Priority #1: Check the Money Flow Index (MFI) on the 1-Hour chart. And be flexible on bedtime.
The market breathes in and out everyday. Some people introduce terms like "Wyckoff distribution" and "Wyckoff accumulation." Maybe Wyckoff patterns are just market breathing patterns.
Institutions have a tricky time trying to buy or sell while the market is going up and down everyday with retail traders.
They're experts on how to do it while making money.
Make MFI a higher priority than Bollinger Bands, drawing triangles, wedges, etc. All of those patterns are helpful for the same reason. They point out areas of contraction = areas of reduced volatility. When bands squeeze, volatility reduces. When bars get wedged into triangles, volatility reduces. Same thing.
But the MFI shows us the reason why volatility reduces: the money flow is too high (diminishing returns) or too low (diminishing risk) when adjusted for historical volume.
And with that information, we can go long or short everyday with great accuracy in "Wyckoff pattern" markets. We can act on the information that the professionals are acting on.
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Retail is piling into Ethereum today at $2700. Yet we are at the top of the MFI chart, which is exactly the wrong place to go long.
It's the place with the most risk and the least returns. And to make it worse, it's the place that the institutions target for shorting. It's like swimming with the sharks with bloody meat in the water.
And the sharks are getting less generous. They're getting stingy. Only 100 million ETH.USDT was bought this afternoon on Binance.
YouTube is all confused: the bull market is back!
The sharks will smell and sell...probably one night when we're all sleeping.
When we fall to the bottom of the MFI chart, a lot of people will be taken by surprise. This may be the blow to mass morale that takes us below $2000 again. Huge falls always take place at the top of the MFI chart. Not at the bottom.
That's what happened on March 19th. We fell from the top of the MFI chart to the bottom.
When that happens, go long. What a paradox! It's called being "smart money." But don't forget we are in a bear market.
This is great! Thank you!! Also, where did you get the indicator that shows the “block buys”??
EricWentToMoon
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Actually im put it on chart if you wanna see it ... i think beside that i can see a double bottom. and a triangle at same time on 4 hour time frame
market moving mad this week . if we could get this wyckoff #2 conformation on Phase D before phase C for sc leg uptrend that would be awesome :)
ClearOpenDoor
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Magnificent! Will be using this a lot in the future. Trying to better understand this MFI, how it relates to volume and how that drives the market cycles. This could be the missing piece of the puzzle I have been looking for!