This idea aims to smooth out some of the points in the phases with new labels minus my consumption induced ramblings.
PHASE A - ACCUMULATION ----------------------------------
PSY - Preliminary Supply The first peak is the Preliminary Supply or PSY, which is where some retail traders start to sell
BC - Buying Climax Around this time inexperienced investors start to come in and this causes the Buying Climax or BC shortly after the PSY
AR - Automatic Reaction This is where institutions start to sell their assets to the newcomers, and this is the Automatic Reaction or AR price tip.
ST - Secondary Retes After some time, the institutions will ease off some of the sell pressure and the market will spike back up to form the Secondary Retest or ST, which is usually just below the BC retail rally.
PHASE B - MARKUP ----------------------------------
As with Phase A of the accumulation, pattern institutions will occasionally push up the price to keep retail interest and confidence high while they secretly sell.
SOW - Sign of Weakness
UT - Up Thrust
PHASE C - DISTRIBUTION ----------------------------------
In Phase C of the distribution pattern, we see something called the Upthrust After Distribution or UTAD.
UTAD - Upthrust After Distribution Whereas the spring is meant to shake out the retail investors, the UTAD is meant to get as many retail investors to buy in as possible through the fomo it causes. Institutions start to aggressively sell to these investors causing the price to fall. This price collapse continues in Phase D of the distribution pattern.
PHASE D - MARKDOWN ----------------------------------
The brief pause in the drop is marked by the Last Point Pf Supply or LPSY and is followed by a Sign Of Weakness or SOW, which falls below the support line drawn by the automatic reaction.
LPSY - Last Point of Supply
SOW - Sign of Weakness
PHASE E - END/START ----------- Phase E of the distribution pattern usually blends with phase a of the accumulation pattern, which readies the market for another run-up.
Nice chart! I like playing the weekly swings. The June bottom to the August high was actually a +200% move for MATIC.
louistran_016
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Interesting take, this chart indicates a rally to 40K range in 2022 is entirely possible before the actual capitulation to 12K in 2023
SPYvsGME
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@louistran_016, Wyckoff phases suggest after LPSY in Phase E (end of chart) is followed/merged with the next accumulation phase starting the cycle again.
Kobe824
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@SPYvsGME, need to retrace to 2020 lows before markdown completes.
SPYvsGME
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@Kobe824, ok. I'll update the next chart. I liked the symmetry on the slanted idea.
JoeChampion
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Possible Senario, i have similar bias!
bsw4650
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Here to follow. Like the idea. Do you think 7k is really possible? I was going to load up at 16
qentin_71
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Possible scenario will see in the 2024
QQQ_on_Twitter
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Love the idea, but you need to extend the timeline (: