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

Divining Distribution

by Bruce Fraser

In last Thursday’s MarketWatchers LIVE (recording available here) we discussed the Wyckoff Distribution concept of the Upthrust After Distribution (UTAD). Distribution and Accumulation adhere to a logical path or sequence of price and volume. During Distribution the Composite Operator (C.O.) has determined the area of price where they intend to initiate the selling of their holdings. This process takes time. Each Phase describes the progression of selling. At the completion of the selling process, the stock is in a weakened state and vulnerable to suddenly falling into the Markdown Phase Read More 

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 

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 

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