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Precisely what I've shifted my thought focus to. In fact, much of the last 2 months I've been focused primarily on 60min creek jumps. Anything less than that is just full of so much noise a lot of the time.
Can you help answer these questions from other members on NexusFi?
OK, another chart .... SFLY. Would like to get your thoughts.
You'll have to bare with me guys because I'm normally a candlestick kind of trader, which is probably hindering how I see some of the principles of Wyckoff on a chart. Alas, I will post this one using bars.
- There have been three selling climaxes since the end of November as this stock has formed a point of control in the price range of 21.34 to 26.94
- It has made two higher lows since the bottom at 23.23 and 25.71
- The Creek jump was on breakout style volume and has since accumulated on mostly narrow spread bars and appears to be re-testing the Creek for support
- As far as background strength or weakness this stock on a weekly chart appears to still be in a down trend with the top trend line being in the neighborhood of 33.45
Candlesticks are good. Although they were invented several hundred years before Wyckoff, he taught using bar charts and PnF charts. So most Wyckoff students use bar charts, but there are some who use candlesticks.
Learning to draw proper lines takes some experience. However, we draw the horizontal trading ranges in two ways. One, by vertical demand or supply bars and/or, two, clustered areas of support and resistance. In theory, these lines are really squiggly lines, but in practicality, we draw them as straight lines across these areas of support and resistance.
In your chart, I agree with the lines you drew. Good job!
Gary
There is a substantial risk of loss in trading commodity futures and options. Past performance is not indicative of future results. The opinions expressed here are those of Gary Fullett, and are not to be taken as a recommendation to buy or sell commodity futures or options. This is for educational purposes only.
Apparently it does take some practice, because some of the Wyckoff Phases on the chart can be easily mistaken as one of my previous attempts have shown. All charts have their own idiosyncrasies and need to be analyzed carefully. However, I don't seem many charts posted in forums identifying these points. Are they really necessary to identify? Is this over analyzing the chart? Is this type of analysis only for academic training and not used during live trades?
Reference:
Hank Pruden and Max von Lichtenstein, "Wyckoff Schematics: Visual templates for market timing decisions", MTA Journal, Issue 55, March 2006
I did mention that I have a collection of Wyckoff info that I'm studying and for those who are curious, here is one of Wyckoff's original charts displayed in Amibroker.