With December comes ... Phase B;
at least I hope it does... everything looks that way. Classic Wyckoff Distribution... looks like a textbook example until now... let's hope it continues like that.
In the Wyckoff Method, Phase B represents the range-bound period after accumulation (Phase A) and before the price breaks out. Here's how to identify signals confirming XAU/USD is in Phase B:
Key Signals for Confirming Phase B:
but, please also consider:
Good Luck to all!
at least I hope it does... everything looks that way. Classic Wyckoff Distribution... looks like a textbook example until now... let's hope it continues like that.
In the Wyckoff Method, Phase B represents the range-bound period after accumulation (Phase A) and before the price breaks out. Here's how to identify signals confirming XAU/USD is in Phase B:
Key Signals for Confirming Phase B:
- Price Consolidation: Expect the price to trade within a well-defined range, characterized by sideways movement with lower volatility. During this phase, both buyers and sellers test their positions.
- Volume Analysis: Volume behavior is critical. Look for higher volume on down moves and lower volume on up moves, suggesting selling pressure during corrections and weaker buying interest during rallies. This typically signals distribution or accumulation.
- Testing Support/Resistance Zones: XAU/USD will often test key support and resistance levels, creating higher lows or lower highs, signaling potential re-accumulation or re-distribution. Watch for failure to break these levels decisively.
- Range-bound Patterns: Watch for rectangular price ranges (consolidation) or broadening formations. A breakout above the top range suggests the transition to Phase C (mark-up), while failure to break down below suggests Phase A continuation.
- Wyckoff Climax: Near the end of Phase B, a final climax can occur, where volume spikes and a sharp reversal signal the market’s readiness to exit the range.
but, please also consider:
- Market Sentiment: Understand overall market sentiment, as external factors like interest rates or geopolitical events can influence XAU/USD.
- Indicators: Utilize momentum indicators (e.g., RSI, MACD) to confirm overbought or oversold conditions in Phase B.
Good Luck to all!
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.
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.