How to Make Money From "Wyckoff Manipulation"
Updated
https://www.tradingview.com/x/q64XYunJ/
Priority #1: Check the Money Flow Index (MFI) on the 1-Hour chart. And be flexible on bedtime.
The market breathes in and out everyday. Some people introduce terms like "Wyckoff distribution" and "Wyckoff accumulation." Maybe Wyckoff patterns are just market breathing patterns.
Institutions have a tricky time trying to buy or sell while the market is going up and down everyday with retail traders.
They're experts on how to do it while making money.
Make MFI a higher priority than Bollinger Bands, drawing triangles, wedges, etc. All of those patterns are helpful for the same reason. They point out areas of contraction = areas of reduced volatility. When bands squeeze, volatility reduces. When bars get wedged into triangles, volatility reduces. Same thing.
But the MFI shows us the reason why volatility reduces: the money flow is too high (diminishing returns) or too low (diminishing risk) when adjusted for historical volume.
And with that information, we can go long or short everyday with great accuracy in "Wyckoff pattern" markets. We can act on the information that the professionals are acting on.
Priority #1: Check the Money Flow Index (MFI) on the 1-Hour chart. And be flexible on bedtime.
The market breathes in and out everyday. Some people introduce terms like "Wyckoff distribution" and "Wyckoff accumulation." Maybe Wyckoff patterns are just market breathing patterns.
Institutions have a tricky time trying to buy or sell while the market is going up and down everyday with retail traders.
They're experts on how to do it while making money.
Make MFI a higher priority than Bollinger Bands, drawing triangles, wedges, etc. All of those patterns are helpful for the same reason. They point out areas of contraction = areas of reduced volatility. When bands squeeze, volatility reduces. When bars get wedged into triangles, volatility reduces. Same thing.
But the MFI shows us the reason why volatility reduces: the money flow is too high (diminishing returns) or too low (diminishing risk) when adjusted for historical volume.
And with that information, we can go long or short everyday with great accuracy in "Wyckoff pattern" markets. We can act on the information that the professionals are acting on.
Note
https://www.tradingview.com/x/KmdmSgC1/Retail is piling into Ethereum today at $2700. Yet we are at the top of the MFI chart, which is exactly the wrong place to go long.
It's the place with the most risk and the least returns. And to make it worse, it's the place that the institutions target for shorting. It's like swimming with the sharks with bloody meat in the water.
And the sharks are getting less generous. They're getting stingy. Only 100 million ETH.USDT was bought this afternoon on Binance.
YouTube is all confused: the bull market is back!
The sharks will smell and sell...probably one night when we're all sleeping.
When we fall to the bottom of the MFI chart, a lot of people will be taken by surprise. This may be the blow to mass morale that takes us below $2000 again. Huge falls always take place at the top of the MFI chart. Not at the bottom.
That's what happened on March 19th. We fell from the top of the MFI chart to the bottom.
When that happens, go long. What a paradox! It's called being "smart money." But don't forget we are in a bear market.
Note
[url= tradingview.com/x/9z9SpnBy] The 1-hour and 2-hour MFI seem inconclusive, so I looked at the 30 minute.
The base on the 30-minute MFI chart looks faulty to me.
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