Riding the Wyckoff Wave

[DbPhoenix]

One who understands how to interpret charts correctly can usually decide whether the whole market, or any single stock, or group of stocks, is most likely to advance, decline or stand still. Every market and every stock is always in a bullish, bearisn or neutral position. The person who can determine, with a high percentage of accuracy, the position in which the market, or a group, or a certain stock stands, holds the key to success in trading and investing.

Richard Wyckoff

[DbPhoenix]

For those who follow the ES, note that it never even made it to the previous day's midpoint, much less establish a trend. The fact that it could not do so suggests weakness.

The red lines are the midpoints of the respective moves. The dotted line is both a support and a resistance line, depending on where price is in relation to it during this period. The black line is, of course, the midpoint of the post 4/18 trading range.

[treadstone]

Very good series of posts there, Db. Thank you.

[Bearbull]

Zeon,
Hope you have gained more insight now , another illustration to reinforce what has been outlined in the posts here,

NQ 1,2 : prices fall with increasing vol. to 1965 , and bounces off the up trendline, you then have the classic VSA signals, downbar on high vol, followed by tests on low vol, Go Long,

NQ 3, however the traders had other ideas, the prices go down on low vol breaking the trendline because the demand is of poor quality. they do not tell you that in the VSA school. Had the market gone up from 1965, they would have come out and claimed how good VSA signals are. Have seen this countless times in their seminars, illustrations of setups which panned out.

My final effort to provide you with the incentive to seek answers from the charts rather than from any outside source.

[Bearbull]

Zeon,
And ofcourse another ideal long setup, hammer, doji, dragonfly right at the support from left 1963, palm tree in florida (VSA mantra), all signs of strength.

They talked about all the 9 principles of signs of strength and weakness in their seminars , however when somebody from the audience asked where is the entry and the stop loss, in short, how do you trade this. The answer was: it is up to the skill of the trader, all the 3 presenters claimed their style of trading would not suit everyone

[zeon]

	Quote:	Bearbull
	Zeon, And ofcourse another ideal long setup, hammer, doji, dragonfly right at the support from left 1963, palm tree in florida (VSA mantra), all signs of strength. They talked about all the 9 principles of signs of strength and weakness in their seminars , however when somebody from the audience asked where is the entry and the stop loss, in short, how do you trade this. The answer was: it is up to the skill of the trader, all the 3 presenters claimed their style of trading would not suit everyone

If those are ideal long setups, than just watch how it goes down to 1952 again.

[Bearbull]

	Quote:	zeon
	If those are ideal long setups, than just watch how it goes down to 1952 again.

Yes I know that, I wanted to bring to your attention the ideal setups as per the VSA tutors, now you can ask them why it did not work that time, same to the candlesticks folks, am sure they will all come up with some justification.

[zeon]

	Quote:	Bearbull
	Yes I know that, I wanted to bring to your attention the ideal setups as per the VSA tutors, now you can ask them why it did not work that time, same to the candlesticks folks, am sure they will all come up with some justification.

VSA, Wyckoff, ... it doesn't matter much. From what I've seen here there's always an excuse at the end of the day why something else happened. Justification seems to happen no matter what approach.

Thanks for your efforts Bearbull. I do appreciate them.

[gassah]

	Quote:	zeon
	Justification seems to happen no matter what approach.

I don't understand why trades that don't work out need justification. Pros don't get it right 40-60% of the time. I'll look over my trades to see if there was a mistake but the vast majority of the time I can't find anything and just move on. They aren't supposed to work out all the time and I don't get the hangup.

[DbPhoenix]

	Quote:	Bearbull
	Yes I know that, I wanted to bring to your attention the ideal setups as per the VSA tutors, now you can ask them why it did not work that time, same to the candlesticks folks, am sure they will all come up with some justification.

The point of my posts was not to bash either VSA or candlesticks but to illustrate certain principles that are key to understanding Wyckoff's approach. And even though there is little in common between VSA and Wyckoff, there are those who, for whatever reason, won't be able to understand either one. They may, however, be able to make a fortune with a MACD/stochastic combo.

Therefore, let's focus on our business and let others go about theirs. This information is here for whoever chooses to benefit from it. Or not. As for zeon, he's already said goodbye twice, so let's not devote any more thread space to that particular arc.