This week, I've been experimenting with a method of anticipating creek cross moments across a number of securities. Of course, my intention is to create a reliable indicator to overlay on Wyckoff accumulations in order to understand where the high pressure domes of selling, which pin price down, exist and to recognize as early as possible when one of those zones has been crossed.
In Wyckoff, the creek has long been thought of as a meandering band which winds arbitrarily through the trading range, pinning the price below it. And, a strong cross above that line, usually with a long green candle is a sign that buying has overwhelmed selling pressure and a markup phase has begun. But, what if, in the age of algorithmic trading, there is a predictable rhythm to the formation of the creek?
WIth this tool, I'm using Sine Waves pinned to volume spikes (to determine wave length) and Fib Retracement (to determine amplitude.)
The three creeks being tracked here are:
Creek 1: Green -- This is the earliest creek established by a reverse fib extension drawn from the buying climax down to the selling climax. As you can see, once across this creek, the price ran to UT. Also note how it acts as a reversal indicator. If above this wave with diminishing volume, you can expect a reversal. I see this creek as a key area to cross early the week of Dec. 27th.
Creek 2: Red -- This resistance band is tied to the regional low (measured from the terminal shakeout spring from the previous trading range) & current high (marked UT). It has been pinning price lower and lower in the trading range and carried us toward the ultimate spring (which I mistimed with the path I drew yesterday.)
Creek 3: Yellow -- For this creek, I'm speculating that the move from the lower trading range may repeat. In that lower trading range, a fib pulled from the deepest spring to the apex of reaction out of it defined the lower yellow band. Once across, a retest propelled the price out of the trading range. So, here, I'm anticipating a similar uprise out of the spring formed on Dec. 23rd to a high near the bottom of the macro trading range (marked SOS on this chart) before a meaningful reversal. A cross and retest which sends the price up and out of this trading range would be a significant finding of this tool.
As always, this chart is open source. Please feel free to click "share" then "make it mine" in order to play with it for yourself.
In Wyckoff, the creek has long been thought of as a meandering band which winds arbitrarily through the trading range, pinning the price below it. And, a strong cross above that line, usually with a long green candle is a sign that buying has overwhelmed selling pressure and a markup phase has begun. But, what if, in the age of algorithmic trading, there is a predictable rhythm to the formation of the creek?
WIth this tool, I'm using Sine Waves pinned to volume spikes (to determine wave length) and Fib Retracement (to determine amplitude.)
The three creeks being tracked here are:
Creek 1: Green -- This is the earliest creek established by a reverse fib extension drawn from the buying climax down to the selling climax. As you can see, once across this creek, the price ran to UT. Also note how it acts as a reversal indicator. If above this wave with diminishing volume, you can expect a reversal. I see this creek as a key area to cross early the week of Dec. 27th.
Creek 2: Red -- This resistance band is tied to the regional low (measured from the terminal shakeout spring from the previous trading range) & current high (marked UT). It has been pinning price lower and lower in the trading range and carried us toward the ultimate spring (which I mistimed with the path I drew yesterday.)
Creek 3: Yellow -- For this creek, I'm speculating that the move from the lower trading range may repeat. In that lower trading range, a fib pulled from the deepest spring to the apex of reaction out of it defined the lower yellow band. Once across, a retest propelled the price out of the trading range. So, here, I'm anticipating a similar uprise out of the spring formed on Dec. 23rd to a high near the bottom of the macro trading range (marked SOS on this chart) before a meaningful reversal. A cross and retest which sends the price up and out of this trading range would be a significant finding of this tool.
As always, this chart is open source. Please feel free to click "share" then "make it mine" in order to play with it for yourself.
