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

Tactical Dilemma

by Bruce Fraser

While some major indexes have pushed to new high ground recently, the Dow Jones Industrial Average ($INDU) has remained a notable laggard. This creates a tactical dilemma for Wyckoffians. Is the weaker Dow Jones Industrial Average offering a ‘tell’ by lagging the broad market? Or is the industrial (thirty) stock index being left behind by more dynamic indexes that are launching into fresh new uptrends?  Wyckoff is an actionable method that emphasizes what to do, and when to do it. Wyckoffians try to not get caught up in the popular market thinking about why markets and stocks rise Read More 

Wyckoff Power Charting

Wyckoff Intraday Workshop

by Bruce Fraser

During my most recent guest appearance on MarketWatchers LIVE (7/5/18) I introduced a case study of intraday trading with the Wyckoff Method. Intraday trading is not every traders cup of tea, but even if you are not a short term trader there are benefits to studying the intraday charts. Integration of intraday Vertical Bar and Point and Figure chart methods are equally effective in this condensed timeframe as they are in longer (daily and weekly) periods. Read More 

Wyckoff Power Charting

A Mid-Year Look at FANG Stocks

by Bruce Fraser

Remember to tune in this coming Thursday, July 5th, when I will be a guest on MarketWatchers Live. I recently promised to drill down into intraday charting using the Wyckoff Method. The Wyckoff technique works very well on smaller timeframes and it is fun to do. On Thursday I will devote my time to this analysis. Please join us. The First Trust Dow Jones Internet Index Fund (FDN) was a stellar performer in the 2nd quarter gaining 14.23%. A major contributor to FDN performance, were the FANG stocks in this capitalization weighted ETF (AMZN, FB, GOOG, GOOGL, NFLX). Though there Read More 

Wyckoff Power Charting

Retail Roll-Reversal

by Bruce Fraser

Internet retailers have not been required to charge sales tax for many online transactions. This has created a major advantage over the brick-and-mortar retailers. A recent court ruling could require internet retailers to include state sales tax on all purchases. Will this breathe new life into the traditional retailing stocks and make them more competitive with their internet counterparts? With the Wyckoff Method we always let the Tape guide our strategy.                       Read More 

Wyckoff Power Charting

Solar Stocks Go Dark

by Bruce Fraser

Since mid-May the renewable energy stocks have tumbled. This may have come as an unexpected surprise to many. Let’s do a mini-blog case study of the Dow Jones Renewable Energy Equipment Index ($DWCREE) to determine if there was advance warning of trouble brewing. As Wyckoffians we are really in the dark here as volume is not available. To shed some light on this problem, look at two actively traded renewable energy ETFs: TAN and ICLN. They have a family resemblance to $DWCREE (with volume) for study purposes.               Read More 

Wyckoff Power Charting

Tale of the Tape

by Bruce Fraser

As Wyckoffians we often generate a hypothesis regarding the forces that propel stocks and industry groups higher (or lower). Homebuilders enjoyed a major uptrend in 2016-17.  In this case study from 2016; interest rates were near historically low levels, thus we could conclude that home purchases would be stimulated. And homebuilding stocks should rally. The Wyckoff Method requires that such a theory be confirmed by market conditions. It is very important that the action of the market itself provide the evidence of the validity of the theory. In other words the 'Tale of the Read More 

Wyckoff Power Charting

BankRoll

by Bruce Fraser

Bank stocks are telling an interesting tale. As Wyckoffians we interpret the story the market is telling through the action of the tape. Banks are at the hub of the wheel of the economy. These financial institutions continually inject or remove liquidity from the economy through their operations. It has been said that money flow is the grease that lubricates the economic machinery. When the lubrication of money is being injected into the economy, it keeps the machinery running smoothly.  When banks are telling a tale on the tape it often has consequences for the Read More 

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 

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