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

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 

Wyckoff Power Charting

Sectors. Groups. Stocks.

by Bruce Fraser

Let’s continue our discussion about using Relative Strength Analysis to find leading stocks. A blend of Wyckoff analysis and Relative Strength analysis offers an efficient method for zoning in on the best leading stock candidates. In the prior post, Industry Group analysis was explored. Here we will jump into stock analysis. The concept is the same, find the leading stocks in the best Industry Groups. We know that when an Industry Group enters a leadership position there are individual stocks forging the way within that group. These early leaders will generally be mostly large Read More 

Wyckoff Power Charting

In Gear with Relative Strength

by Bruce Fraser

Wyckoffians find Relative Strength analysis to be very useful and illuminating. Relative Strength studies can be like having X-ray vision. With Relative Strength tools, one can see important hidden secrets about the health of a stock or industry group. Relative Strength analysis is simple and straightforward to apply and is one of the most useful tools in the Wyckoff toolkit.                                           (click on chart for active version) Read More 

Wyckoff Power Charting

Stair Step to Profits

by Bruce Fraser

Let’s look back at 2016, Wyckoff style. As Wyckoffians, our mission is to sharpen our skills and to gain some ideas about how 2017 could unfold. The past year began with a stiff correction that cascaded into a Selling Climax in January. A classic Accumulation formed between January and March when the large informed interests of the Composite Operator absorbed stock. Once the absorption was complete the market (here we study the S&P 500) jumped into an uptrend. Calculating the Point and Figure return potential, the S&P 500 generated a Cause of over 19% (this price objective was Read More 

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