Richard Demille Wyckoff Method

Hi sypher, could not get on earlier been busy lol. Well there is the thing, the chart looks good and you have the right idea, the only thing is you are getting in too late. Why get in the short so late after you can identify a top building? I would have gotten right in after the UTAD, based on the tf of your chart, your chart looks like a pretty big tf so you still could deal with a bit of drawdown, or it could take quite a bit of time to get into profit.

I always try to get in around the UTAD, or just after a spring, because you know you are in a safe zone there.

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?

A. Phase E of accumulatio = Phase E of distribution, just flipped up side down. Not facing a mirror. Get it?. Also remember the market is like a snowflake, there might be similarities, however there are also differences. These waves are not designated as market standards, they are visible to the human eye and Wyckoff simply defined a similiar pattern he identified over and over. See you can't count on the patterns to be exactly the same: LPSY, UT, Where the Creek/Ice is broken, ect...

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?

A. No I do not follow them to the point, and I never look for exact match for the reason I pointed out in the first answer. I do not sit there measuring BS, ST, AR, ect... If you read in my very first posts of this thread, a friend of mine pointed out that my charts looked a lot like the Wyckoff method. What that is stating as that I simply identified market makeup the same way as the one described in this overall thread. I started reading into what all these different waves are but I choose to just KISS really. I would not get so cought up in the waves themselves. What I am trying to teach is people to see the market naturally. My Triggers are watching for the UTAC, UTAD areas. I then get in when ST areas begin (secondary test of accumulation support or distribution resistance.

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.)

A. Practice my friend.... You ever heard the term, trumping the trend is like catching a falling knife? Well I wait till I can somewhat identify the trend has ended (not buying in the middle of price falling, and not selling in the moment market is rising), and accumulation turns into distribution, by identifying the market makeup identified in this thread. The market needs time and space. Don't think I know that I am absolutely right in every trade. I go in the market with the mindset and understanding that I am exploiting to my best ability to enter a trade that has a pretty good chance of going my way. I don't necessarily know if I will have a winner or not but my odds are a lot better when looking at the market this way.

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? {image}

A. I have misspelling's sometimes because my auto correct lol. I am busy man and do not catch the auto correct every time. Usually I am multitasking and things are super busy for me so I do not pay enough attention to if I missed a character or added an additional character in my typing.

Demand and Supply when I was looking at volume (tick volume) you can identify peaks of volume at the end of the trends. That is simply all I was pointing out. It can be used as confirmation. See that tick volume, is acceleration of the market. those low volumes are declaration of the market.
Have you ever heard of market momentum? This is one way to identify it.


Thank you for the vouch my friend. One thing I will say... to clearly see the market you must go in with low leverage. I look for trades I can get into for swings consisting of 2+ days. Sometimes they will last a few weeks, sometimes they wont even last a day lol. This is something that you have to learn to come to terms with. I traded a lot on the eu the past couple days but did not get much. Reason being is I protected my trades. Sometimes you will get runners sometimes you will get stopped out and the range continues. We as humans can not possibly predict the market accurately.

This is an excellent chart.

Those areas show higher high's and higher lows, within a trend change.... that is simply classic and that is what I look for when I see if the market is geared to take a push in a particular direction. That blue square around the spring (fakeout), is my confirmation to go long.

Do you see the chart on my first page?

http://www.forexfactory.com/attachme...1&d=1340318720 This is the chart I posted in how I usually see the market when I went to enter a trade, along with Wyckoff market makeup

Most forex broker's take the opposite side of your trade. This is why they have a spread. If they did not take the other side of your trade, there would be no spread. Have you ever looked at futures? Well future brokers do not take the other side of your trade. They simply charge you a flat fee for the trade, not a spread. Also, the FX broker knows most people are on the wrong side of the trade.

The small traders do have an influence in the market but is maybe only 1/10'th of the overall market. The big players are the commercial traders (This is why I love COT - another tool to use on which direction the market influence is).
As far as the stop hunts, we do need to have a proper psychology when trading. there are stops all over the charts, and yours and mine are in a cluster of them somewhere. A big bank and a big hedge fund will push the market to certain levels, stops will be triggered and volume will be generated.

The market is not about us at all. We must exploit the market in any way we can to ride the waves. This is why I love this method so we can have a very good probable chance of riding with the big boys.

