This is a similiar educational publication to the previous one posted of USD/CAD (linked underneath) but with actual point and figure charts for you to see.
Wyckoff analysis to calculate TP/target out of a range involves using a 'point and figure' chart. Reliability of these calculations are based on past accuracy when used in the current market - backtesting, if you will.
In order to test where price may end up as a target, we can find a previous consolidation range and see how accurate it's point and figure chart settings/sizings are.
The accumulation range marked up on the left has a TP range at the top of the chart in blue. As you can see, this was incredibly accurate. The same settings (close, 0.0005 box size, 3 box reversal) were used to calculate a target for the current accumulation markup. This has been drawn with another blue box on the right hand side above the long position shown.
Time will tell how accurate I am again. Minor inaccuracies in this method of TP calculation will occur between/for all Wyckoffians due to factors including but not limited to: counting columns in 'point and figure' counts, differences in range behaviour and differences in number of supply/demand lines in ranges, fundamental shifts etc. Wyckoff's TP projections are to be seen more as a 'guideline' than a hard and fast rule.
Any questions are welcome.
Comments
pimpcrypto83
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Can you please explain how you count boxes ,i see you are starting to count when acc. fase is over but to what why to red candle to the right and not green one?, newby here, thx for help
watter11
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you expecting it to go bullish by the news?
AbsS
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@watter11, Which news in particular are you referring to? Thursday's GDP estimate?
watter11
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@AbsS, i dont know, i though you were expecting it to go bullish bevause of some kind of news.
AbsS
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@watter11, The bullishness is due to the evidence of GBP being accumulated; hence the consolidation range analysis. As you can see in the left side range, it was being accumulated well before the election news that shot it up wildly. These accumulations take place before major events quite commonly, but not necessarily in a correlated relationship.