Riding the Wyckoff Wave

[gassah]

	Quote:	zeon
	I didn't think Wyckoff had targets are made predictions as to how far a move could stretch or where his exits might be. I couldn't find any references to 'projecting' targets in this thread nor in the excellent PDF files dbphoenix provided. [/i]

He used point and figure charts to project. I'll quote some this weekend.

[zeon]

	Quote:	gassah
	He used point and figure charts to project. I'll quote some this weekend.

Good idea. I wonder why nobody who's trading is based on the principles laid out by Wyckoff is using these 'projection methods'. Although I don't find much references to it further in the book I'm reading, it still surprised me because I think he didn't do much "predicting". But if your projection targets than I guess that's exactly what you're doing.

[gassah]

Here's a little.

http://www.hankpruden.com/dow14400.html

[zeon]

	Quote:	gassah
	Here's a little. http://www.hankpruden.com/dow14400.html

Wow, that 14400 projection was spot on. If you have more where that came from, keep it coming. It's hard to find good information on the web these days. Most trading related stuff is about spread betting and indicators and system sellers crap.

[zeon]

	Quote:	DbPhoenix
	The decline in the number of new highs, however, does suggest that the market is being driven higher by large-cap stocks, and the advance may not be a broad one. The story's pretty much the same with the NYSE.

There was an article in TheStreet that mentioned a similar thing: small-caps aren't participating. Next to that, they note that the volume has been below average since the January lows...

[zeon]

Recognizing it in real time is one thing, actually trading yet another...

[gassah]

W:

"The most valuable feature of Figure Charts, however, is their horizontal formations, which, in many cases, forecast the approximate number of points a stock, or a group, or the average should move.

It is in these horizontal formations, or congestion areas, on the figure chart that we find the greatest aid:

1. in determining how far a stock should go
2. when it meets opposition, viz., when it has about reached the end of its move; and with the help of the vertical chart
3. determining the trend, and
4. when a stock is on the springboard"

[zeon]

	Quote:	gassah
	W: "The most valuable feature of Figure Charts, however, is their horizontal formations, which, in many cases, forecast the approximate number of points a stock, or a group, or the average should move."

Yes... but where can I read how the exact calculation is made?

[BlowFish]

http://www.amazon.com/Definitive-Gui.../dp/1897597630 is my favourite book on P&F fwiw. It's pretty comprehensive.

[gassah]

The .pdf will get you started. There's too much material to post here. Stockcharts.com does Wyckoff-style point and figure but you need to be careful with the settings:

http://tinyurl.com/5k5hej