A brief explanation of the Wyckoff Accumulation Schematic on the M15 Chart
What is it?
The Wyckoff accumulation phase is a sideways and range bound period that occurs after a prolonged downtrend. This is the area where larger players try to build positions.
How I personally apply it
I typically perform top-down analysis starting with the Daily chart and working my way down to the 1–5 minute chart, where Wyckoff performs better than charts above the m15. Because posting on the m1 chart is not permitted by tradingview, this example was drawn on the m15.
Wyckoff Accumulation Schematic Definition
PS : Preliminary Supply
SC : Selling Climax
AR : Automatic Reaction
ST : Secondary Test
ST (B) : Secondary Test B
Spring : Huge spike / reaction
test : comes after breaking market structure of ST (B)
SOS : Sign Of Strength
lps : Last Point of Supply
How do we draw the Wyckoff Accumulation Schematic
- Normally, preliminary supply is identified at about 20% of the distance from SC to AR.
- Automatic Reaction is seen as the huge movement back upwards from SC
- Secondary test is often drawn at the 50% Fibonacci line between SC and AR.
- Secondary Test (B) and Spring comes in after price closes below SC
- test comes after the Secondary Test (B) is broken
- Sign Of Strength comes after price closes above the Automatic Reaction
- lps is typically the last point of the accumulation schematic and the buy entry point.
How do we enter a trade?
- Mark out market imbalance zones around the test area
- Buy Limit at the top of the Market Imbalance
- Stop loss below the test
What is it?
The Wyckoff accumulation phase is a sideways and range bound period that occurs after a prolonged downtrend. This is the area where larger players try to build positions.
How I personally apply it
I typically perform top-down analysis starting with the Daily chart and working my way down to the 1–5 minute chart, where Wyckoff performs better than charts above the m15. Because posting on the m1 chart is not permitted by tradingview, this example was drawn on the m15.
Wyckoff Accumulation Schematic Definition
PS : Preliminary Supply
SC : Selling Climax
AR : Automatic Reaction
ST : Secondary Test
ST (B) : Secondary Test B
Spring : Huge spike / reaction
test : comes after breaking market structure of ST (B)
SOS : Sign Of Strength
lps : Last Point of Supply
How do we draw the Wyckoff Accumulation Schematic
- Normally, preliminary supply is identified at about 20% of the distance from SC to AR.
- Automatic Reaction is seen as the huge movement back upwards from SC
- Secondary test is often drawn at the 50% Fibonacci line between SC and AR.
- Secondary Test (B) and Spring comes in after price closes below SC
- test comes after the Secondary Test (B) is broken
- Sign Of Strength comes after price closes above the Automatic Reaction
- lps is typically the last point of the accumulation schematic and the buy entry point.
How do we enter a trade?
- Mark out market imbalance zones around the test area
- Buy Limit at the top of the Market Imbalance
- Stop loss below the test
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.