Wyckoff Power Charting

February 2018

Wyckoff Power Charting

Distribution Review

by Bruce Fraser

It has been a long time since we have explored the intricacies of the Wyckoff Distribution structure. But since 2018 has opened with a Bang, by going straight up in January and then early February’s retracement of the prior month’s advance, it is time to review. The year 2018 may well be defined by ‘Two-Way Markets’ with abrupt upward and downward swings that will require deft handling to trade them. Wyckoff is a skill set for doing this. This coming Thursday I will be Erin and Tom’s guest on MarketWatchers Live (click here to learn more). During my last visit, I Read More 

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