Riding the Wyckoff Wave

[DbPhoenix]

I should also point out, given that this is the first day of trading after the initiation of the thread, that W advocated entering on swings rather than on breakouts. So, for example, one would look to enter somewhere in the trough of the retest after a selling climax.

[gassah]

There are examples of him buying breakouts in the course but it wasn't his first choice.

nic

[DbPhoenix]

I don't recall where I read this, but at some point he said that the best entry -- though the most aggressive -- was the climax; second best, the test; worst, the breakout above the intervening swing point, largely because everybody on the planet is looking at that point.

[DbPhoenix]

On the one hand, it's awfully arrogant of anyone to say Well, Wyckoff would have done this or Wyckoff would have done that. But it is fun (if you don't get out much) to speculate about what he might have done.

For example, with all these index minis, I suspect he wouldn't even have bothered to trade any of this sideways movement since mid-January. If he did, his stop would probably have to be above 1900:NQ. Whether he would have agreed with my suggestion for today's short is anybody's guess.

[cantana]

	Quote:	DbPhoenix
	I don't recall where I read this, but at some point he said that the best entry -- though the most aggressive -- was the climax; second best, the test; worst, the breakout above the intervening swing point, largely because everybody on the planet is looking at that point.

I wonder if, considering an entry during a climax, he would hold on into a retest? Or maybe he was planing to staying in only as long as it turned out to be a V bottom?
I don't see how entering at the climax would be advantages otherwise.

I'm just thinking about the “poke” effect on a W

[DbPhoenix]

	Quote:	cantana
	I wonder if, considering an entry during a climax, he would hold on into a retest? Or maybe he was planing to staying in only as long as it turned out to be a V bottom? I don't see how entering at the climax would be advantages otherwise. I'm just thinking about the “poke” effect on a W

Well, assuming that he was better at all this, he'd also be better about distinguishing between a "preliminary" selling climax and the real thing. In any case, the stop is below the climax swing. If the test were a lower low, I assume he'd stop himself out and re-enter. To do otherwise might be to assume that one has information that one doesn't really have but is actually hoping, instead.

The advantage, of course, is getting in at a lower price, but there is also the advantage of having all the short-coverers propel you into a profit position fairly quickly, along with all those who were supporting the reversal in the first place.

[treadstone]

Wouldn't it be great to bring Wyckoff back, he'd probably tune in within around 10 minutes and start making money out of the e mini's.

[tune]

Was there any form of TICK in those days?

[DbPhoenix]

	Quote:	tune
	Was there any form of TICK in those days?

If you mean literally, no. But then there were only a fraction of the listings then that there are today. So given that he was a tape reader, I suspect that he had a subconscious "feel" for how many issues were rising and how many falling. He also incorporated activity and pace, which mattered as much then as it does now. It wasn't that difficult to feel when the tape was jumping to life, just as it does today after Fed announcements.

[DbPhoenix]

	Quote:	treadstone
	Wouldn't it be great to bring Wyckoff back, he'd probably tune in within around 10 minutes and start making money out of the e mini's.

I suspect he'd wet himself over RT streaming charts.