What is the Wyckoff Method? #2 Distribution SchematicDistribution Schematic
In essence, the Distribution Schematics works in the opposite way of the Accumulation, but with slightly different terminology.
Wyckoff method distribution schematic
Phase A
The first phase occurs when an established uptrend starts to slow down due to decreasing demand. The Preliminary Supply (PSY) suggests that the selling force is showing up, although still not strong enough to stop the upward movement. The Buying Climax (BC) is then formed by an intense buying activity. This is usually caused by inexperienced traders that buy out of emotions.
Next, the strong move up causes an Automatic Reaction (AR), as the excessive demand is absorbed by the market makers. In other words, the Composite Man starts distributing his holdings to the late buyers. The Secondary Test (ST) occurs when the market revisits the BC region, often forming a lower high.
Phase B
Phase B of a Distribution acts as the consolidation zone (Cause) that precedes a downtrend (Effect). During this phase, the Composite Man gradually sells his assets, absorbing and weakening market demand.
Usually, the upper and lower bands of the trading range are tested multiple times, which may include short-term bear and bull traps. Sometimes, the market will move above the resistance level created by the BC, resulting in an ST that can also be called an Upthrust (UT).
Phase C
In some cases, the market will present one last bull trap after the consolidation period. It’s called UTAD or Upthrust After Distribution. It is, basically, the opposite of an Accumulation Spring.
Phase D
The Phase D of a Distribution is pretty much a mirror image of the Accumulation one. It usually has a Last Point of Supply (LPSY) in the middle of the range, creating a lower high. From this point, new LPSYs is created - either around or below the support zone. An evident Sign of Weakness (SOW) appears when the market breaks below the support lines.
Phase E
The last stage of a Distribution marks the beginning of a downtrend, with an evident break below the trading range, caused by a strong dominance of supply over demand.
Outcome:
Naturally, the market doesn’t always follow these models accurately. In practice, the Accumulation and Distribution Schematics can occur in varying ways. There may be delays in some phases.
Still, Wyckoff’s work offers a wide range of reliable techniques, which are based on his many theories and principles. It is certainly much more than a TA indicator.
In essence, the Wyckoff Method allows investors to make more logical decisions rather than acting out of emotions. The extensive work of Wyckoff provides traders and investors a series of tools for reducing risks and increasing their chances of success. Still, there is no foolproof technique when it comes to investing. One should always be wary of the risks.
Best regards EXCAVO
Token
What is the Wyckoff Method? Accumulation schematic #1 Wyckoff Event and Phases
The Wyckoff Method was developed by Richard Wyckoff in the early 1930s. It consists of a series of principles and strategies initially designed for traders and investors. Wyckoff dedicated a significant part of his life teaching, and his work impacts much of modern technical analysis (TA). While the Wyckoff Method was originally focused on stocks, it is now applied to all sorts of financial markets.
The three laws of Wyckoff
The Law of Supply and Demand
The first law states that prices rise when demand is greater than supply, and drop when the opposite is true. This is one of the most basic principles of financial markets and is certainly not exclusive to Wyckoff’s work. We may represent the first law with three simple equations:
Demand > Supply = Price rises
Demand < Supply = Price drops
Demand = Supply = No significant price change (low volatility)
In other words, the first Wyckoff law suggests that an excess of demand over supply causes prices to go up because more people are buying than selling. But, in a situation where there is more selling than buying, the supply exceeds demand, causing the price to drop.
Many investors who follow the Wyckoff Method compare price action and volume bars as a way to better visualize the relation between supply and demand. This often provides insights into the next market movements.
The Law of Cause and Effect
The second law states that the differences between supply and demand are not random. Instead, they come after periods of preparation, as a result of specific events. In Wyckoff's terms, a period of accumulation (cause) eventually leads to an uptrend (effect). In contrast, a period of distribution (cause) eventually results in a downtrend (effect).
Wyckoff applied a unique charting technique to estimate the potential effects of a cause. In other terms, he created methods of defining trading targets based on the periods of accumulation and distribution. This allowed him to estimate the probable extension of a market trend after breaking out of a consolidation zone or trading range (TR).
