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

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 

Wyckoff Power Charting

Nasdaq Composite. Down for the Count?

by Bruce Fraser

The current decline was accompanied by a large increase in volatility and volume. Can the Wyckoff Method help guide our thinking and improve our tactics? A recent parallel is the decline in January and February of this year and the market action that followed in its aftermath. Wyckoff provides a road map in the form of Accumulation and Distribution schematics. Accumulation is the process of stock being absorbed by large institutional interests. The completion of absorption is represented in the price and volume behavior on the vertical bar charts. The opposite is the case during Read More 

Wyckoff Power Charting

Headwinds

by Bruce Fraser

Headwinds have been forming for the stock market. Point and Figure counts (PnF) have been signaling where these opposing forces to higher stock prices were likely to emerge. Stocks have reacted downward with authority after hitting these PnF targets. Let’s review, and bring current, some of these prior chart studies. Possibly they can provide a glimpse of what is ahead for the stock market indexes.                                    (click on chart for active version) Read More 

Wyckoff Power Charting

Health Care Plan

by Bruce Fraser

In March of 2017 the Health Care Sector (XLV) emerged from a large Reaccumulation structure into a fresh new uptrend. Much has happened since then. Let’s update the status of this uptrend. After a sustained advance from 2009 to 2015 the trend stopped and a Reaccumulation formed. This trend stopping area was flagged by a base PnF count (click here to view). After the Reaccumulation the uptrend resumed. The PnF Counts have provided a useful road map for the likely direction and extent of the trend. Recently a Count has been fulfilled. Does this suggest that XLV has completed a bull run? Or Read More 

Wyckoff Power Charting

Campaigning Crude Oil

by Bruce Fraser

It is time to update the blog post, 'Crude Oil Runs with the Bulls', of November 11, 2017 (click here). Our Crude Oil ($WTIC) odyssey began in December of 2015 with a study of the Distributional Top touching $112. A Distribution Point and Figure (PnF) count produced an almost unbelievable price objective of $34 / $28. That December $WTIC fell to about $35. On the chart below note the early February 2016 low as the climactic action continued to skid lower. On the way down $WTIC formed a Redistribution PnF count that confirmed the objective of the Distributional top PnF Count at $30 / $28 Read More 

Wyckoff Power Charting

deFANG'd?

by Bruce Fraser

In June we studied the First Trust Dow Jones Internet Index Fund (FDN). This ETF is our proxy index for the FANG stocks. At that time FDN had accelerated into an overbought condition by throwing over its trend channel. Almost immediately weakness set in and FDN tumbled to the lower trendline. The rush of FDN into the June Buying Climax (BCLX) had the appearance of institutions crowding their buying into quarter-end, late in the uptrend. The decline that followed was significant and was labeled an Automatic Reaction (AR). As Wyckoffians when we observe such market action, a ‘Change of Read More 

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