Wyckoff Accumulation:
SC: Selling pressure usually climaxes and heavy or panicky selling by the public is being absorbed by larger professional interests at or near a bottom. Often price will close well off the low in a SC, reflecting the buying by these large interests.
AR: Automatic rally, which occurs because intense selling pressure has greatly diminished. A wave of buying easily pushes prices up; this is further fueled by short covering. The high of this rally will help define the upper boundary of an accumulation TR.
ST: Price revisits the area of the SC to test the supply/demand balance at these levels. It is common to have multiple STs after a SC.
This is the bullest picture I can paint right now.
I'm looking for signs now of accumulation with an increase in buying volume and a reduction of sell pressure. I am also looking for reduced effectiveness of sell pressure as we build from the ST in Phase B.
Negatives:
Targets would now be a break of 6260 with a pullback, then a steady increase up through to the 6.7 range before revisiting lows.
Be careful trading this range. We are still expecting to see downswings. Any move below the low of 5750 would invalidate this accumulation approach and I would begin plotting from ST B. becoming the SC.
SC: Selling pressure usually climaxes and heavy or panicky selling by the public is being absorbed by larger professional interests at or near a bottom. Often price will close well off the low in a SC, reflecting the buying by these large interests.
AR: Automatic rally, which occurs because intense selling pressure has greatly diminished. A wave of buying easily pushes prices up; this is further fueled by short covering. The high of this rally will help define the upper boundary of an accumulation TR.
ST: Price revisits the area of the SC to test the supply/demand balance at these levels. It is common to have multiple STs after a SC.
This is the bullest picture I can paint right now.
I'm looking for signs now of accumulation with an increase in buying volume and a reduction of sell pressure. I am also looking for reduced effectiveness of sell pressure as we build from the ST in Phase B.
Negatives:
- There are some major concerns with this approach. The support at 6.1 that should have been established from the SC didn't hold with any conviction. 5.8 provided a far stronger level to manage, with a very strong rejection and spring.
- Our STs have occurred well below the SC, a level I would hope to be tighter than it was.
- Volume is still high on sells.
- SC could still be seen as the ST B.
- Fit within the accumulation model is relatively strong.
- Buying volume has increased and the ST B. was immensely effective.
- SC fits well within the brief.
Targets would now be a break of 6260 with a pullback, then a steady increase up through to the 6.7 range before revisiting lows.
Be careful trading this range. We are still expecting to see downswings. Any move below the low of 5750 would invalidate this accumulation approach and I would begin plotting from ST B. becoming the SC.