June 2020

And if the price breaks local levels of support and resistance (shown in red on the distribution scheme), then the continuation of the trend does not occur. And at the beginning of August, there was a change in the interaction of prices and volumes (цена растет – объем умчанияться, цена регистрация – обем растет). This is a sign of a bearish market and an argument in favor of the fact that the Kompozitny operator conducted the distribution of shares in the region of 190 dollars, bought by them earlier at a lower price. He sold them at a profit, using an influx of retail buyers attracted by the news that Apple Inc became the first company to reach a capitalization of 3 trillion. The last cycle of movement of prices is defined by Vaikoffa as a discount. At this stage, the offer dominates, and the price goes down practically without stopping.

Distribution

Sometimes the market can move above the level of resistance due to the culmination of purchasing power, which will result in a secondary test in the form of a vertical spring (from English upthrust, sokr. UT). The subsequent strong upward movement causes a chain reaction due to the absorption of excess demand by market makers. In other words, the composite person begins to distribute his assets among late buyers and the second test (ST) occurs when the market is in the area of the buying climate, basically forming a lower maximum. In phase D, the trader receives more evidence about the upcoming direction of the market movement, and also has the opportunity to open the first short position or add to the already existing one. The best opportunities arise in points 13, 15, and 17, indicated on the # 2 and # 3 diagrams.

(1) Ускорение роста цены, attracting FOMO buyers. The price is adjusted to approximately 50% from the rise from the minimum of April 19 to the maximum of April 29, to then exit the wide bullish gap from the accumulation stage. (3) Secondary Test, or spring – both terms are used in different sources, which, in essence, means a false breakdown of the previous minimum. At this stage, the so-called “Jump Over Creek” occurs, where the river – Wyckoff method This is a non-continuous line of resistance in the area of the upper border of the accumulation stage (shown by a curved line in the diagram above).

• Point 11, in both distribution schemes, gives us the last opportunity to cover the longs that were open until then and offers the first opportunity to initiate a short position.
• The original training course was developed by students, among whom Robert Evans especially stands out.
• As already mentioned, there are two models of distribution according to Vaikoffa method.
• On March 21, a large bear candle with large volumes appears on the chart.
• In some cases, the market demonstrates only one last bullish trap after the period of consolidation.
• (1).
• It is precisely in this phase that the best opportunities arise to add to an already open long position, before the price leaves the zone of consolidation.

The following phase of price movement is called the Vaikoff method of changing tendencies, in which the value of the currency goes beyond the trading range, heading towards new maxima. At this stage, it is proposed to work exclusively on the trend, to use returns to search for purchase zones. At this stage, we will either enter the market or add to already open positions. The trading cycle is accompanied by growing volumes and new local maxima. Accumulation of funds in the previous stage has ended and a trend movement has appeared.

Торговля по байкофу

In this phase, the offer is finally running out and there are conditions for entering the long position with a positive risk-to-profit ratio. "Составной человек" distributes acquired assets, selling profitable positions to participants who entered the market at the last stage. The cycle is characterized by lateral movement of prices with growing volumes. Retail traders and investors close positions by stops, accelerating the falling tendencies.

Wyckoff Method Trading strategy

In each of points 8, 10, 12 and 14 (см. рис. 1) we can enter a long position, estimating the risk of profit before entry. In phase D, an upward movement is born, because Professional Money, after the accumulation of assets, begins to support the upward movement of prices. It is precisely in this phase that the best opportunities arise to add to an already open long position, before the price leaves the zone of consolidation. Шейкаут в пункте 8 (см. рис. 1) is a place to enter the long position. The secondary test in point 10 (см. рис. 1) is a more conservative entry, because this retracement at a low volume and a stop at the level of point 8 gives more significant evidence of market strength and greater confidence in the positive outcome of the transaction.

Как начать учение участние продукты по методу Вайкоффа?

This phase is a typical period of asset accumulation, which is also called spring. Often it is the last bear trap before the market starts to demonstrate higher minimums. During the action of the phase, the composite person provides a small offer, and in fact, those who were supposed to sell their assets already did so. During the period of action of phase B, multiple secondary tests (ST) may occur.

Vertical volumes: Vaikoff and VSA methods

Phase B (see Fig. 1). The assumptions about the further direction of the market at this stage are very contradictory and elusive, however, even in this phase, several useful concepts can be found. The Law of Demand and Proposals states that if the demand exceeds the proposal, the price will move up, and vice versa. Vaikoff's method helps traders to make logical and weighted decisions, as it represents specific rules and strategies.

• When comparing the spread, volume, speed and price during a rally and during reactions within the trading range itself, you can get additional hints of the strength or weakness of a specific asset.
• You bear full responsibility for the trade decisions made and the result obtained during the work.
• In this case, trading volume and market volatility are, as a rule, lower than usual.
• Also, these signs of weakness can pierce the support formed in phase B.
• The book offers a modern adaptation of spread and volume analysis, in which Richard Wyckoff's tape reading methods are changed to match today's volatile markets.

Кроме того, at any moment you can activate a Free Trial — 14 days of free access to the fully functional platform, which will help you evaluate the advantages of senior tariffs and make a well-considered purchase decision. It is not possible to create a robot that will trade according to the Wyckoff method, as it requires human intervention and evaluation. The method requires serious experience in volume analysis, which can be difficult for beginners.