vsa with Malcolm

lol

is it climactic action bar?

please any explanation

chart

for a 2bar reversal shouldnt the 2nd bar be closing above the first? and on the highs.

VSA homework, gents

Look at AAPL and NG(natural gas) charts

Daily,weekly, monthly....

not always.

I took this as a sign of the composite operator defending a price level = SOS

Climatic action is as it says.... climatic so you can choose how many climatic action bars you want to see in a set period. For me climatic action has to have a certain set of reactions surrounding it for it to fall in this criteria. Every bounce of a support even when it looks dramatic is not climatic.... It does not happen often and usually causes significant change.

UNG is how I have always played natural gas. We may have finally found a bottom. Huge volume all this month and yesterday was the real sos.

Nice job keeping everyone posted, your a real beaver killer.

You still long the eurusd Ady?

Sure am adding to it as we go...

watching carefully now.
halfway through 'commitments of traders bible'

the battle ground....

one of them anyhow.

I would like to see a push up and test of 2.703 level for long up to 3.7 first and then see... back in 2009 when we were last at these levels we had a push up to 6.1...

Yeah, that would be a nice take for sure.

Volume has spoken!

Nice chart, Ady.

For the Creek, need to draw a wiggly line ?
But for Ice, need to draw a straight line ?

Where you labelled Springboard as an equilibrium area, my understanding is that Spring is more like a 1 or 2 bars pattern that acts like a Spring that reverse the downside fast, to go to a higher area rather than been an equilibrium area, and that it will occur late in the trading range.
Thots on this difference?

What is your potential target area for E/U ?
Can Wyckoff guide you in finding a target area ?

Ok good questions.

Ill answer it in part with my answer from another forum with a slightly diff set of questions but this may help you also.

Three laws:
Supply and Demand
Cause and Effect
Effort vs Result

Wyckoff states that the safest entry is when price pushes through Resistance in this case a creek formed by a trading range and returns to the creek (called backing up to the creek), and as price is often in a trading range it is a good thing to note (Creeks to Wyckoff were a meandering affair almost like a 'join the tops' and often branched, first branch is where increased volume is first noticed) and then comes back to test this creek almost like an offering to see if there any bears still game enough to take the bait- for a speculator has to be sure. Often price will fall back into the range indicating that there is still supply. So I think that (correct me here) Williams would call this a test- price is forced down to see what bites and then if successful price moves away very quickly. So my entry is to draw a line over the creek and look for price to come test this area (green line). there is no need to draw a straight line for ICE I just have in this instance. I find both Supply and Demand are fluid entities that move with the changing market conditions. Wyckoff thought in Waves and it is good practice to see the forces that change the market under constant change.

I should point out at this point we don't know if price will return to the range. It looks like it is a false breakout and this is intentional- think we need to remove any weak breakout traders. What I do know though is that at most I am risking 5-10 pips for a great entry. and the other key is I look for angle of attack, I want to see price driven down quickly to test not price slowly drifting down, I want the rubber band effect, price to pause at the bottom (fishing for bears) and then with not to many signs of supply price to move away aggressively. You see this in the 5min chart. I want this confirmed with price moving high quickly as its the time of the bulls.

With Wyckoff you are always building a cause and then looking for the right entry.

What confirms this breakout and test is:
(If they were not noted then I would be less inclined to think this was a trend change/retracement/reaction whatever it ends up being).

-Strength in background- effort vs results lots of volume and no change Wednesday last week.
-Range where the herd can be shaken out, what we see is that most bars close off the bottom, or if they do close on the bottom the reaction to that close is always higher, another thing worth noting is how the rallies are sharp but the retractions are slow (so the composite operator can buy into the selling- gives him every chance to buy) I call this type of range a springboard (Very different from a spring) as this is what it is shaping up to be a long board that will spring price up. We know there is resistance so we have to smash through. In reality it is also called a cluster of the closes, if we draw a line through the middle of the range you would find that most of the bar closes are very close to it, this is re-accumulation. The composite operators have spotted that the supply has waned and demand is stronger so they need a chance to re-accumulate to make any move worth while.
-This one is subtle but volume forms a crescent moon. Note how volume for the first two days (Remember its all very subtle) is high, (WED THUR) is higher which indicates a possible change in behavior, what we then get is more or less a trading range and chance for subtle re-accumulation which takes 4 days. It has been called the volume smile by Gary Dayton. Volume has been light as Supply was waning, there is stopping action (high volume- Left corner of mouth) then low volume re-accumulation (middle of mouth) then high volume breakout and move away (right corner of mouth)

And then its to the point and figure chart to determine the effect of this cause and determine a Take Profit. I have a TP of around 1.354ish but I am always vigilant of my targets and am humble enough to take what is on offer from the market. This is my weakest area it should be noted.

Thanks Ady for your explanation.

The "Spring" in Wyckoff would be similar to a "Shake Out" or "Test" in Williams.

Now understood your meaning of what is a "SpringBoard" as opposed to a "Spring".

In the SpringBoard area, I was expecting another Spring or SecondaryTest to signal price may go up like mentioned in the Wyckoff's Schmatic, but could see this hint in this SpringBoard area.

You said the in the SpringBoard, the closes seem be in the middle of the range giving hint of re-accumulation. What would give hint of distribution in such area ?
As in the Closes would be expected to be lower in the trading range?

Would like to see a picture of the opposite direction like a distribution in E/U when it comes. Hopefully you can post such chart when E/U is approaching this phase.
I find it harder to see distribution phases.

Perhaps the "SpringBoard" area may look like an "Overhanging Cliff" instead, it is just how to recognise this as it forms.

Your TP of around 1.354ish is from Point & Figure chart only ?
Would you mind posting this chart to show how you see the TP from Point&Figure ?

Noted about your weak area in targets, me too.
It is good to be humble. We need to eat our humble pies before there is a ShakeOut to those pies.

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Some nice explanations here on springs.

http://stockcharts.com/school/doku.p...lysis:wyckoff2

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