To confirm our analysis we are looking for a consistent dominance of demand over supply. Volumes are low in general but up moves are supported by higher volumes (21 day average volumes) and pullback even lower volumes. Price spreads are widening with the up move evident in TDI above 50%. The reactions at LPS are on smaller spreads and diminished volumes. Price is at the top of the TR. LPSs in this phase are generally excellent places to initiate or add to profitable long positions. So look for a reaction at the 21 Day OF and 50sma to go long this week while waiting for Phase E to kick in.
Thanks. The ideas of Wyckoff seem to work well even for forex with only tick volume data.
Teekid
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Wyckof ? is that a person or someting?
SteynTrade
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Richard Wyckoff is a person that developed a theory of the markets in the early 1900. It is basically a broad market overview of distribution and accumulation using volume spread analysis. Even if the ideas are old the principles of supply and demand, cause and effect as well as effort vs results seems to work for forex.
Teekid
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well.tanks for this valuable information.SteynTrade. I will find someting more about this person. :-)
SteynTrade
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Nice thing about the old theories is there is lots of information around. Enjoy, it seems to be accurate in developing a longer time frame view of the market. I use other methods like @Ichimoku_Trader 's Panoptic Method to do the day to day trading.
Teekid
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Ichimoku is new for me.. it looks relibalbe. I plan to learn this method .... :-]
SteynTrade
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Yes, he has got super lots of education material on his page just click the education tab at the top. What is nice is although he uses Ichimoku he still trades the underlying market structure.
Teekid
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Sure..SteynTrade. you've been great help. hope u have a nice day..ha.