Short Term Short

I have been trading AUDUSD up and down throughout this Wyckoff setup, it's the first Wyckoff pattern I have worked with for several years. After moving to MEan Reversion, Elliott structures and COT data.

Where I feel Wyckoff can really help, is all around the concept of the composite man theory.

When market conditions are such, that retail are loaded up on net long or net short positions. You will find that COT data showing the hedge funds and strong hand operators are moving positions in the other direction. When the climax is reached you can walk through the trade plan seeing key levels being touched and an instant reaction.

I have dropped a timeframe for this post to show the significance of the levels (sorry they are in pink) purely to highlight.

I have also left on the OScialltors showing the false bar stochastic situation, the bottom swing moves, Quadratics show the momentum bullish and bearish with a zero line cross on accumulation/distribution. Again purely for this post, I have included the distribution/accumulation oscillator showing the trend buys and sells changing hands and reversing.

I hope you find it interesting and please feel free to like and comment below.

Disclaimer
This idea does not constitute as financial advice. It is for educational purposes only, our principle trader has over 20 years’ experience in stocks, ETF’s, and Forex. Hence each trade setup might have different hold times, entry or exit conditions, and will vary from the post/idea shared here. You can use the information from this post to make your own trading plan for the instrument discussed. Trading carries a risk; a high percentage of retail traders lose money. Please keep this in mind when entering any trade. Stay safe.