The Wyckoff method can be adapted to 15-minute charts (intraday) for short-term trading, although in this timeframe movements are faster and noisier than in daily or weekly frames. The key is to focus on clear accumulation or distribution patterns within smaller ranges, interpret price action and volume accurately, and act with discipline. Below, I detail a practical strategy to apply Wyckoff on a 15-minute chart: Wyckoff Strategy on 15-Minute Chart Step 1: Identify the General Context
Goal: Understand the prior trend and the possible ongoing Wyckoff cycle.
How to do it:
Look at a higher timeframe (1 hour or 4 hours) to determine the dominant trend (bullish, bearish, or sideways).
In 15 minutes, look for consolidation ranges after impulsive moves. For example:
After a strong rise, a range can be distribution.
After a drop, a range can be accumulation.
Observe the volume: Does it dry up on drops (lack of supply)? Does it increase on bounces (demand)?
Example: If there is an uptrend in 1 hour and in 15 minutes the price enters a range between $100 and $102 after an impulse, it could be a reacumulation (accumulation within an uptrend).
Step 2: Detect the Range and Key Events
Goal: Identify specific Wyckoff patterns on the 15-minute chart.
How to do it:
Accumulation: Look for a sideways range with:
Spring: A drop below support (e.g. $99.80) followed by a quick recovery to the range with increasing volume.
Shakeout: A sharp downward move to take out stops, followed by a bounce.
Sign of Strength (SOS): A breakout of the range (e.g. $102) with high volume.
Distribution: Look for:
Upthrust (UT): A false breakout above resistance (e.g. $102.50) followed by a quick drop.
Sign of Weakness (SOW): A bearish breakout of support with volume.
In 15 minutes, these events can occur in 2-5 candles, so keep an eye on volume to validate.
Example: The price drops to $99.70 (spring), rises to $101 with high volume, and then breaks $102 (SOS): buy signal.
Step 3: Define the Entry Point
Goal: Enter with low risk after confirmation.
How to do it:
Buy: Enter at the Last Point of Support (LPS), a pullback to the upper edge of the range after a SOS. For example, if the range is $100-$102 and breaks to $102.50, wait for a pullback to $102 with low volume (little supply).
Sale: Enter at the Last Point of Supply (LPSY), a bounce to resistance after a UT or SOW. Example: after falling from $102 to $99, a bounce to $100 with low volume is a sale.
Stop-loss:
Buys: Below support or the spring (e.g. $99.50).
Sales: Above resistance or the UT (e.g. $102.70).
Example: After a SOS at $102.50, the price retraces to $102 with decreasing volume; you enter long with a stop at $99.50.
Step 4: Project Goals
Goal: Estimate the expected movement in this short timeframe.
How to do it:
Measure the range's amplitude (cause). In 15 minutes, ranges are usually small (e.g. $2-$5 in stocks or 20-50 pips in forex).
Project a movement equal to or up to 2x the range's amplitude from the breakout point. Example: A range of $100-$102 (2 points) suggests a target of $104-$106.
Also consider nearby support/resistance levels on the 15-minute or 1-hour chart.
Example: After breaking $102, you aim for $104 (1x the range) or $106 (2x) if volume supports the strength.
Step 5: Manage the Position
Goal: Protect profits and limit losses in a fast-paced environment.
How to do it:
Use a trailing stop adjusted (e.g. 1-2 candles back) because movements in 15 minutes can reverse quickly.
Exit on exhaustion signals:
Markup: A high volume candle with little advance (climax).
Markdown: A bounce with low volume after a drop.
Take partial profits (50% of the position) at the first target and let the rest run if there is strength.
Example: If the price rises from $102 to $104, take half of the profits and raise the stop to $102 (breakeven).
Practical Example in 15 Minutes
Imagine you are trading the EUR/USD pair:
After a drop, the price forms a range between 1.0800 and 1.0820 in 15 minutes, with decreasing volume on drops: accumulation.
A candle drops to 1.0795 (spring) and rises to 1.0815 with high volume, then breaks 1.0820 (SOS) to 1.0830.
Retrace to 1.0820 with low volume (LPS): you enter long at 1.0820, stop at 1.0790.
Goal: 1.0840-1.0860 (20 pip range projects 20-40 pips).
The price reaches 1.0840; you take partial profits and raise the stop to 1.0820.
Tips for 15 Minutes
Volume: In forex, use tick volume if your platform allows it, as there is no real centralized volume.
Confirmation: Wyckoff events in 15 minutes are more subtle; wait at least 2-3 candles to validate a SOS or SOW.
Noise: Filter false breakouts with support/resistance levels from larger timeframes.
Risk Management: Use a risk per trade of 1-2% of capital, as the stop-loss will be tighter.
This strategy is ideal for intraday traders with experience in price action. If you want to apply it to a specific asset (stocks, crypto, forex) or need to adjust something, let me know!
Notice: Grok is not a financial advisor; please consult one. Do not share information that could identify you.
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