The Law of Effort vs. Result
The third Wyckoff law states that the changes in an asset’s price are a result of an effort, which is represented by the trading volume. If the price action is in harmony with the volume, there is a good chance the trend will continue. But, if the volume and price diverge significantly, the market trend is likely to stop or change direction.
For instance, imagine that the Bitcoin market starts to consolidate with a very high volume after a long bearish trend. The high volume indicates a big effort, but the sideways movement (low volatility) suggests a small result. So, there is a lot of Bitcoins changing hands, but no more significant price drops. Such a situation could indicate that the downtrend may be over, and a reversal is near.
Wyckoff’s Schematics
The Accumulation and Distribution Schematics are likely the most popular part of Wyckoff’s work - at least within the cryptocurrency community. These models break down the Accumulation and Distribution phases into smaller sections. The sections are divided into five Phases (A to E), along with multiple Wyckoff Events, which are briefly described below.
Accumulation Schematic
Wyckoff method accumulation schematic
Phase A
The selling force decreases, and the downtrend starts to slow down. This phase is usually marked by an increase in trading volume. The Preliminary Support (PS) indicates that some buyers are showing up, but still not enough to stop the downward move.
The Selling Climax (SC) is formed by an intense selling activity as investors capitulate. This is often a point of high volatility, where panic selling creates big candlesticks and wicks. The strong drop quickly reverts into a bounce or Automatic Rally (AR), as the excess supply is absorbed by the buyers. In general, the trading range (TR) of an Accumulation Schematic is defined by the space between the SC low and the AR high.
As the name suggests, the Secondary Test (ST) happens when the market drops near the SC region, testing whether the downtrend is really over or not. At this point, the trading volume and market volatility tend to be lower. While the ST often forms a higher low in relation to the SC, that may not always be the case.
Phase B
Based on Wyckoff’s Law of Cause and Effect, Phase B may be seen as the Cause that leads to an Effect.
Essentially, Phase B is the consolidation stage, in which the Composite Man accumulates the highest number of assets. During this stage, the market tends to test both resistance and support levels of the trading range.
There may be numerous Secondary Tests (ST) during Phase B. In some cases, they may produce higher highs (bull traps) and lower lows (bear traps) in relation to the SC and AR of Phase A.
Phase C
A typical Accumulation Phase C contains what is called a Spring. It often acts as the last bear trap before the market starts making higher lows. During Phase C, the Composite Man ensures that there is little supply left in the market, i.e., the ones that were to sell already did.
The Spring often breaks the support levels to stop out traders and mislead investors. We may describe it as a final attempt to buy shares at a lower price before the uptrend starts. The bear trap induces retail investors to give up their holdings.
In some cases, however, the support levels manage to hold, and the Spring simply does not occur. In other words, there may be Accumulation Schematics that present all other elements but not the Spring. Still, the overall scheme continues to be valid.
Phase D
Phase D represents the transition between Cause and Effect. It stands between the Accumulation zone (Phase C) and the breakout of the trading range (Phase E).
Typically, Phase D shows a significant increase in trading volume and volatility. It usually has a Last Point Support (LPS), making a higher low before the market moves higher. The LPS often precedes a breakout of the resistance levels, which in turn creates higher highs. This indicates Signs of Strength (SOS), as previous resistances become brand new supports.
Despite the somewhat confusing terminology, there may be more than one LPS during Phase D. They often have increased trading volume while testing the new support lines. In some cases, the price may create a small consolidation zone before effectively breaking the bigger trading range and moving to Phase E.
Phase E
Phase E is the last stage of an Accumulation Schematic. It is marked by an evident breakout of the trading range, caused by increased market demand. This is when the trading range is effectively broken, and the uptrend starts.
Best regards EXCAVO
$CREAM - New Long-Term Weekly AnalysisHello everyone!
What a odd few days it has been since my last post. TL;DR, $CREAM has managed to go below my sell zone and altogether crash many support zones at $70, $62, and $52.
