GBPUSD Weekly Chart Wyckoff Accumulation Events and Phases
Hello Traders,
TGIF all!
I observed a Wyckoff Accumulation Pattern on the weekly chart of GBPUSD and I wanted to share the event and phases of Wyckoff schematics.
Wyckoff(1873-1934) was a pioneer in the technical analysis of the stock market. At the age of 15, he started his job as a stock runner for a brokerage in NY. He observed the studies of JP Morgan and Livermore at his time and he arranged their practices into his technique and made them a method to analysis the financial markets. His influential approach to the market helped him develop his work and he founded a school that became Stock Market Institute later.
Wyckoff analyzed trading ranges and the power of the break-outs from that trading ranges. He studied phases and levels of price that moves in harmony, hinting analysts estimated price targets in a pattern.
Phase A describes the end of the down trend. Up to selling climax, supply exceeds demand that caused drop in the price.
Phase B means building phase of price action. Market participants want to observe a cause to buy an asset and may want to observe how fragile the assets valuation. In that Phase, While observing the assets, participants interest is not only observation but also low prices. Race to buy at a lower price establishes a trading range and creates a wave between going up to resistance and down to support line until the observation on diminishing the volume on down moves of the price. Low volume on price drop means, supply starts to fall down while demand stills.
Phase C is the phase that asset price goes through a hard test with the remaining supply. As seen on chart, Spring or Shakeout is the level that price moves below the support level and quickly turns back into the trading range while skimming the cream of sellers. That's a bull trap!
Phase D is the phase that demand starts to exceed supply which moves price higher with heavy volume. We should observe the price at least move to resistance line of the trend line in Phase D!
Price leaves the trading range in Phase E and demand takes the control of the price. We can observe some small trading ranges which are in favor of the price increase.
Lets see how this will result. Wyckoff's methods are still applicable today and love to see his contribution to financial markets.
Hope you all enjoy my work!
Please leave a like and comment of what you think.
Trade safe and have a nice Weekend!
TGIF all!
I observed a Wyckoff Accumulation Pattern on the weekly chart of GBPUSD and I wanted to share the event and phases of Wyckoff schematics.
Wyckoff(1873-1934) was a pioneer in the technical analysis of the stock market. At the age of 15, he started his job as a stock runner for a brokerage in NY. He observed the studies of JP Morgan and Livermore at his time and he arranged their practices into his technique and made them a method to analysis the financial markets. His influential approach to the market helped him develop his work and he founded a school that became Stock Market Institute later.
Wyckoff analyzed trading ranges and the power of the break-outs from that trading ranges. He studied phases and levels of price that moves in harmony, hinting analysts estimated price targets in a pattern.
Phase A describes the end of the down trend. Up to selling climax, supply exceeds demand that caused drop in the price.
Phase B means building phase of price action. Market participants want to observe a cause to buy an asset and may want to observe how fragile the assets valuation. In that Phase, While observing the assets, participants interest is not only observation but also low prices. Race to buy at a lower price establishes a trading range and creates a wave between going up to resistance and down to support line until the observation on diminishing the volume on down moves of the price. Low volume on price drop means, supply starts to fall down while demand stills.
Phase C is the phase that asset price goes through a hard test with the remaining supply. As seen on chart, Spring or Shakeout is the level that price moves below the support level and quickly turns back into the trading range while skimming the cream of sellers. That's a bull trap!
Phase D is the phase that demand starts to exceed supply which moves price higher with heavy volume. We should observe the price at least move to resistance line of the trend line in Phase D!
Price leaves the trading range in Phase E and demand takes the control of the price. We can observe some small trading ranges which are in favor of the price increase.
Lets see how this will result. Wyckoff's methods are still applicable today and love to see his contribution to financial markets.
Hope you all enjoy my work!
Please leave a like and comment of what you think.
Trade safe and have a nice Weekend!