Wyckoff Method: Basic Principles in Brief
The Wyckoff method helps identify the actions of major players through price and volume analysis. It focuses on the phases of accumulation (quiet buying) and distribution (silent selling) to predict future price movements.
3 Laws of Wyckoff:
• Supply and demand: Price increases when demand > supply.
• Cause and effect: The longer the consolidation, the greater the breakout.
• Effort versus result: If volume is high but price does not move, a reversal may occur.
5-Step Strategy:
1. Define the market trend (up/down/sideways).
2. Choose strong stocks in uptrends, weak stocks in downtrends.
3. Use the consolidation range (P&F charts) to set price targets.
4. Confirm if the stock is ready to move (breakout/breakdown).
5. Time entries with overall market bounce.
Objective: Follow smart money and enter before the real movement begins.#StrategicTrading