BTCUSD 05 DEC 2020 (recent Wyckoff phase analysis) Schematic 2
Accululation schematic 2. You can see the textbook phase development from a recent re-accumulation into mark-up
Starting on the left you can see the preliminary support/stopping volume/selling climax which is how trading ranges start. A support is established on high volume.
The Automatic rally (AR) is the initial establishment of resistance. It is important here to make note of the supply/sell pressure. If the sell pressure is high here, the market (automation) will read the market as if there are still sellers (supply). In order to minimize the amount of sellers in the market, the CO/SM may stay in this training range for hours, days, weeks... as long as it takes to get you to sell your bags.
You are dealing with automation. It does not need to eat or sleep and has one objective and ONEE OBJECTIVE only... to take your money.
Price will oscillate in this trading range -accumulating- .. buying low. Who sells low? Retail.
SM/CO BUYS LOW and SELLS HIGH.. there is no exception to this. This is a rule you must take on yourself, which is appropriate since that is the objective of professionals.
Phase B-the "supply/demand" phase.. is an area you want to avoid. During this phase you will notice price erradically moving up and down with no ryme or reason. This is a common area for retail to enter and then immediately find that price refuses to move. This can really push your tolerance and patience. This is where you start to wonder if you risked too much.... This is the market shaking out weak hands getting retail to sell their bags.
A lot more to it but a good rule of thumb is to avoid phase B entries at all cost.
Depending on the supply/demand situation you may or may not get a "spring". A spring is a fake out below support that hits high volume driving price back into the trading range. Schematic 2 does not a spring or terminal shake out
For a more thorough/academic explanation please refer to any or all of the free following:
Sources of education:
Richard Wyckoff
Tom Williams Volume spread analysis VSA/ Master the Markets
Pete Faders VSA*
Read the ticker dot com
Wyckoff analytics
Dee Nixon
Avoid buying into weakness/supply/resistance
Avoid selling into strength/demand/support
Avoid entry when price is in middle of a range (phase B)
Starting on the left you can see the preliminary support/stopping volume/selling climax which is how trading ranges start. A support is established on high volume.
The Automatic rally (AR) is the initial establishment of resistance. It is important here to make note of the supply/sell pressure. If the sell pressure is high here, the market (automation) will read the market as if there are still sellers (supply). In order to minimize the amount of sellers in the market, the CO/SM may stay in this training range for hours, days, weeks... as long as it takes to get you to sell your bags.
You are dealing with automation. It does not need to eat or sleep and has one objective and ONEE OBJECTIVE only... to take your money.
Price will oscillate in this trading range -accumulating- .. buying low. Who sells low? Retail.
SM/CO BUYS LOW and SELLS HIGH.. there is no exception to this. This is a rule you must take on yourself, which is appropriate since that is the objective of professionals.
Phase B-the "supply/demand" phase.. is an area you want to avoid. During this phase you will notice price erradically moving up and down with no ryme or reason. This is a common area for retail to enter and then immediately find that price refuses to move. This can really push your tolerance and patience. This is where you start to wonder if you risked too much.... This is the market shaking out weak hands getting retail to sell their bags.
A lot more to it but a good rule of thumb is to avoid phase B entries at all cost.
Depending on the supply/demand situation you may or may not get a "spring". A spring is a fake out below support that hits high volume driving price back into the trading range. Schematic 2 does not a spring or terminal shake out
For a more thorough/academic explanation please refer to any or all of the free following:
Sources of education:
Richard Wyckoff
Tom Williams Volume spread analysis VSA/ Master the Markets
Pete Faders VSA*
Read the ticker dot com
Wyckoff analytics
Dee Nixon
Avoid buying into weakness/supply/resistance
Avoid selling into strength/demand/support
Avoid entry when price is in middle of a range (phase B)