Get started

Wyckoffdistribution

Is The Wyckoff Valid for Bitcoin?What is the Wyckoff Method? The Wyckoff accumulation is a century old form of technical analysis created by Richard D. Wyckoff. It is based on the principles of supply and demand. According to Wykoff there are two main phases in a market cycle: The accumulation phase and the distribution phase. f this was our Wyckoff spring moment then July could be very exciting! — Lark Davis (@TheCryptoLark) June 22, 2021 The accumulation phase usually follows a big price drop (Phase A) In the accumulation phase the price bottoms out as investors are starting to accumulate share or in this case Bitcoin. The demand and supply are close to even until slowly investors feel more comfortable to buy more and the price rises (Phase D and E in Graph). The distribution phase can be imagined as the mirrored version of this graph. After a heavy price increase, demand and supply are even and the price stops increasing, over time leading to a larger crash in price. Wyckoffs method states markets never repeat exact circumstances. So, instead of looking for the market to repeat itself, Wyckoff’s method requires analysts to look at broader sets of patterns. All price patterns vary slightly from previous incarnations either by size or volume to therefore making analysts adopt to different sets of outcomes instead of the same one. The second rule to the Wyckoff method tells investors and analysts to respect market relativity. Meaning, in order to understand today’s market trend, one must also evaluate the past. Finally, In the Wyckoff method, Wyckoff introduced three trends. These include up, down, and flat. He also introduced three time frames in his strategy: short term, intermediate, and long term. Is the Wyckoff Method valid? According to many experts in the industry, we could soon entering an uptrend in Bitcoin price. “In terms of the Wyckoff method, this $28.8K lower low is very similar to the $65K higher high. Both cause a maximum emotional effect on market participants.” Final thoughts Time will soon tell if the Bitcoin bounce off of 28k support this week is the spring to send Bitcoin back to reach it’s previous all time high. Many in crypto are hoping for a bullish reversal of the market come July.
COINBASE:BTCUSDLong
by sachi_diary
12
BTCUSDT 4h, Wyckoff accumulationm, bearish days may be ending?!?This is update of previous idea, so please take a look at related ideas for more information and follow us to be informed of idea updates. 🙋 Please let me know what you think. 🚀 If you would like to be kept updated, please follow us. 🚀 If you like the analysis then do drop a LIKE and a COMMENT. Also do SHARE it with your friends. 🚩 Note - These are my personal notes and in no way a financial advice. Do your own research and Trade wisely
Long
by golden_day
2
BITCOIN - Wyckoff Redistribution UpdateHello everyone, rouzwelt here Well I have demonstrated Wyckoff Backup Action Events in my last idea as you can see in the screenshot below (full article link at botttom of page), and as of right now we have seen clear rejection from our resistant line at 32300 (PS) , and price action is showing that it's weak and can dump more. and the projection I have shown in the Screenshot is playing out somehow. I want to note something in the next Screenshot below, and that is as you can see, price action have clearly broke down local trend lines (yellow lines) it could have formed. that's not good but I just wanted to note this so that we can see btc couldn't form a local trend line to find support at. but let's see if the current one can hold or not. Anyway, Let me say something, whenever price is going up you want to see volume coming in and increase at rallies up and decrease at reactions and vice versa in the opposite direction. Now let's get back to the main chart. I believe that btc is weak right now, we don't see volume coming in at rallies high, actually its the opposite, we see volume at rallies down and decrease at reactions up. And that's what we are seeing right now at the btc 1H chart which I believe is pointing lower levels at this point. But let me say smoething, that can reverse for a short period of time and we can head high locally to the blue trend line drawn in the main chart, well if we see this happening then I'd like to see the price squeeze around the blue trend line and a break out after that, only in that case I would open a long position for a short-term uprise. But lower levels are the more probable scenario (the red arrow price projection), and if so, we will get the last LPSY in back up action phase of wyckoff method and then I would be opening my swing short position. Let's end by saying that the blue trend line in the main chart is the most important level for me to break if BTC wants to head high and test 36.5/38/40/42k resistants and potentially showing some strengths after almost 3-4 months.I don't want to sound bearish and actually I hate bear market as much as you do but we need to see some sign of strengths before saying we can see higher levels at least at this stage.
