Amazon.comShort
Amazon Wyckoff Market Cycle..!
Updated
Legendary technician Richard Wyckoff wrote about financial markets at the same time as did Charles Dow, Jesse Livermore, and other iconic figures in the early decades of the 20th century. His pioneering approach to technical analysis has survived into the modern era, guiding traders and investors on the best ways to pick winning stocks, the most advantageous times to buy them, and the most effective risk management techniques.
His observations on price action coalesced into the Wyckoff Market Cycle that outlines key elements in trend development, marked by periods of accumulation and distribution. Four distinct phases comprise the cycle: accumulation, markup, distribution, and markdown.
Smart money taking profits and heading to the sidelines.
In turn, this leaves the security in weak hands that are forced to sell when the range fails in a breakdown and new markdown phase. This bearish period generates throwbacks to new resistance that can be used to establish timely short sales.
The slope of the new downtrend measures the markdown phase. This generates its own redistribution segments, where the trend pauses while the security attracts a new set of positions that will eventually get sold. Wyckoff calls steeper bounces within this structure corrections, using the same terminology as the uptrend phase. Markdown finally ends when a broad trading range or base signals the start of a new accumulation phase.
Do you see any similarities between the Amazon chart and the picture shared below it?
Best,
Moshkelgosha
DISCLAIMER
I’m not a certified financial planner/advisor, a certified financial analyst, an economist, a CPA, an accountant, or a lawyer. I’m not a finance professional through formal education. The contents on this site are for informational purposes only and do not constitute financial, accounting, or legal advice. I can’t promise that the information shared on my posts is appropriate for you or anyone else. By using this site, you agree to hold me harmless from any ramifications, financial or otherwise, that occur to you as a result of acting on information found on this site.
His observations on price action coalesced into the Wyckoff Market Cycle that outlines key elements in trend development, marked by periods of accumulation and distribution. Four distinct phases comprise the cycle: accumulation, markup, distribution, and markdown.
Smart money taking profits and heading to the sidelines.
In turn, this leaves the security in weak hands that are forced to sell when the range fails in a breakdown and new markdown phase. This bearish period generates throwbacks to new resistance that can be used to establish timely short sales.
The slope of the new downtrend measures the markdown phase. This generates its own redistribution segments, where the trend pauses while the security attracts a new set of positions that will eventually get sold. Wyckoff calls steeper bounces within this structure corrections, using the same terminology as the uptrend phase. Markdown finally ends when a broad trading range or base signals the start of a new accumulation phase.
Do you see any similarities between the Amazon chart and the picture shared below it?
Best,
Moshkelgosha
DISCLAIMER
I’m not a certified financial planner/advisor, a certified financial analyst, an economist, a CPA, an accountant, or a lawyer. I’m not a finance professional through formal education. The contents on this site are for informational purposes only and do not constitute financial, accounting, or legal advice. I can’t promise that the information shared on my posts is appropriate for you or anyone else. By using this site, you agree to hold me harmless from any ramifications, financial or otherwise, that occur to you as a result of acting on information found on this site.
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