method, you want to check it, go back and check it. running a test on slow speed might help me learn on the go)

Hello Goods,

I just noticed this market structure on GBPUSD Hourly. I missed the trade although I saw this textbook spring, but in the heat of the moment I couldn`t find the right spot to enter - plus trading below 4H makes me nervous and I am not used to it.

How would you describe these areas, if you have the time to answer ?

No need to rush ;-)

Thank you to sypherBG, much food for thought.

Mike

You're welcome msmarple. I'm going to read the first few pages of this thread repeatedly and I'll definitely post here from time to time, charts and thoughts ... keep in mind Wyckoff was talking about stocks and here it's all about currencies, there is difference though, I'll look for such too, but right now I'm going to leave FF for awhile and head back to basics : Supply, demand, and such fundamentals to gain better understanding of the whole thing.

Edit : And I'm going to finish my "reacting on news" EA, cos I missed 200 pips yesterday by not running it (that would be GBPUSD)

Still trying to dig deeper in this method, and here goes another question (anyone with more experience may answer probably). Is it true that every time that you or me or any of us Buys a pair his broker Sells the same amount (plays against us)? If this is true doesn't that mean that all of us (small traders) that we do not influence the MKT at all ... not a pip? Even when we trade huge amounts. If this is so, it's not our psychology we must understand, and it's not our stops big players are hunting ... and its not about us at all.