Mr. Wyckoff called his charting methodology ‘Tape Reading’. Determining the present position and probable future direction of prices from their own action. Prices have tendencies which can be detected on the charts. Context is the idea that recent price action will provide clues about what to expect next. This is at the core of how to use and profit from the Wyckoff Method.
In our Market Outlook and Stocks Review webinars (Wednesday 3pm PDT), Roman and I work with our attendees to develop mastery around anticipating the tendencies of the markets. One of the most valuable mastery skills is identifying (early on) when a trending market becomes a ‘Range Bound’ market. In the June Market Outlook sessions, we began observing a ‘Change of Character’ in the Nasdaq 100 Index. This change of context, we concluded, would have consequences for the action of this index for the weeks, and possibly months to come. Let’s review how the Wyckoff Method informs our analysis and tactics with a case study of the current position of the NASDAQ 100 (NDX) Index.