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

Dow Jones Industrials PnF Dilemma

by Bruce Fraser

Horizontal Point and Figure (PnF) analysis offers a method for estimating the potential extent of a move. The dilemma is what to do when the price objective has been met. Should there be an automatic response of reducing position size in the price objective zone? Are there more dynamic strategies to consider? With the Wyckoff Method, we combine ‘tape reading’ skills of the vertical charts with the PnF count objectives. Though we have a dilemma of ‘what to do’ when these two skills converge, what a thrill it is to have all the elements come together in a well conceived campaign. Read More 

Wyckoff Power Charting

Do Semiconductors Still Compute?

by Bruce Fraser

Semiconductor stocks have been top performers throughout most of 2016 and 2017. Often a strong Semiconductor group performance encourages speculation across the entire stock market and that has certainly been the case in 2017. Preceding the current 21-month uptrend in the Semiconductor ETF (SMH), a Reaccumulation formed and built a Cause for this advance. It seems as though semiconductor stocks always go up, but that Range-Bound Reaccumulation lasted more than 18 months. As a group these stocks were trendless for a year and a half. A smaller Reaccumulation formed from Read More 

Wyckoff Power Charting

Natural Gas Follows Crude?

by Bruce Fraser

In the prior post, we evaluated Crude Oil which appeared to have completed a Reaccumulation. Natural Gas has a family resemblance to Crude Oil, but seems to be in a slightly different position. Early in 2016 $NATGAS and $WTIC began important rallies that lasted through the year and then entered large trading ranges. Please take a few minutes and compare $WTIC (click here for a link) and the $NATGAS charts below.                           (click on chart for active version) Read More 

Wyckoff Power Charting

Crude Oil Runs with the Bulls

by Bruce Fraser

Crude Oil lends itself to Wyckoff Analysis and has the capacity to trend for long periods of time. Take some time now and review a case study on the long swings for this important commodity (click here for the study). Note how well the Point and Figure charts have been working at generating accurate price counts. A worthwhile practice is to review the price history of the instruments you are trading and the precision of the PnF counts in these prior swings. From these studies, you can learn the behavioral tendencies of prices and nuances in counting characteristics. Read More 

Wyckoff Power Charting

Tesla Recharging?

by Bruce Fraser

Tesla is proving to be an excellent ongoing case study. We suspect that the Composite Operator (CO) is very active in the electric automobile manufacturer. Please take a few minutes and review two prior posts; ‘The Point and Figure Distribution Paradox’ (click here) and ‘Shorts Find Tesla Shocking’ (click here). In each study, Point and Figure (PnF) analysis lit the way to important turns in the stock. Also, a study of the Reaccumulation area revealed the conclusion of the trading range and the emergence into a new uptrend. PnF counting of Segment 1 of the Reaccumulation generated a target Read More 

Wyckoff Power Charting

NASDAQ Composite. Trick or Treat?

by Bruce Fraser

Recently we studied the NASDAQ Composite ($COMPQ) as it appeared to be on the verge of jumping into an uptrend after building a Cause. Now the $COMPQ is within one box of the minimum PnF count of our prior study ‘$COMPQ Up Close’ (click here). We evaluated two trading counts employing intra-day PnF charts ranging from about 6,730 to 6,912. Last Friday’s price surge puts the $COMPQ at a critical juncture. As prices approach PnF objectives, Mr. Wyckoff would advise to ‘Stop, Look & Listen’ to the market to determine its probable future direction. And not to jump to conclusions Read More 

Wyckoff Power Charting

GE's Wild Ride

by Bruce Fraser

General Electric (GE) is a venerable old company in the Dow Jones Industrial Average. It was formed (Thomas Edison was the most famous of its founders) in 1892 and in 1896 it was among the first 12 stocks in the newly formed Dow Jones Industrial Average. Now GE is the last remaining of the original Dow Jones Industrial stocks, and it continues to be among the dominant industrial companies in the world. XLI, the Industrial Select Sector SPDR Fund (GE is a major component), has been among the sector leaders of the last year. Meanwhile GE has been on a wild ride that has veered significantly Read More 

Wyckoff Power Charting

Dear Point and Figure Diary

by Bruce Fraser

Dear Point and Figure Diary, As you know, I made an entry into your pages on July 15th of this year (click for a link). At the time, it appeared that two Reaccumulation Point and Figure Counts (PnF) were stacking up. This suggested another rally phase ahead in the Dow Jones Industrial Average ($INDU). I tend to be conservative in my counting, and that was the case then. But, after making this diary entry, in the second half of July additional columns materialized and increased the count objective. This spurred me to reassess the prior (and bigger) count (March to June period). In the PnF Read More 

Wyckoff Power Charting

Chemistry Experiment

by Bruce Fraser

Two strong sectors in September were Materials (XLB) and Industrials (XLI). During the second half of a business cycle expansion these themes typically do well, and that is the case here. The economy has begun to expand at a faster rate. These industries develop pricing power which allows them to raise prices for their goods at a faster rate than the general economy is growing. These companies now have ‘leverage’ in their business models which make them particularly attractive to investors as the economic cycle accelerates. Commodity chemical stocks have a Read More 

Wyckoff Power Charting

Group Dynamics

by Bruce Fraser

Let’s have a peak at some interesting sectors. At times, sectors can tip us off to the motives of the market. Sectors and Industry Groups have a general tendency to be either early, coincident or late business cycle beneficiaries. This business expansion has certainly been a long one and it appears to have life left in it. We can often tell where we are in the cycle by which sectors are strong and leading, and also by the sectors that are lagging behind. Early business cycle leadership include Consumer Discretionary, Consumer Staples and Financials. Late Read More 

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