by rouzwelt
4
BITCOIN - Wyckoff Redistribution Backup ActionHello everyone, rouzwelt here As I demonstrated in my last idea which you can see its screenshot below (Full Article Link Bellow) that we need more info and more candles to get printed so we can begin to say wether BTC is in accumulation or redistribution phase. And right now after BTC failed to break Last Point Of Supply and rejected, we are seeing a lower low getting printed, although that's not the best news, but that shows us that we need to be prepared and position ourselves accordingly. And right now we can clearly see that BTC have entered its backup action phase, where a smaller version of wyckoff method is playing out. I have noted the events in wyckoff method in the chart and projected the price action which is probably going to play out going forward. Price now may rise to middle of the wyckoff channel then gets rejected that forms the LPSY in Backup Action before dumping again to print a local lower low (below SOW - bold red line) or a golbal lower low (below SC - dotted red line) and forming the last LPSY which is where I personally am going to position myself right there. Although I should note that there is still a chance for this idea to get invalidated if we start rally higher and print a higher high, break above the 35/36k resistant and head to our main resistant area of 42k, and when that happens I'm going to start thinking that this whole price action of last few weeks may have been an accumulation, but we sure need to see BTC break above 42k resistant and print a higher high, that's the key. But for now the chances are low as BTC is close to the bottom of the channel and we don't see buyers showing any sign of strengths. I should note that the higher the volatility at this stage the more chance BTC is in redistribution rather than accumulation. How much price can dump if this idea plays out? I don't know and I don't care at this moment, all care about is that I can open my position with minimum risk possible, and on that note I'm going to end here. Have fun and trade safe.
by rouzwelt
3
Wyckoff Redistribution or Accumulation??I have been looking closely at the price action since we have fallen down to 30/40k area, as I have demonstrated in the chart as you can see the wyckoff phases, right now as we have bounced from the lower 30/29k area with a wick it may be an early sign of spring, and as we know it if its a spring we should see a macro higher high, that means btc must break 42k resistant and close above it daily. if we get that its a confirmed spring and we can look for buy setup on backup action. but if even we get a spring and head high it would more be a dead cat bounce and can reject at 50/60k area. but the second scenario is that we have printed a SOW (sign of weakness) and now we are at last point of supply, which means that lower levels are ahead. I know that might not be the best news for many of us, but we should stay balanced and look for both options, as if you dont pay attention to the worst option you might get wiped out. As for my own personal opinion, I believe the chart looks more like its redistribution rather that accumulation, I say this because we had an clear UT that rejected badly to 29k area, yes it didnt close below 30k but thats more a sign of weakness to me rather a spring. before this week we had some good bullish news but i think they came at the worst time possible, and now they are forgotten like El Salvador news, so they didnt effect the market as they would have if came at a better time. I dont want to sound bearish but I believe there are many strong resistants up ahead that each of them can reject BTC hardly. right now Id rather monitor the price action closely to see how candles get printed and then I will plan my entry according to that. thats the best strategy for now at least for mid-term cause that would reduce my risk to minimum, cause the price action in the 30/40k range so far have been haunting everyone's SL. Anyway let's wait and see what happens and know that if you are using wyckoff as your main strategy, you always wait for confirmation and you make all of your money and profits in between, you dont buy the low, you dont sell the high. Trade safe and practice risk management all the times.
COINBASE:BTCUSD
by rouzwelt
10
What is the Wyckoff MethodPhase A. Stopping the previous bearish trend. • PS. Preliminary Support. It's the first attempt to stop the downward movement that will always fail. • SC. Selling Climax. Climate action that stops the downward movement. • AR. Automatic Rally. Bullish reaction. An upward movement that sets the maximum range. • ST. Secondary Test. Test of the level of supply in relation to climate action. Establishes the end of Phase A and the beginning of Phase B. Phase B. Construction of the cause. • UA. Upthrust Action. Temporary breakout of the resistance and re-entry into the range. This is a test at the maximum generated by the AR. • ST as SOW. Secondary Test as Sign Of Weakness Sample of weakness in test function. Temporary break of the support and re-entry to the range. This is a test at the minimum generated by the SC. Phase C. Test • SP Spring. It is a test in the form of breakout of the minimums of Phases A and B. There are three different types of Springs. • Test Spring. Downward movement towards lows of the range in order to check the commitment of the sellers. • LPS. Last Point of Support. Test in the form of a bearish movement that fails to reach the minimum range. • TSO. Terminal Shakeout or Shakeout. Abrupt movement of minimum breakout that produce a deep penetration of the level of support and a fast Phase D. Bullish trend within the range. • SOS. Sign of Strength. Bullish movement generated after the Phase C Test event that manages to reach the top of the range. Also called JAC. Jump Across the Creek. Creek jump. • LPS. Last Point of Support. These are the rising troughs we find in the upward movement towards resistance. • BU. Back Up. This is the last big reaction before the bull market starts. Also called BUEC. Back Up to the Edge of the Creek. Back to the creek Phase E. Bullish trend out of range. •Succession of SOS and LPS generating a dynamic of rising highs and lows.
