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

A Dollar for Your Thoughts

by Bruce Fraser

The dollar has been sinking since the end of 2016. Recently there has been much attention and commentary from the financial community on the impact of this weakness. A falling dollar typically helps U.S. exporters by lowering the price of their goods in world markets. A lower dollar imports inflation by raising the price of the many goods manufactured overseas and sold in the U.S. Rising inflation can have an effect on the level of interest rates. These effects typically manifest over many months, and sometimes years of currency weakness. If there is a change in the winds for the currency Read More 

Wyckoff Power Charting

Campaigning Gold

by Bruce Fraser

The Wyckoff Method is designed for the campaign oriented trader. Discipline, patience and vision are the skills required to conduct a bull or bear campaign from start to finish. Wyckoff provides outstanding tools for executing on such a trading orientation. Point and Figure offers a technique for estimating the extent of a price move. Trendline analysis has unique methods for examining and gauging the quality of the unfolding trend. Accumulation and Distribution analysis helps to determine the readiness of price to emerge into a fresh new uptrend or downtrend. Combining these skills makes Read More 

Wyckoff Power Charting

The Hustling Russell

by Bruce Fraser

Wyckoffians need to stay flexible and be willing to change their minds. It is an acquired skill to re-analyze charts with fresh eyes. We should practice this each day. Recently we studied the mid-capitalization and the small-capitalization indexes (click here for a link to the post). Here let’s re-analyze the Russell 2000, with fresh eyes. These smaller-cap index uptrends stopped in December 2016. Meanwhile large-cap growth stocks have enjoyed stellar performance in 2017. The advent of a weak dollar and emerging leadership of international stocks suggest a new rotation Read More 

Wyckoff Power Charting

Point & Figure Diary

by Bruce Fraser

Regular readers have been following the epic saga dating back to 2011, when Dr. Hank Pruden published his Point and Figure (PnF) count for the new bull market. This count projected to a range of 17,600 to 19,200 for the Dow Jones Industrial Average ($INDU).  When this objective was met we said: ‘But wait, there is more’. Almost exactly a year ago, in this blog, we revisited the original Accumulation and found that an additional count could be added to the PnF price objective.  The 17,600 to 19,200 count was very useful as the $INDU was stopped in this range for more than two Read More 

Wyckoff Power Charting

FANGtastic Trendlines

by Bruce Fraser

The Wyckoff Method for constructing Trendlines is unique. They inform our analysis and support sharper tactics.  Trendlines and Trend Channels bring a chart to life. We have used significant amounts of ink drawing and discussing trendlines in this column (below are links to prior columns on Trendline construction and analysis). Continue to practice identifying the stride of the advances and declines on your favorite charts using these techniques. Each Wednesday afternoon, Roman Bogomazov and I conduct a Market Outlook and Stocks Review session online. We analyze Read More 

Wyckoff Power Charting

WFM Is Swallowed Whole

by Bruce Fraser

Whole Foods Market agreed to be acquired by Amazon.com, Inc. on June 16, 2017. This ‘disruptive’ move by Amazon.com roiled the retail stocks, which were already sagging badly. The price drops extended throughout the retail brick-n-mortar stocks. Investors in these retail stocks feared that AMZN would strategically leverage the acquisition with a physical presence at every WFM store location. As Wyckoffians our mission is to discover and follow in the footsteps of the large Composite Operator (C.O.). The C.O. conducts campaigns in stocks that have the potential to Read More 

Wyckoff Power Charting

More Pie. Bigger Sky!

by Bruce Fraser

In 2011 Dr. Hank Pruden published a remarkable Point and Figure chart study, which called for a new bull market in stocks. The horizontal PnF counting method, as applied by Dr. Pruden, revealed a price objective of 17,600 / 19,200. That count produced a whopping 11,100 Dow Jones Industrial Average (INDU) points and was added to the countline of 8,100 and the low of 6,500. A big and bold count. During 2014 the minimum count was achieved. Thereafter a Reaccumulation formed. In July of 2016 a new uptrend began. Dr. Pruden, Roman Bogomazov and I reevaluated the original base Read More 

Wyckoff Power Charting

Shorts Find TSLA Shocking

by Bruce Fraser

Tesla has just achieved a market capitalization that is larger than either Ford or General Motors. Currently Tesla manufactures just two different models (with a third on the way). How is it possible that Tesla has a valuation that exceeds these two Detroit behemoths? As a Wyckoffian I will tell you that I have no earthly idea. Could an analysis of the charts reveal the intentions of the large informed interests (the Composite Operator)? Is Tesla done going up, or is there more charge in the batteries to propel this stock price higher? Tesla has been ‘climbing the wall Read More 

Wyckoff Power Charting

Another Stupid Chart Trick

by Bruce Fraser

Time for another ‘Stupid Chart Trick’ (click here for a prior chart trick). I have counted about one zillion (this might be a slight exaggeration, but barely) Point and Figure chart formations. As a consequence of this personal passion, I have devised some counting conventions that have proven to be very helpful. This is not a classic horizontal PnF counting technique. So please explore its usefulness for yourself with some practice counting. A common problem with counting PnF Distribution is over-counting. We have addressed this in a prior post (click here for a Read More 

Wyckoff Power Charting

Segmenting PnF Counts

by Bruce Fraser

Wyckoffians often break up a large Point and Figure count into smaller count objectives. A large count objective usually requires a significant period of time to be fulfilled and pauses will occur along the way. Sometimes these pauses result in a period of Reaccumulation prior to moving on to higher and higher price objectives. Segmenting PnF counts can help to identify and evaluate these pauses. Another very important reason to divide up PnF counts, is that often the entire base is not Accumulation. It is important to only count the Accumulation portion of the base structure. A decline Read More 

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