Wyckoff Power Charting

Bruce Fraser
About the author: , an industry-leading "Wyckoffian", has been teaching graduate level courses on Technical Analysis at Golden Gate University since the early 1990s. Bruce has been instrumental in crafting the curriculum at Golden Gate University, where his teaching has focused largely on Wyckoff Analysis.

Latest Posts

Wyckoff Power Charting

The Law of Cause and Effect in Action

by Bruce Fraser

The Law of Cause and Effect is a cornerstone principle of the Wyckoff Method. Cause building on the chart precedes the Effect of a Markup or a Markdown. Wyckoffians meticulously study trading ranges on the charts for Accumulation or Distribution characteristics. Analysis of Phases (Phases A thru E) track the progression of the activities of the Composite Operator (C.O.) in their operations. In Wyckoff analysis, identification of the chart elements that produce the trading range reveals the anchor points for estimating the Point and Figure (PnF) count objectives of the Effect Read More 

Wyckoff Power Charting

Bonds Get Clipped

by Bruce Fraser

As stocks have been getting roiled over the last two weeks, bonds have been somewhat overlooked. Bond prices began dropping in December 2017, and possibly contributed to the weakness in stock prices weeks later. It has been about a year since we have looked at treasury bonds. What are they indicating now, and could they impact the future direction of stock prices?                                (click on chart for active version) A monthly vertical chart illustrates the secular Read More 

Wyckoff Power Charting

AAPL Pie

by Bruce Fraser

Apple, Inc. has been an endlessly illuminating Wyckoff Method case study during this bull market advance. The ascension of AAPL demonstrates the power of large institutional sponsorship. The top echelon of this sponsorship is what Wyckoffians call the ‘Composite Operator’ (C.O.). The footprints of the C.O. can be identified in the vertical price charts. The objective is to determine the motives of the C.O. (from the price chart) and then to interpret when the stock is ready to emerge into a phase of markup (or markdown). AAPL has been an instructive case study for us as it has very large Read More 

Wyckoff Power Charting

Inflation Incubation

by Bruce Fraser

Our resident Intermarket and Business Cycle experts, John Murphy and Martin Pring, have done a masterful job of evaluating the recent emergence of commodity prices. One proxy for commodity prices, the Commodity Research Bureau Index ($CRB), has come to life after a decade long downtrend. Is this evidence of an early, and important, uptrend in the price of commodities? We will eagerly await future posts from Mr. Murphy and Mr. Pring about this critical investment sector. In the meantime, let’s study a Point and Figure chart (PnF) of the $CRB for potential price objectives Read More 

Wyckoff Power Charting

Swing Trading Case Study

by Bruce Fraser

2017 was the year of the ‘Uni-Market’ where leading stocks, industry groups and indexes marched higher from start to finish. Many important stocks got into a lockstep trend beginning in 2016. Two-Way markets are more common and we should see more of this in 2018. Markets are typically a cacophony of cross currents. The ebb and flow of themes that are emerging and submerging constantly. The Wyckoff Method is ideally suited to identifying and navigating profitable and emerging trends. Let’s conduct a Swing Trading case study on one stock that has been in a long-term trend with a pattern of Read More 

Wyckoff Power Charting

Reaccumulation Review

by Bruce Fraser

A big thank you to Erin Swenlin and Tom Bowley for hosting me on MarketWatchers LIVE this past Wednesday. I had a blast being on their excellent (and Live) market program. The Wyckoff topic we covered was Reaccumulation structures. There were a few interesting intra-day charts that we did not have time to show. Let’s look at those charts here and use them for a general review of the very powerful and useful Reaccumulation trading range concept. A Reaccumulation serves the same purpose as an Accumulation with one main distinction. An Accumulation Read More 

Wyckoff Power Charting

Schlumberger Rising

by Bruce Fraser

The Energy Sector lit up the final month of 2017. There are a number of dynamic stocks amongst this theme we can profile. Let’s choose one (and circle back to study others later on). This case study is a good way to begin our posts in the new year. Stocks that are completing Accumulation and Reaccumulation are poised to begin important uptrends. Accumulation is the process of Absorbing available shares of stock, stealthily, in a trendless trading range market. Once Absorption is complete, the stock can then suddenly and unexpectedly change behavior from listless into a ripping uptrend. The Read More 

Wyckoff Power Charting

Year-End Cleanup

by Bruce Fraser

Two favorite tools of Wyckoffians are Relative Strength analysis and Point and Figure (PnF) charting (Horizontal Method). As the year comes to a conclusion let’s reflect back on some case studies and bring them up to date. ‘In Gear with Relative Strength’ (click here for a link) profiled two Industry Groups (US Aerospace & Commodity Chemicals) as emerging market leadership. Relative Strength analysis was the basis for this conclusion. Both of these Industry Groups were entering into confirmed uptrends in price as well as Relative Strength. Take some time now and review this post Read More 

Wyckoff Power Charting

Dow Jones Industrials PnF Dilemma

by Bruce Fraser

Horizontal Point and Figure (PnF) analysis offers a method for estimating the potential extent of a move. The dilemma is what to do when the price objective has been met. Should there be an automatic response of reducing position size in the price objective zone? Are there more dynamic strategies to consider? With the Wyckoff Method, we combine ‘tape reading’ skills of the vertical charts with the PnF count objectives. Though we have a dilemma of ‘what to do’ when these two skills converge, what a thrill it is to have all the elements come together in a well conceived campaign. Read More 

Wyckoff Power Charting

Do Semiconductors Still Compute?

by Bruce Fraser

Semiconductor stocks have been top performers throughout most of 2016 and 2017. Often a strong Semiconductor group performance encourages speculation across the entire stock market and that has certainly been the case in 2017. Preceding the current 21-month uptrend in the Semiconductor ETF (SMH), a Reaccumulation formed and built a Cause for this advance. It seems as though semiconductor stocks always go up, but that Range-Bound Reaccumulation lasted more than 18 months. As a group these stocks were trendless for a year and a half. A smaller Reaccumulation formed from Read More 

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