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

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Wyckoff Power Charting

Ship in a Bottle

by Bruce Fraser

A model ship in a bottle reminds me of the intricate detail, on a minature scale, available with the Wyckoff Method. Wyckoff analysis scales up, into very large timeframes, and down into the shortest of timeframes. Those who study and trade on an intra-day basis should consider adding these Wyckoff tools for analyzing smaller timeframes.  Very large time periods are ideal for campaign trading very long term trends. While intra-day charts are best for short term and swing trading. As a normal practice I keep and count intra-day index Point and Figure charts. This helps keep me in Read More 

Wyckoff Power Charting

Two Way Markets

by Bruce Fraser

Since 2016 the broad stock market has been in a robust uptrend. Corporations have enjoyed an environment of stable and low interest rates with moderate rates of inflation. Such a backdrop of business conditions allows companies to efficiently manage their costs and grow earnings. Investors are willing to pay higher prices for stable and steadily rising earnings and sales.  One of the biggest cost inputs for corporations is energy costs. The price of energy permeates every aspect of the cost structure. When energy prices are stable or falling macro business conditions benefit Read More 

Wyckoff Power Charting

Richard W. Arms Jr., Wyckoffian

by Bruce Fraser

Richard (Dick) Arms was a very creative market technician. He tackled one of the most elusive concepts in technical analysis: Volume. He became famous for creating the ‘ARMS Index’ (previously known as the TRIN Index). Dick created the ARMS Index in 1967 and published it in Barron’s Magazine. It caught on very quickly. Because it compared the ratio of advancing and declining stocks to the ratio of up volume to down volume, it was understood to be a sentiment gauge. Quote platforms began to include the ARMS (TRIN) Index on their systems (read more about the Arms Index by clicking here) Read More 

Wyckoff Power Charting

Does This Market Have Bad Breadth?

by Bruce Fraser

The percentage of stocks above their 200 day moving average (200dma) is a breadth indicator that I have depended on for many years. It theoretically oscillates from zero to 100 percent. During bull markets this oscillator spends most of its time between 40% and 85%. During bear markets between 60% and 5%.  We chartists pay close attention to the position of our stocks to the 200dma. I seek stocks that are above their rising 200dma. This is a useful definition of an uptrend in force. When the inevitable correction arrives, we will look for the stock price to return to the 200dma and Read More 

Wyckoff Power Charting

A Wyckoff Week

by Bruce Fraser

Two events happened this week that captured the attention of Wall Street. There was much buzz about both and they seem to be related. On Tuesday the stock market took a big tumble, with the Dow Jones Industrials falling 424 points. The next day the Ten-Year US Treasury Yield ($TNX) touched 3.035% (topping the 3% threshold for the first time since late 2013 when it reached 3.036%). Together, these noteworthy events solidified investor anxiety. We Wyckoffians might be as anxious as the next investor when such headline events pass by. But then we manage those emotions by turning to Read More 

Wyckoff Power Charting

Jumping the Creek. A Review.

by Bruce Fraser

Let’s review the concept of the ‘Creek’. This is a nuanced Wyckoff principle, but once understood, it becomes a very powerful trading edge. Support and Resistance zones are typically understood to exert their influence at linear price levels. Horizontal lines are drawn on charts to represent these important levels. Wyckoffians employ Support and Resistance zones in chart analysis with fervor. To read more on the concept of ‘Jumping the Creek’ click here. In the area of Accumulation and Reaccumulation the forces of Supply and Demand are competing with each other Read More 

Wyckoff Power Charting

Win the Race with Relative Strength

by Bruce Fraser

Fellow Wyckoffian, Dan, emailed a very good question this week. Dan is seeing the energy stocks move up and he observes that being a cyclical industry, these stocks typically move in unison. Dan is observing that some of the stocks are completing Accumulation phases while others are already in uptrends. He asks how to select the likely best performers among these stocks. The Wyckoff Method offers excellent techniques for identifying the best stocks in the best groups. Stockcharts.com has given us great tools for modernizing these concepts. In addition to trendline analysis and Point Read More 

Wyckoff Power Charting

S&P 500. Zooming In.

by Bruce Fraser

Wyckoff Method tools can be used in multiple time frames. We can often gain clarity by evaluating larger or smaller chunks of time. We recently studied the daily bars of the S&P 500 as it approached important Support. So far, this Support has been respected. Let’s review this chart first published on March 26th(click here for a link) and then zoom down into a smaller view and see if anything is revealed.                                    (click Read More 

Wyckoff Power Charting

Detect Rotation with PnF Charts

by Bruce Fraser

The winds are shifting in the financial markets. Often Point and Figure charts offer a perspective that other chart types might obscure. Point and Figure chart construction is minimalistic. It keeps the important price swings and discards the rest. PnF charting lends itself to techniques for estimating price objectives from the size of the Accumulation or Distribution.  If conditions are in fact shifting in financial markets, horizontal PnF count objectives should reveal these changes.                   Read More 

Wyckoff Power Charting

S&P 500 Notebook

by Bruce Fraser

I make lots of notes on my charts. As conditions unfold I have a sense for what my thinking was and whether adjustments need to be made in tactics. In the ‘good old days’ stock charts were plotted by hand and notes were jotted onto charts; now we have wonderful annotation tools within stockcharts.com. Briefly let’s take a look at the current, and unfinished business, of the S&P 500 ($SPX).                           (click on chart for active version) Here are my current notes, which are Read More 

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