Wyckoff For Dummies (Including the Author)

5 มี.ค. 2022

Hello,

I am a dummy, so often it takes a long time for things to sink into my thick skull.

Loss of money (or failure to make mony) is often where I learn the best.

Instead of learning from my mistakes I enjoy repeating them many times...just to make sure.

Anyway there are four important points in common price action (FOR TRADERS), and they have acronyms:

PSY - Preliminary Supply
BC - Buying Climax
AR - Automatic Reaction
ST - Secondary Test

Go ahead and look this stuff up and get all geeky with it, but I find waiting for a breakout and understanding these four points is important.

On most charts the pattern is distorted; this chart looks damn near perfect for a Wyckoff. You might need to use longer timeframes to see a Good chart that fits the model.

After the AR when the price comes back up again near the BC; this is the Secondary Test or ST--its time for me to get out because I lose money after that point if I play around. Also can sell half here just in case it rockets up because of reality.

Good luck and regards,
Dummy

5 มี.ค. 2022

บันทึก

Hello,
More thoughts:

PSY: Preliminary supply...this means a huge dump after a breakout and sharp rally. Preliminary supply means this is the first time a huge amount of supply (assets being sold in mass quantity) has occured. The market is flooded with your asset, but this is sucked up and the bulls just hold and buy everything at the PSY!

BC: At the Buying climax (no more money, price too high, momemtum lost baby)... we see a huge sellof where stop losses begin to cause an avalanche that is impossible to stop. The "market becomes one" and its all automated selling.

AR: Similarly uncontrollable is the Automatic Response, if you weren't in already you can get in for a very brief time somewhere around the PSY point and get a quick gain...do not stay in long, take any good gain and get out. Use indicators like the 50MA and the Bollinger Band red line to guage where it may bounce.

ST: Secondary Test is where you sell whether you bought at AR or not...whenever you bought, if you are in profit you need to take profit now or get out complely.

If you get scared at PSY, sell half...to take a hefty profit...if you miscalculate and it goes down, then you have something to buy at a good price loter.

If you are able to sell at BC and buy and AR you can make a killing but be sure and set a damned limit to where you will sell for ST...sell half at least at ST. If its a super duper bull shot then you are still in, and you've taken profit possibly twice on this breakout!

Never do the same thing more than three times. Every time you get greedy and want to repeat 3 or 4 times a puppy dies. Sad thing is you may get lucky on a third try then go for a fourth!

Even if you don't make the perfect highs and lows, if you can profit by seeing the pattern, or get out before a big loss after seeing the pattern then it helps you.

Its not important to catch every high and low perfectly and next to impossible, but the better you can fit into this pattern the more profit you can make.

At any point, holding anything you can buy dips and wait out the pattern...just hold until you see it, if you are watching its unmistakable.

The pattern is a fractal and you can see it at different time frames.

The pattern his skewed, sometimes heavily by manipulation and random activity...the goal is to learn to see it even though it looks like roadkill.

Disclaimer: I only trade crypto.

Regards,
Dummy