[DbPhoenix]

For those who are interested, I wrapped up the canaries thread here.

[cowseathay]

I thought today was a great day to see many of the Wyckoff concepts in action in a very clear way. I'm attaching a 5s and 1M chart of the NQ from this morning pointing out a few key clues to the beginning of the giant reversal that occurred. And all of these clues were pointed out in real time in chat by Db, atto and others.

You can see that with each potential selling climax price drops sharply with a dramatic increase in volume. The final climax that occurred didn't seem to have any big volume bar, but a lot of volume occurred in a small period of time, which you may not pick up if you were following bar by bar. Also, note that the final climaxes and shakeout occurred at support (or right below), which signals a much higher chance of a reversal than if they occurred in the middle of nowhere. You can also see lower volume on the test, and then large volume during the shakeout followed by rapid price reversal. The job of a shakeout is to get rid of "weak hands" so that a new move could be started. And as you can see that job was accomplished with great success.






If I've made any mistakes please let me know and I'll correct it.

[DbPhoenix]

Would you mind posting these in the Trading The Wyckoff Way thread as well? A simple copy-and-paste will do (if I do it, my name will be on it). I have some comments to make about S/R, but I'd rather make them there, given the floundering I see with regard to several other approaches, and the possibility that the simplicity of this might be more appealing to some than what they're currently bogged down in.

[atto]

Yep. Price gave several scaleout opportunities for the short. And on the long, there were several decent spots to add or initiate a position if you didn't catch the bottom real time (I didn't).

I got in at the springboard shortly after the bottom. Volume spiked as price broke the 08 area again (longer term zone), and then entered a period of sideways congestion as volume tailed off. On top of that, you have the bounce off of S to the lows, and a series of hh's and hl's (a trend up).

The circled areas are places that I'd enter. Logical stops on both are at 07.00-07.25.

[cowseathay]

[quote]

Would you mind posting these in the Trading The Wyckoff Way thread as well? A simple copy-and-paste will do (if I do it, my name will be on it). I have some comments to make about S/R, but I'd rather make them there, given the floundering I see with regard to several other approaches, and the possibility that the simplicity of this might be more appealing to some than what they're currently bogged down in.

Sure, no problem. Done.

[DbPhoenix]

Maybe you could do the same thing, atto. Think of it as missionary work.

[atto]

Sure thing. Cows, no one besides us who have access to Chat Junkies can see that attachment, I believe. Might want to reupload them.

[DbPhoenix]

Originally Posted by atto »

Sure thing. Cows, no one besides us who have access to Chat Junkies can see that attachment, I believe. Might want to reupload them.

That's true. They can't.