With that, I am currently projecting a (semi) long-term rise, back up again to the $65-70 support zone which should mean $CREAM will keep climbing.
UNISWAP - Time to buy again?It seems like the downmove is close to its end, which makes me feel bullish regarding the UNI token, again... I see similar situation as before, at the last bigger up-move. On h4 the MACD is trying to turn back to the green zone again, slowly, while on h1 the price is about to draw a clean and strong continuous divergence. If it all happens, that will confirm a buy signal at around $4.000 or somewhere in the $3.9 - $4.2 zone. What do you think?
#Theta #Token #BreakOut & #OpenSky? #tradingviewTheta token looks like a classic break out.
At the moment the double top is taken out of the market.
It is important to close above the breakout level.
Ideally the breakout should be followed by a retest of the breakout level of the top.
Charttechnically there are no hurdles and therefore OpenSky is possible.
However, resistances could build up at 0.77-0.78 as well as in the range 0.95-0.96.
Greeting from Hannover
Stefan Bode
HuoBi/USDT (The structure is Bullish)Updated View On Huobi/USDT (29 MAY 2020)
Since the Huobi exchange gets popular, so will their token.
We are seeing the gradual and potential upswing of this pairs and it is likely to go higher.
3.80 region is a nearest support while 5.5 is the nearest resistant.
Let's see how high it can go.
DYODD, all the best and read the disclaimer too.
Feel Free to "Follow", press "LIKE" "Comment".
Thank You!
Legal Risk Disclosure:
Trading crypto, foreign exchange or CFD on margin carries a high level of risk, and may not be suitable for all investors.
The high degree of leverage can work against you as well as for you.
Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite.
The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor.
DISCLAIMER:
Any opinions, news, research, analyses, prices or other information discussed in this presentation or linked to from this presentation are provided as general market commentary and do not constitute investment advice.
Sonicr Mastery Team does not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
Aragon - A more than great Nation! (Es una gran nación)This is from before Spain was Spain.
The Crown of Aragon ( /ˈærəɡən/; Aragonese: Corona d'Aragón; Catalan: Corona d'Aragó; Spanish: Corona de Aragón ) was a composite monarchy, also nowadays referred to as a confederation of individual polities or kingdoms ruled by one king, with a personal and dynastic union of the Kingdom of Aragon and the County of Barcelona. At the height of its power in the 14th and 15th centuries, the Crown of Aragon was a thalassocracy controlling a large portion of present-day eastern Spain, parts of what is now southern France, and a Mediterranean "empire" which included the Balearic Islands, Sicily, Corsica, Sardinia, Malta, Southern Italy (from 1442) and parts of Greece (until 1388). The component realms of the Crown were not united politically except at the level of the king, who ruled over each autonomous polity according to its own laws, raising funds under each tax structure, dealing separately with each Corts or Cortes. Put in contemporary terms, it has sometimes been considered that the different lands of the Crown of Aragon (mainly the Kingdom of Aragon, the Principality of Catalonia and the Kingdom of Valencia) functioned more as a confederation than as a single kingdom. In this sense, the larger Crown of Aragon must not be confused with one of its constituent parts, the Kingdom of Aragon, from which it takes its name.
en.wikipedia.org
In 1469, a new dynastic familial union of the Crown of Aragon with the Crown of Castile by the Catholic Monarchs, joining what contemporaries referred to as "the Spains", led to what would become the Kingdom of Spain under King Philip II. The Crown existed until it was abolished by the Nueva Planta decrees issued by King Philip V in 1716 as a consequence of the defeat of Archduke Charles (as Charles III of Aragon) in the War of the Spanish Succession.
en.wikipedia.org
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Now it's the only Spanish top token project over Ethereum in which one day the rules and laws of any community that is formed will be collected in form of smart contracts, be it a community of neighbors, irrigators or a new model of city. Whatever form of community that wants to exist will be ruled by these contracts.
It's Law 2.0, or maybe even 3.0, it is what it is. Keep an eye on this!
To one leg of my grandparents, from Teruel.
