Ask Any Wyckoff-Related Question

[jasont]

Db that section in the pdf you provided is great. Thank you very much for offering that as reference. In this section he mentions "after a sale at a certain price, you enter the next sale in the same column if there is blank space...". Does that mean Wyckoff combined orders at the same price or did he track individual orders? The least amount of shares traded in a transaction was 100, did that mean he didn't bother with smaller transactions or that less than 100 in a single trade wasn't done?

The reason I ask is that he seemed to look for the big money and where it was headed and tag along. In my opinion that is the ideal way for a smaller trader to trade. When I mentioned tracking the orders I meant ones that had been actually traded which were shown in the T&S. I have an image below from Monday 26th May.

It turns out to be a good example because typically the big traders won't waste their time on a half day of trading especially when the stocks are not trading. The T&S on the right only shows the transactions that have a volume of 100 or more. You can see the smaller traders get left out of the equation making the big players the ones to keep an eye on for possible weakness at wave tops or strength at wave bottoms.

I think this is on the right path as to what Wyckoff was talking about in tracking the volume on the tape but I have only a minor experience with it so far. Please let me know if this is not in the right direction or getting too far away from the thread topic.

Regards,

Jay

[DbPhoenix]

They are combined. However, it is important not to get too bogged down in "what Wyckoff did" or "what Wyckoff would do". No trader who has been in the business for decades trades the same way he did twenty or thirty years earlier, and he will not likely be trading the same way twenty or thirty years from now. Or even next week. Anything and everything written represents a point in time, and change is more likely to be a factor than not.

Therefore, focus on principles and concepts, not on details. Among the more important ideas here is to avoid the attempt to trade chop and to initiate trades only when it looks as though price is actually going somewhere. If you're interested in this particular approach, I suggest you pump gassah in his P&F thread.

[jasont]

Thanks for the great advice Db. I can see what you mean about avoiding the chop and only trade the decent sized moves.

[zdo]

Did Wyckoff talk any about the 'auction' dynamics inside chop?

[Yquem]

Hello there, this is my maiden post. Would like to first thank the moderators et. al. for sharing. Found this website when I was trying to look up materials on tape reading.

Would like to ask a question on Wyckoff too - Wyckoff and Livermore are both great masters of the tape. Is it possible to trade "on the tape" in the forex markets?

I'm asking this because I have no exposure to forex at all, and can't trade stocks due to work commitment (I'm not a professional trader). Was thinking about the difference in methodology/strategy between the 2.

Would appreciate any comment. Thanks!

[DbPhoenix]

I don't trade forex, but perhaps nic can help you.

[gassah]

I only trade FX EOD and it doesn't use volume so I don't think it fits the "tape reading" definition. I'm comfortable with EOD and the tic counts but my track record is only a few months old.

[Kiwi]

Yquem,

Never forget that the next timezone's futures markets and stock markets will be available when you get home from work. So in the US you can trade asia (spi, nk, kospi, stw, hsi).

[Yquem]

Hey Kiwi, u're right there.

I'm in Asia though, so will have to trade the US instead.

home market registered only 1.2bn in trading volume yest., so i guess its pretty tame as compared to the US.

thanks DbPheonix. You trade stocks? With Kiwi's suggestion, perhaps will just focus on one thing at a time.

ok gassah. the platform i'm using does not have time and sales data, not even for stocks. thanks for sharing, am pretty new too. =D

[Kiwi]

If you find the US too late (i'm in Aus) then you might also look at europe.

The bund (gbl) and eurostoxx (estx50 a dji equivalent) are nicely behaved futures contracts. The dax is bigger and more volatile.