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

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 

Wyckoff Power Charting

The New Nifty Fifty

by Bruce Fraser

The ‘Nifty-Fifty’ era for stocks started in the 1960s and went into the early 1970s. These fifty or so stocks were consistent out-performers. Their earnings, sales and stock price growth stood apart from most other stocks. These stocks grew in value, year after year. They became known as ‘One Decision’ stocks. These companies could be bought and held forever. Buy them and forget them. The result and the consequence was that the Nifty-Fifty became very overvalued, and they stayed that way for a long time. Most other stocks during this era languished, underperforming badly. Read More 

Wyckoff Power Charting

Pedaling Wyckoff

by Bruce Fraser

Horizontal Point and Figure analysis is one of the great mysteries of technical analysis. Very few do this analysis, and even fewer do it correctly. An incorrect procedure leads to bad counts. But when it is done properly PnF is magical. We have spent much time here establishing proper counting technique. The next step is to use the excellent stockcharts.com PnF charting engine to make (and count) lots and lots of charts. PnF analysis is like learning to ride a bicycle. Once you know how, you’ve got it. Here we will circle back and review some recent energy and oil PnF Read More 

Wyckoff Power Charting

Junk is in the Eye of the Beholder

by Bruce Fraser

High yield bonds came into their own in the 1980’s and have become ever more important to the functioning of the economy. They are often referred to as ‘Junk Bonds’ because they are bonds of lower quality. Investors are attracted to them for the higher yields offered over treasury and investment grade corporate yields. As Wyckoffians we watch Junk Bonds because they offer a richness of information about the state of the economy and the risk appetite of investors for bonds and stocks. Let’s look at the current state of the Junk Bond market to see if there are any useful messages now Read More 

Wyckoff Power Charting

Around the World in 21 Ways

by Bruce Fraser

The EAFE Stock Market Index includes the large and mid-cap stocks of 21 developed countries throughout the world. The U.S. and Canada are excluded from this index. The stocks in the EAFE represent more than $1.9 trillion of market capitalization. Currently there is a worldwide movement toward nationalism. This could impact the flow of goods exported between countries. Many of the manufacturers of goods we rely on are based in these 21 countries.  If trade competition and barriers are impacted by the winds of political change will the EAFE be affected? Often the markets act in Read More 

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 

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