MATIC NETWORK vs. BINANCE COIN (MATIC/BNB) _ BINANCE EXCH _ 30m*** 30 minute chart version ***
*** 30 minute candles version ***
WILL COLLECT MATIC TOKEN @ THESE PRICES :
💰💰💰
0.0009539 BNB. ($0.021) USD equivalent
0.0010294 BNB. ($0.023) USD equivalent
0.0011049 BNB. ($0.025) USD equivalent
Profit prices to consider 🧐🤔:
0.0020588 BNB. ($0.047) USD equivalent
MATIC NETWORK vs. BINANCE COIN (MATIC/BNB) _ BINANCE EXCH _ 1DayWILL COLLECT MATIC TOKEN @ THESE PRICES :
💰💰💰
0.0009539 BNB. ($0.021) USD equivalent
0.0010294 BNB. ($0.023) USD equivalent
0.0011049 BNB. ($0.025) USD equivalent
Profit prices to consider 🧐🤔:
0.0020588 BNB. ($0.047) USD equivalent
BAT con combustible/ There is some Gas In BAT Otro suelo redondo puede estar acumulando el precio en 0.24 y liderarlo por encima de 0.27
————-
Maybe a Rounding support could be holding the price between 0.24 and lead it later around 0.27
[$WAVES] Do you wanna ride the Waves with me ? Version Francaise & English Version below
Version Francaise
Bonjour à tous,
Aujourd'hui, je vous propose un éclairage sur le projet Waves
Waves est une plateforme de blockchain que vous pouvez utiliser pour créer votre propre jeton personnalisé. Selon leur site Web, vous pouvez créer votre propre jeton en une minute seulement. Waves comprend également un échange décentralisé, DEX, dans lequel vous pouvez échanger votre pièce nouvellement créée dans une paire de négociation avec n'importe quel autre jeton Waves.
Récemment, Waves a conclu un partenariat avec Microsoft pour baser leur blockchain sur Azure ( azure.microsoft.com)
D'un point de vue technique, en 3 Jours, nous avons un set up interessant puisque le prix est sortie d'une structure d'accumulation avec un volume important et le prix s'établit au dessus du nuage d'Ichimoku ( la lagging span est à surveiller car en cours de passer la précédente figure de consolidation ( triangle). Une cloture au dessus serait un signal d'achat fort.
Les différents niveaux de surveillance sont notés sur le chart.
Comme toujours, on reste prudent puisque nous venons de butter à deux reprises sur la résistances 3 Jours.
Stay Safe, Trade Safe,
PEACE
---
English Version
Good morning, everyone,
Today, I'd like to shed some light on the Waves project...
Waves is a blockchain platform that you can use to create your own custom token. According to their website, you can create your own token in just one minute. Waves also includes a decentralized exchange, DEX, in which you can exchange your newly created coin in a trading pair with any other Waves token.
Recently, Waves has partnered with Microsoft to base their blockchain on Azure ( azure.microsoft.com ).
From a technical point of view, in 3 Days, we have an interesting set up since the price has broken out of an accumulation structure with a large volume and the price is established above the Ichimoku cloud (the lagging span is to be watched because in the process of passing the previous consolidation figure (triangle). A closing above would be a strong buying signal.
The different levels of monitoring are noted on the chart.
As always, we remain cautious since we have just hit the 3 Days resistance twice.
Stay Safe, Trade Safe,
PEACE
Matic Network the sleeping giant!Matic EMAs are bullish in fact the 21 just retested the 50 1D EMA, all the other indicators look just as amazing. Stoch RSI is erect, MACD has crossed over and is bullish, RSI is erect and pointing toward the moon. Matic printing a huge ascending bullish triangle.
Matic tokens have been moving into staking lock ups, less supply in the market to keep the price down. Matic has finished their Mainnet and Dapps are flooding over. Chandresh, head of marketing and Strategy has hinted that something big is coming for Matic holders. Ethereum needs Matic to enable mass adoption.
So much more to come. .04825 first major target .08350 major break out of the ascending bullish triangle.
