Wyckoff Re-Accumulation
Updated
2d chart:
I have a 2d chart on the right where I believe we have a Wyckoff re-accumulation, it´s finishing the BU and looks like it wants to break to the upside for a rally. In the 2d chart, look at how price is slowly chopping away the supply at the resistance level, any supply that appears after hitting the resistance only creates a HL. Additionally, the volume signature since March 2022 has increased, every time that supply has increased (in the volume signature) it has only created a HL. The highest volume supply signature in the 2d chart could not break the support of the trading range, and price has not bothered trading at this level. Price still needs to overcome the supply candlestick that brought price to the LPS, this is the most important candle that price needs to overcome to rally. The highest volume signature is associated to a demand candle (look at the green arrow). It´s a volume demand spike, and like all demand volume spikes we see demand increasing but there is also hidden supply. Nonetheless, this only tell us that supply still is present, but what is this supply creating? Again, it is only creating HLs.
4h chart:
When we zoom-in to the 4h chart we can see a triangle formation, and what I believe to be an ABCDE formation. All the important volume bars are associated to buying, I did not buy at these levels, but I believe the market has. Should this formation fail and not rally from here would bring price to lower levels and jeopardize the macro level of a Wyckoff re-accumulation.
I have a 2d chart on the right where I believe we have a Wyckoff re-accumulation, it´s finishing the BU and looks like it wants to break to the upside for a rally. In the 2d chart, look at how price is slowly chopping away the supply at the resistance level, any supply that appears after hitting the resistance only creates a HL. Additionally, the volume signature since March 2022 has increased, every time that supply has increased (in the volume signature) it has only created a HL. The highest volume supply signature in the 2d chart could not break the support of the trading range, and price has not bothered trading at this level. Price still needs to overcome the supply candlestick that brought price to the LPS, this is the most important candle that price needs to overcome to rally. The highest volume signature is associated to a demand candle (look at the green arrow). It´s a volume demand spike, and like all demand volume spikes we see demand increasing but there is also hidden supply. Nonetheless, this only tell us that supply still is present, but what is this supply creating? Again, it is only creating HLs.
4h chart:
When we zoom-in to the 4h chart we can see a triangle formation, and what I believe to be an ABCDE formation. All the important volume bars are associated to buying, I did not buy at these levels, but I believe the market has. Should this formation fail and not rally from here would bring price to lower levels and jeopardize the macro level of a Wyckoff re-accumulation.
Trade closed: target reached
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