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

WDAY Works Out

by Bruce Fraser

In a September 2017 blog, we studied Workday, Inc. (WDAY). We looked at WDAY as an emerging ‘Campaign Stock’. These stocks have characteristics that could propel their uptrends for years to come. The Wyckoff Method offers the tools to identify these candidates. Chief among them is structural chart analysis and Point and Figure studies. Take some time now to study the prior WDAY post and then we will bring these charts and analysis up to date (click here for a link). (click here for active chart) During 2017 price and relative strength Read More 

Wyckoff Power Charting

Golden Ticket

by Bruce Fraser

In August of 2018 Wyckoff Power Charting published a monthly chart of the continuous contract of Gold ($GOLD). A very large Accumulation structure appeared to be forming after a cyclical bear market. Meanwhile a downtrend (see the Supply Line) had been in control for more than seven years. In that blog post it was noted that in 2018 $GOLD had persistently declined until it reached the long term Support Line. We drilled into the daily vertical chart and studied the eight month downtrend. Please take time now to reread ‘Prospecting for a Low in Gold’ (click here for a link). Read More 

Wyckoff Power Charting

AAPL Campaign Completed

by Bruce Fraser

Because the Wyckoff Methodology identifies elements of structure and context within price (Accumulation and Distribution schematics and Phase Analysis), it naturally strengthens the attribute of patience in its user. There is a time to watch, a time to act, and a time to sit in a trending trade. Horizontal Point and Figure (PnF) analysis has a role to play in this trading process. The Law of Cause and Effect requires that a Cause must develop prior to the Effect. Large interests will absorb available stock (Cause building during Accumulation) prior to the start of a major uptrend (the Read More 

Wyckoff Power Charting

Will PnF Light the Way in 2019

by Bruce Fraser

As 2018 was getting underway, a January Buying Climax (BCLX) and a February Automatic Reaction (AR) turned a robust uptrend into a ‘Range-Bound’ market for most of the remainder of the year. Was this large trading range preparing to jump upward or cascade lower? In the fourth quarter the broad indexes tipped their hand and sliced through the important Support lines. Now 2018 is looking as though it was Distributional and confirmed by the start of a Downtrend. What does 2019 hold for investors and traders now that major indexes have dipped below key Support and are now rallying? Is there a Read More 

Wyckoff Power Charting

The NASDAQ Composite Stumbles into 2019

by Bruce Fraser

For stock indexes, 2018 started dramatically and ended with even more drama. In January a Buying Climax (BC) stopped the long term uptrend of stock indexes and a sharp Automatic Reaction (AR) produced an important Change of Character from a trending into a trading range market environment. This sequence of events was discussed in the Wyckoff post ‘S&P 500 Notebook’ in March (click here for a link).  The NASDAQ Composite ($COMPQ) was a rich case study for Wyckoffians during 2018. Please take some time now and review the post: ‘NASDAQ Composite. Down for the Read More 

Wyckoff Power Charting

Yield Curve Inversion?

by Bruce Fraser

The recent weakness in the stock market was partially attributed to the flattening of the ‘Yield Curve’. When bond yields (typically U.S. Treasuries) are plotted in order of their time to maturity, a Yield Curve is the result. Typically, the shortest maturity instruments (T-Bills) have the lowest yield and the longest (30 year Treasury Bonds) have the highest yields. A normal relationship is when the short-term end of the curve has low yields and the long-term end has high yields. This is a typical (and steep) yield curve. There are times in economic cycles when the Read More 

Wyckoff Power Charting

International Intrigue

by Bruce Fraser

Rolling into the New Year can often bring seismic shifts in financial markets. In January of 2018 stock indexes climaxed and reversed. This set the tone of market action for the year. International markets were among the hardest hit during the year. The iShares MSCI Emerging Markets ETF (EEM) declined -12.25% through the end of November. The iShares MSCI EAFE (EFA) was down -8.95% in the same period. There may be change in the wind for these International Indexes as 2018 comes to an end. Note the climactic conclusion to the bear trend of the MSCI EAFE Index Read More 

Wyckoff Power Charting

Semi. Campaign. Completion?

by Bruce Fraser

As Wyckoffians we like to celebrate long holiday weekends by looking at Point and Figure charts. Allow me to contribute to your weekend chart stack with this case study on the semiconductor stocks (VanEck Vectors Semiconductors ETF will be our proxy). Semiconductor stocks have been important leadership during this long bull market. Does a leadership theme signal its intent prior to a major price ascent? As Wyckoffians we expect a Cause to form prior to a trend (the Effect). A preparation phase should have developed in the Semiconductor group prior to the major uptrend. This should be Read More 

Wyckoff Power Charting

Natural Gas Lights Up

by Bruce Fraser

U. S. Natural Gas Fund (UNG) made an important ‘Spring’ low at the end of 2017. A Change-of-Character (CHoCH) emerged in the trading behavior of UNG in the new year. On the weekly chart UNG had been in a one year downtrend that concluded with a Spring and a Test. Much of the trading in UNG after the Test was lackluster and hovered around the Support line. But each succeeding low was higher and a clue that gas was finding good bids. Just as the third quarter was ending UNG abruptly lifted off. Just as the stock market ran into trouble in October, UNG began an Read More 

Wyckoff Power Charting

Using PnF Charts for Intraday Trading

by Bruce Fraser

Point and Figure charts are useful tools for more than calculating price objectives. Many Wyckoffians start their analysis with PnF charts and then turn to vertical bar charts when and if needed. Classic Wyckoff analysis uses a combination of vertical and PnF charts. But it is excellent practice to develop an eye for the unfolding conditions as they appear on a PnF chart. And the truth is that, for many Wyckoffians, the PnF chart is the first chart studied and where the most time is spent. Let’s conduct an intraday case study using only a PnF chart. The X-axis on a PnF Read More 

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