Aztec the Eye
ONGUSDT ONG performing well from last dip. High volume accumulation. Price can reach above 0.35, but to reach 0.4 and above might be a break down and can get support. Lot of potential to touch 0.35 and above. Good support so far. Hopefully will reach 0.4 before it breaks down.
EOS/BTC Short Term Forecast July 1st 2020 12 UTCHere's my estimations for how the next week will play out for EOS/BTC on Binance over the next week.
Low: 0.0002585 BTC
High: 0.0002856 BTC
Thanks for tuning in :) Disclaimer, I am not responsible for any losses incurred while attempting to use my data, I hope this can prove to be some sort of learning tool for some and give insight as to how I personally come up with my own numbers. Take into full consideration this could be a completely bad forecast. Cheers
NWC BullFlagThe great week behind NWC and some bullish signs for another one ahead.
Bull flag is pretty obvious here just as reasons for recent growth, top traders and people from the scene acknowledged NWC.
New event with KuCoin incoming on 12.6.2020, no detailed info displayed yet i think.
Chart explanation:
1. Green fat line - trendline, probably largely a consequence of the burning system, organic price growth. (up 46% since start 2020)
2. Red lines are the price tags to look after, a stop loss at the bottom is recommended just in case
3. Green are is what NWC needs to break in order to reach higher, not sure where the next resistances are
4. Look at RSi
5. Hodl
XLM / USDT. 90% profit. Real trading, not fortune tellingGood day to all
I think everyone has heard about XLM success
Really...
Moeneta is very promising for earning, not investment
It's time to understand that crypto is not a place for investment!
All we can do now is follow two fractals
1) Downward channel - the main trend
2) The horizontal channel in which the breakthrough of the main
MOVEMENT OPTIONS
1) The main trend is replaced by an uptrend during a rebound
2) Continuation of the sidewall
We follow and develop the head
All profit and success!
[$BAT] Huge Time coming for BAT - Line are telling us :)Many lines come to an final ending point... Right Now !
Support has been turned to Resistance but volume are kicking in and may brake the downline trend.
Watch this upcoming firework!
trade safe , stay safe
PEACE
thetabtc short term buyif you operate in binance, and like to trade shitcoins. hop on this trade. cheers
EOS showing momentumPlease feel free to comment on my charts with your thoughts or remarks!
- Yellow line = long term resistance (since 26th of april 2018)
- Yellow line is forming a long term descending triangle with the weekly support @ 3347 satoshi's
- Broke out of a falling wedge and is now in an upward channel
- If momentum lasts I'm expecting a test @ 4010 satoshi's before we head back down
A lot will be riding on the moves of bitcoin.
HUOBI wants 100xs on Its exchangeI do think this is an undervalued coin
I do not trade USDT pair but i just wanted to show wtf is goin on!
There will be volatility and there will be blood & eventually HUOBI and its shitcoins on this exchange will have their own season (its my own opinion, I'm not telling anyone to run and buy mindlessly)
As always calculate your Risk, Don't let ur stops to be swept!
Wait for retracements or breakout, otherwise you'll get really bad R:R and lots of stress!
BAT (elliot count) - New All Time Lows???Ive been calling for BAT to go down for a long time now with my previous posts, so far its exactly what it's done. And its only looking more bearish to me. Now I will try and look at it from a bigger picture.
The current momentum from X wave on way down seems to me as a 5 wave Impulse (will be confirmed once we see the final wave 5 head lower towards the 11c range).
A 5 wave move down as an impulse means the overall structure is not done and is likely much larger, the last leg should be in 3 waves per Elliot count before a major bull run can start.
So I will be expecting another B of larger X to take structure, a .618 fib retracement of previous X is a good expectation. After which a bigger final leg Z should take place. And unfortunately towards the end of 2020 i will be expecting new all time lows for BAT. Keep in mind, it was nearly worthless beginning of 2019 so heading back below 1c is a very possible - in my eyes likely scenario.
Do i want it? absolutely not, i believe in this coin and its success. But im just not seeing the confidence in the market for the 2020, and a bigger correction could take place.
This is my new primary count. I will check back every few months to see how it tracks along.
Not a financial advice, just my analysis.
