Wyckoff Power Charting

Bruce Fraser
About the author: , an industry-leading "Wyckoffian", began teaching graduate-level courses at Golden Gate University (GGU) in 1987. Working closely with the late Dr. Henry "Hank" Pruden, Bruce developed curriculum for and taught many courses in GGU's Technical Market Analysis Graduate Certificate Program, including Technical Analysis of Securities, Business Cycle Analysis and the Wyckoff Method. For nearly three decades, he co-taught Wyckoff Method courses with Dr. Pruden, and has also used this approach to the markets as the foundation of his own trading for over 35 years. Learn More

Latest Posts

Wyckoff Power Charting

Residential Constructive

by Bruce Fraser

In August of 2018 we studied the Residential Construction industry group (click here to view). This group was very weak throughout 2018. After a sharp January decline a long period of Redistribution set in. Rising interest rates during the year became a headwind for the group. In September, the redistribution concluded and a persistent downtrend followed. The bond market has had a major rally since October. Has this rally (falling interest rates) improved conditions for the home building industry?                 Read More 

Wyckoff Power Charting

S&P 500 Trending

by Bruce Fraser

The Wyckoff Method constructs trendlines somewhat differently than other popular technical methods. Mr. Wyckoff’s trendline method is obscure and not in wide usage. The main benefit of this construction technique is to support effective trading setups as the trend is unfolding. Trends (all timeframes) tend to set the rate of their upward or downward stride very early. The essential value in identifying the new trend quickly is in how it supports more and better trading junctures as it grows and matures. Here we will review the recent activity in the S&P 500 while studying the procedure Read More 

Wyckoff Power Charting

Material Development

by Bruce Fraser

The U.S. Mining Index is composed of industries that manufacture a broad spectrum of materials used in manufacturing and infrastructure projects. Typically, the Mining Index comes into a performance leadership position as the economy heats up. Therefore, in the middle to late stage of a business cycle expansion this group and the stocks within should be leading the way upward. In the current episode of Power Charting (StockCharts TV) Martin Pring leads a wonderful discussion on how to use the Pring KST to identify where sectors and asset classes are with respect to the business cycle. We Read More 

Wyckoff Power Charting

WDAY Works Out

by Bruce Fraser

In a September 2017 blog, we studied Workday, Inc. (WDAY). We looked at WDAY as an emerging ‘Campaign Stock’. These stocks have characteristics that could propel their uptrends for years to come. The Wyckoff Method offers the tools to identify these candidates. Chief among them is structural chart analysis and Point and Figure studies. Take some time now to study the prior WDAY post and then we will bring these charts and analysis up to date (click here for a link). (click here for active chart) During 2017 price and relative strength Read More 

Wyckoff Power Charting

Golden Ticket

by Bruce Fraser

In August of 2018 Wyckoff Power Charting published a monthly chart of the continuous contract of Gold ($GOLD). A very large Accumulation structure appeared to be forming after a cyclical bear market. Meanwhile a downtrend (see the Supply Line) had been in control for more than seven years. In that blog post it was noted that in 2018 $GOLD had persistently declined until it reached the long term Support Line. We drilled into the daily vertical chart and studied the eight month downtrend. Please take time now to reread ‘Prospecting for a Low in Gold’ (click here for a link). Read More 

Wyckoff Power Charting

AAPL Campaign Completed

by Bruce Fraser

Because the Wyckoff Methodology identifies elements of structure and context within price (Accumulation and Distribution schematics and Phase Analysis), it naturally strengthens the attribute of patience in its user. There is a time to watch, a time to act, and a time to sit in a trending trade. Horizontal Point and Figure (PnF) analysis has a role to play in this trading process. The Law of Cause and Effect requires that a Cause must develop prior to the Effect. Large interests will absorb available stock (Cause building during Accumulation) prior to the start of a major uptrend (the Read More 

Wyckoff Power Charting

Will PnF Light the Way in 2019

by Bruce Fraser

As 2018 was getting underway, a January Buying Climax (BCLX) and a February Automatic Reaction (AR) turned a robust uptrend into a ‘Range-Bound’ market for most of the remainder of the year. Was this large trading range preparing to jump upward or cascade lower? In the fourth quarter the broad indexes tipped their hand and sliced through the important Support lines. Now 2018 is looking as though it was Distributional and confirmed by the start of a Downtrend. What does 2019 hold for investors and traders now that major indexes have dipped below key Support and are now rallying? Is there a Read More 

Wyckoff Power Charting

The NASDAQ Composite Stumbles into 2019

by Bruce Fraser

For stock indexes, 2018 started dramatically and ended with even more drama. In January a Buying Climax (BC) stopped the long term uptrend of stock indexes and a sharp Automatic Reaction (AR) produced an important Change of Character from a trending into a trading range market environment. This sequence of events was discussed in the Wyckoff post ‘S&P 500 Notebook’ in March (click here for a link).  The NASDAQ Composite ($COMPQ) was a rich case study for Wyckoffians during 2018. Please take some time now and review the post: ‘NASDAQ Composite. Down for the Read More 

Wyckoff Power Charting

Yield Curve Inversion?

by Bruce Fraser

The recent weakness in the stock market was partially attributed to the flattening of the ‘Yield Curve’. When bond yields (typically U.S. Treasuries) are plotted in order of their time to maturity, a Yield Curve is the result. Typically, the shortest maturity instruments (T-Bills) have the lowest yield and the longest (30 year Treasury Bonds) have the highest yields. A normal relationship is when the short-term end of the curve has low yields and the long-term end has high yields. This is a typical (and steep) yield curve. There are times in economic cycles when the Read More 

Wyckoff Power Charting

International Intrigue

by Bruce Fraser

Rolling into the New Year can often bring seismic shifts in financial markets. In January of 2018 stock indexes climaxed and reversed. This set the tone of market action for the year. International markets were among the hardest hit during the year. The iShares MSCI Emerging Markets ETF (EEM) declined -12.25% through the end of November. The iShares MSCI EAFE (EFA) was down -8.95% in the same period. There may be change in the wind for these International Indexes as 2018 comes to an end. Note the climactic conclusion to the bear trend of the MSCI EAFE Index Read More 

Wyckoff Power Charting

Semi. Campaign. Completion?

by Bruce Fraser

As Wyckoffians we like to celebrate long holiday weekends by looking at Point and Figure charts. Allow me to contribute to your weekend chart stack with this case study on the semiconductor stocks (VanEck Vectors Semiconductors ETF will be our proxy). Semiconductor stocks have been important leadership during this long bull market. Does a leadership theme signal its intent prior to a major price ascent? As Wyckoffians we expect a Cause to form prior to a trend (the Effect). A preparation phase should have developed in the Semiconductor group prior to the major uptrend. This should be Read More 

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