by FXMHDH
Wish it is not trueHey everybody! i liked wish before it became a mainstream on the wallstreetbets forums and now i have some warning points i would like to share with you: 1. The company is doing insanely big volumes vs it's market cap & 2. All retail investors have an eye on it ( bad sign for me) 3. Possible distribution on the 5 and 15 minutes chart? please have a look i would really like your feedback *I still consider wish a cheap stock at the moment and a move close to the IPO price over the next 3-9 months seems right to me. However with the attention it got from the reddit forum i believe it will accumulate between $9-12 for quite some time, maybe till the next earnings report... retail investors will get bored/tired and eventually exit their positions and then the stock can move higher.
W
by Philoslother
8
This is starting to look more like Re-DistributionI am comparing the re-accumulation zone back in January to now. Both the differences in the pattern and also the differences in the indicators. Volume, MACD (the histogram portion) and RSI currently are showing weakness after showing a bit of strength which is the opposite of what was shown during the accumulation stage in January. A point of interest on the chart is that the current support seems to have been the accumulation area below it in January as shown the chart. Things that could change my mind is that there will most likely be a further decrease in price coming soon. If it can bounce once more and break back through the current descending triangle, with a retest, then it would finally have that show of strength that is missing now for an accumulation zone. If the trend changes: I would say a break through would target the 50 DMA which is currently cutting through the old support. Another bounce area soon might be the 50 week MA (~29k) which may suggest that might be a potential spring area to retest the descending triangle once more and try to break over. If the markdown does continue: A complete breakdown could drop it towards the 17.5k area but never too clear on these. An overshot of any target before a bounce is always possible too. Wyckoff distributions usually lead to another re-distribution area after the initial markdown in price. That is currently what I am seeing now unless things change. Becareful trading out there as these times are meant to confuse and do the unexpected at least during the micro timeframes. One thing to add is even a breakthrough may not go far as the macro for BTC still is very negative. ***Disclaimer: I am not a financial professional/expert and all ideas from me are all speculation based off of my own research. Please do your own research as well as I am not responsible for others when it comes to their financial decisions.***
BITSTAMP:BTCUSDShort
by WITSIT
2
ETH USD Re-Distribution and Re-AccumulationThe purpose of this publication is to examine the ETH USD price over time in the context of Wyckoff accumulation and distribution schematics. It appears that we entered a period of distribution or re-distribution in early May with a buying climax (BC) observed on May 10. This event was followed by an automatic reaction (AR) and an upthrust (UT). Resistance lines are placed at the BC and the UT highs; a support line is placed at the AR low. On May 14, we observed a secondary test (ST) of supply and demand at price levels in proximity to the BC. On May 16, the ETH USD price descended below the AR support line and sign of weakness (SOW) was observed. Supply was now in control. The SOW was followed by a last point of supply (LPSY), a feeble rally in which the ETH USD price had quite a bit of difficulty advancing upward. On May 18-19, ETH USD may have transitioned to Phase A of re-accumulation. With supply in firm control, the price was marked down considerably, found preliminary support (PS) and a selling climax (SC) was observed. The SC was followed by an AR. From May 20 to 23, the ETH USD price was marked down considerably, with the ETH USD price observed in proximity to that of the SC, which defines the ST. The ST dipped below the SC. Note the resistance lines placed at the high of the AR and the rally that followed the ST. Support lines were placed at the low of the SC and the ST. To the best of my knowledge, ETH USD is in Phase B of re-accumulation and its price will be observe in the trading range defined by the support and resistance lines. It is likely that the ETH USD price will test the remaining supply with the price observed near the support lines (Phase C) before being marked up in a sign of strength (SOS) in Phase D. This is not financial advice. I am not your financial advisor. This is my opinion.
KRAKEN:ETHUSDShort
by Eightchains
2