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

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 

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 

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