Wyckoff Price and Market Structures

Wyckoff Price and Market Structures Distribution Characteristics

within structure

sym.

description

increasing prices PSY Preliminary Supply establishes BC Buying Climax trading range AR Automatic Reaction @ top of range ST Secondary Test above upper range UT Up Thrust @ low of range SOW Sign of Weakness @ low of range LPSY Last Point of Supply

bar spread close in bar Widening Wide Ave/Wide Narrowing Narrowing Ave/Wide Narrowing

Lower Upper Lower Mid-Lower n/a Lower Lower

volume Increasing Climatic/ High Light Decreasing Light Light Ave-Increasing

Phase A: (thru preliminary Supply PSY to Secondary Test ST) Characteristics- Supply is Dominate; Trend is Up. Typical Price Bar Action- PSY: price spread and volume widen, especially on down bars. - BC: wide spread bar on high volume; close near top. - AR: down bar on light volume, buying pressure exhausted. Phase B: (from Secondary Test ST thru Signs of Weakness SOW; Trendless. Characteristics- Supply = Demand; Trading Range between ST and AR levels; feeble rallys. Typical Price Bar Action- ST: lighter volume, narrow spread; no demand. - SOW: light volume at bottom of range, increasing volume at top; spread varies. Phase C: (from Up Thrust UT and Signs of Weakness SOW Characteristics- Testing Process of, or past, Top Range. Typical Price Bar Action- UT: wider spread on moderate / light volume, weak close. Phase D: (from Sign of Weakness SOW to Last Point of Supply LPSY Characteristics- Signs of Weakness confirmed; Selling Action coming into market. Typical Price Bar Action- LPSY: volume expands, Spreads widen, Weak Closes. - Fall thru Ice: price “Falls thru the Ice” (support) on gap or wide down bar, strong volume. Phase E: (from Last Point of Supply LPSY to Preliminary Supply PSY) Characteristics- Price leaves Trading Range; Supply is Dominate; Trend is Down. Typical Price Bar Action- BU: Back Up to Ice, price advance to ice support on light volume. - Mark Down: Price swings with lower Highs (light volume) and lower Lows (strong volume).

Accumulation Characteristics

within structure

sym.

description

declining prices establishes

PS SC AR ST SPR SOS LPS

Preliminary Support Selling Climax Automatic Rally Secondary Test Spring / Shakeout Sign of Strength Last Point of Support

trading range @ bottom of range below lower range @ top of range @ high of range

bar spread close in bar Widening Wide Ave/Wide Narrowing Increasing Ave/Wide Narrowing

Upper Lower Upper Mid-Upper n/a Upper Upper

volume Increasing Climatic/ High Light Decreasing Light Increasing Ave-Increasing

Phase A: (thru preliminary Support PS to Secondary Test ST) Characteristics- Supply is Dominate; Trend is Down. Typical Price Bar Action- PS: price spread and volume widen. - SC: wide spread bar on high volume. - AR: up bar on light volume, selling pressure exhausted; watch for short covering. Phase B: (from Automatic Rally AR thru Signs of Strength SOS; Trendless) Characteristics- Supply = Demand; Trading Range between ST and AR levels. Typical Price Bar Action- ST: light volume, narrow range; no supply. - SOS: increasing volume at top of range, light volume at bottom; spread varies. Phase C: (from Shakeout / Spring SPR to Signs of Strength SOS) Characteristics- Testing Process of, or past, Bottom Range. Typical Price Bar Action- SPR: Wider spread on moderate / light volume, strong close. Phase D: (from Sign of Strength SOS to Last Point of Support LPS Characteristics- Signs of Strength confirmed; Buying action coming into market. Typical Price Bar Action- LPS: Volume expands, Spreads widen, Strong Closes. - JAC: Price “Jumps Across the Creek” on Gap or Wide up bar, strong volume. Phase E: (from Last Point of Supply LPS to Preliminary Supply PSY) Characteristics- Price leaves Trading Range; Demand is Dominate; Trend is Up. Typical Price Bar Action- BU: Back Up to Creek, price retreat to creek resistance on light volume. - Mark Up: Price swings with higher Highs (strong volume) and higher Lows (lighter volume).