I am going to post a setup I am looking at. I am going to do this by looking at the market in the most simple way you can possibly look at it. Standby for the following post.

Here is my overall belief. In the first postings of this thread I posted the explanation of the market by Wyckoff.

I think people make it more difficult than it is, especially when they are trying to identify these key areas below. Now my purpose of this thread was not to get you to memorize this or identify these exact areas and hard coding your charts. If you can learn to see the market and have a basic understanding do you really think you need to define every single bit of these areas on a chart? The answer to that question is no you do not. As a matter of fact, my whole purpose is to get you to see these areas as a whole not as 24 individual markings on a chart and ABCDE Phases.

This is about as simple as I like to keep it.
http://www.forexfactory.com/attachme...8&d=1341537528


You do not need to memorize or mark up all your charts with all of this lingo... you can see it without all of that, however it is good to be aware of it so you understand the market.

AR Automatic rally or reaction
BC Buying Climax
BOI Backing upto ice
BTI Breaking the ice
BUEC Backup to edge of creek
CREEK Critical support
FTI First time over ice
ICE Critical resistance JAC Jumping across the creek (or JOC)
LPS Last point of Support (Demand)
LPSY Last point of Supply
MD Mark down
MU Mark up
PS Preliminary support (Demand)
PSY Preliminary supply
SOS Sign of strength
SOW sign of weakness
ST Secondary test
TSO Terminal shake out (Spring)
TUT Terminal thrust
UTAD Up thrust after distribution
SC Selling Climax
TR Trading Range
UT Up thrust

TY goods for your time and wisdom.
On Q1 I think you didn't understood the question well, I meant something like that ( as you will see Phase E dist = Phase A acc).



"The small traders do have an influence in the market but is maybe only 1/10'th of the overall market. The big players are the com..."
If you Buy and your broker Sells at the same moment with same size ... then your pushup on the price is pushed down by the sell order of the broker, isn't this so? Later on when your stop/TP is hit you're actually performing sell deal whereas your dealer is executing his buy deal ... no influence on the mkt again.... however this part of my thoughts was kinda off topic ....

The chart I presented is GBPUSD daily, and before my entry I didn't had the tip to look at blank charts and look at them like that(although I could've waited to see UTAD before I jump in). That might be wrong entry though but I'm here to learn. Now that I know better I'll be looking for probable UTAD. I will post my trades here with charts and so on so we can discuss them.

BTW I deployed my on news reaction EA on demo EURUSD, GBPUSD and USDCHF and will watch their results as what seem volatile week is ahead.

Got the idea goods

This one got stopped out badly -165 pips from this trade. MsB*tcb has pips to give back now , i'll see to it ASAP . Expect further posts here since they will be based on this system. Just so you know if EURUSD hits 1.321 I'll be -210 pips also. The EU deal wasn't based on this method...

Sypher I am curious to what eu trade you took and I am uncertain about why the trade on cable was such a late trade. I hope you were not live as I suggested not doing this live till you get the hang of this price action. I always posted to protect any trade. I also stated that this is not 100% but your odds are better when looking at pa like this. Please elaborate account live or demo time frames stop losses ect ....

I also stated that earlier this is not a signal thread.

I also informed you it takes lots of practice this is. It am overnight thing. I get losses but winning is greater than loss. This is why you are supposed to treat this as a business.

Thanks Goods !

Yes, I read the posts from the beginning ( numerous times ), and thank you for the response. I just find it difficult on 1h or lower to act according to what one is seeing, I love this way of looking at a chart however. I will post anything of interest next week if I see something.

sypher : I honestly dont know why you went short on GBPUSD. Sorry to hear that you didn`t cut the trade early.

As soon as I saw on WEEKLY and Daily that last years LOW was holding up, I didn`t want to go short. In this pair I am a bit undecided and will wait. If you measure the retracement with good old Fibs you can see we have not reached the 50%, so it CAN in fact just be a correction. But I would wait for confirmation first. That means action around 1.55804, or ultimate the 1.56259.

Good trading to all .

Mike

GBPUSD Weekly.
I always keep a profile on MT4 with weekly charts of the Major pairs, with prior years lows and highs. I learned this from a bank trader, who said that these levels are very important for institutions. Additionally they look at the OPEN and CLOSE of the Month, Week and Day.

Sypher : I suppose you looked at this gigantic range and thought that it is some sort of distribution pattern in the Wyckoff phases manner.

