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

Latest Posts

Wyckoff Power Charting

The Big AAPL

by Bruce Fraser

Wyckoffians are always on the search for Causes being built. A trend will end and a Cause will start. A Cause will end and a trend will start. The Wyckoff Method is centered around the interpretation of these conditions and the appropriate tactics. The Composite Operator (C.O.) is our ‘fictitious’ large investor who builds size positions in these campaign stocks. The C.O. Accumulation of these shares result in big bases. The Distribution of shares at the end of a major uptrend will result in a decline. In the case study of Apple Inc. (AAPL) we had the opportunity to study a small Read More 

Wyckoff Power Charting

Zim's Group

by Bruce Fraser

In 1987 Hank Pruden decided to take a break from teaching the Technical Analysis Courses at Golden Gate University. He offered me the job of teaching these courses during his absence. I was honored by his invitation and accepted. His sabbatical went on for three years and I believe it was a very creative period for Hank. In 1988, we became aware of a new mental technology called Neuro Linguistic Programming. The epicenter of this new thought work was Marin County which is very close to GGU. Hank and I discussed NLP over lunch and concluded that it could have profound benefits for traders Read More 

Wyckoff Power Charting

Financial Sector Update

by Bruce Fraser

We looked at the Technology Sector (XLK) in the last post (click here for a link). Another very important market sector is the Financials. Here is a high-altitude view of the Financial Sector from a Wyckoffian perspective.                                       (click on chart for active version) The Financial Select Sector ETF has a wicked waterfall decline in 2008 and into 2009. Study this decline as it illustrates why Selling Climaxes (SCLX) are best avoided. This Selling Read More 

Wyckoff Power Charting

Animal Spirits

by Bruce Fraser

Leadership in the Technology Sector is generally a very good sign for the entire stock market. It bodes well for the market when technology stocks, as a group, are leadership as a rally starts. Speculative animal spirits are heightened by the emerging leadership of the Technology Sector. Conversely when technology stocks are generally laggards, caution is warranted for the market as a whole. What is the current state of the Technology Sector and can we draw any Wyckoffian conclusions about the general health of the broad stock market? Using the Technology Select Sector ETF (XLK) we will Read More 

Wyckoff Power Charting

Crude Oil's Slippery Slope

by Bruce Fraser

Crude oil is on a slippery slope downward. Was this completely unexpected or were there clues of the impending decline? The stock market is a discounting mechanism. Stocks traditionally light the way by starting to move prior to the underlying economic events. That, of course, is the argument for Technical Analysis of stock prices. If stocks are going to move first, investors who wait for the economic news will have missed much of the trend. Does this Discounting phenomenon work only in larger time frames? Is it possible to harness the stock markets x-ray vision in the Read More 

Wyckoff Power Charting

NASDAQ 100 Index. A Current Case Study.

by Bruce Fraser

Point and Figure charts are generated from price volatility, unlike a vertical (bar) chart, which is plotted as a function of time. This is particularly valuable to Wyckoffians who are always on the search for a Cause being built. Causes lead to Effects; Accumulation results in Markup and Distribution turns into Markdown. Point and Figure analysis provides a method for estimating the potential extent of that Markup or Markdown. We have spent considerable time on methods and procedures for PnF analysis, and will continue our skill building using these powerful charts. Read More 

Wyckoff Power Charting

Get to the Point and Figure

by Bruce Fraser

Sector activity can illuminate important thematic trends unfolding within the market. Point and Figure studies identify large Accumulation and Distribution Structures related to these themes poised to be campaigned over many months and years. The Sector can be campaigned using Exchange Traded Funds (ETFs). Also, by drilling down into the Sub-Industry Groups and stocks the very best leadership candidates can be identified and traded. Here we will focus solely on the PnF studies and develop an eye for how these large formations help inform our strategy and entry tactics. This is, by no Read More 

Wyckoff Power Charting

Three Legged Stool

by Bruce Fraser

Let’s do an integration case study. We have spent much time on two robust processes; Point and Figure analysis and Vertical Bar Chart analysis. Recently Relative Strength studies have been added to the mix. A stool has three legs, any fewer would make it unstable. Our Wyckoff stool has three strong legs. In this case study, we will combine these tools and see if it makes our analysis sturdier and more cohesive.                                      (click on chart for active version) Read More 

Wyckoff Power Charting

Bonds. Shaken, Not Stirred.

by Bruce Fraser

It is time to circle back and update our studies of the US Treasury Bond market. On October 7, 2016, we did a Wyckoffian analysis of Treasury Bonds as they appeared to be at a critical juncture. Take a few minutes now and go back to that post (click here for a link) and review this prior analysis. To summarize; at that point bonds were in a well advanced state of Distribution that was 21 months along. After an exhaustion rally (or Upthrust) bonds returned back to the Resistance level. By zooming into the UT area, we identified completed Distribution on a smaller scale and took two Read More 

Wyckoff Power Charting

Avoidance Strategy

by Bruce Fraser

The Wyckoffian mission is to trade and invest in the best stocks in the leading Industry Groups. We have been studying examples of leadership characteristics using Wyckoff Analysis in combination with Relative Strength. Recall that our workflow is to drill down from Sector to Industry Group to Stock. Always seeking the strongest stocks in the strongest groups. It is also a worthwhile exercise to study groups that are stalling and falling from favor. Once an Industry Group transitions from leadership to laggard it can remain there for a long time. In an uptrending bull market we might call Read More 

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