But note that Wyckoff describes this distribution pattern after a rise ( mark-up ) has already happened.

On the other hand if you look at the path that GBPUSD travelled before this range, you can see we came from these lofty highs back before the 2008 crisis, so we could say that we might be accumulating to some sort of degree for a rise back higher ( which will happen if the interest rates switch from low to higher, in order to curb the inflationary threats after so many years of BoE money printing ).

Hope that helps.

Mike

goods the trades were on my live account, the total of the loosing trades this month is around 5% of the account (if SL on EU gets hit), and that comes after around 15% up of the account, so it is OK for the month. msmarple the short was based on "probably false move" thinking, + it didn't look so stable at the moment of the entry. you can see the chart I posted earlier in the thread. at that time I already closed all the tools as Fibs, Pivots, ect. so I couldn't see the levels there. (I'm pretty sure it will go down now, it already took my SL so there is no reason to pull up anymore just kidding)

The EU deal was going good, and could've been winner if I was in front of my PC when Price went bellow 1.30 however ... I still consider it wrong trade. I don't really remember on which TF I was looking for EU, cable was daily, SL set above psych 1.555 (15.02.2013 high) gave it 15pips more (if it was 16 I would be still in, however I don't change my SL levels unless when I see it ITM, then I'll put SL +2 pips to protect the trade).

goods I don't read anything on web as a signal to go in or out of trade, just looking at traders mind and trying to understand more of the game. I don't consider my postings signals and I won't advice anyone to follow them, just thought it would be helpful for me and anyone reading to see my mind, mistakes and good calls. If you don't like the idea of posting charts and trades here let me know so I don't spam the thread. I don't blame anyone for my losses (can only be thankful for my profits by using someones shared method of viewing the market, MM (that would be ETJD) ect.) and I don't expect anyone to thank me or get mad at me for trading my posts.

Tomorrow I'll go fishing (real fishing) ... I might post some pics if I pull out something worth showing.


Two loosing trades on my EA so far, reacted on PA on cable , right after reaction (next bar on M1) the deal is in profit +30 to 50pips, and later on it gets stopped. Maybe I should change trade entry to 5 pips, and TP closer to the entry so it can get hit ... or use my earlier developed EA "protect the entry" if I still have it around. Testing continues on that demo.

Back home finally, the vacation is over. The fishing got extended from one to three days and involved much more people than originally organized Went well though, my parents and my neighbors eat fish for a week meanwhile Wyckoff got me in a few deals that stunned me ... +100 pips on the "highly active US session" eurusd, from 1.316 to 1.306, then another deal there from 1.304 to 1.298. Made a few losers while trying to position myself correctly but still the overall is profit. Learned something new and I'm now using it "When I think it will probably rise to 1.30 and I will sell there, it is much better to wait and see if it goes there and above and sell on the way down later" cuz in most cases it will go to 1.301x, make me doubt my original opinion and then goes my way. Close observation to the MKT helped me improve my entries and I was proud with a few of entries to the tip (I sell and this is the last time I see this price for the day or so). It is time for me now to reread this thread from page one.

BTW when i got back my EA was + 30 EUR on USDCHF with 0.01 lots trade, and +30.40 EUR on GBPUSD with same trade size , good profit but it was based on a bug, both trades should've been edited and should've took profit @ 100pips. sadly on a demo account.

Recently I'm short EURUSD from 1.29785 on my live. Target - end of the week (1.277 if i don't get too excited)

I searched for UTAC in the thread but it seems it was not used before. What do you mean by UTAC?

hi Goods,

Thank you for these.
I love the wckyoff .
this is what I studied and take profit.

The blue line was what my plan and the actual look similar.

my current set up GJ

the blue dot line it TP,TP and TP

My UJ set up today with concept wckoff ,gap.
It really work for me.

my current setup UJ. Wckoff and KengLeobard Void System .

wckoff method and my KengLeobard Void System = good job.

EJ, GU and UJ shall be as pics since the coming Monday.

Hello KengLeobard,

Interesting charts, but they are not all clear to me. It is a pity sometimes the screenshots do not display dates.
Are you willing to elaborate on what the KengLeobard Void System is about?
I see you are using M1 charts. Is the M1 the only timeframe you use?
I am studying Wyckoff for about half a year now. Could you tell what you see in the attached charts of your post regarding Wyckoff?
Also, what is you definition of a M1 gap?

Thanks,

FP