My charts are setup initially to look for Wyckoff trend continuation patterns, such as re-accumulation and re-distribution, because in general it is better to trade "with" the trend rather than against it, but sometimes these patterns fail and lead to distribution, such as I think is the case for IP.
Ultimately it is tough to differentiate between a congestion (re-accumulation) pattern and a distribution pattern, if not impossible, until after the Sign of Strength (SOS). If there is a weak, low volume retest of the Spring (SP), then a continuation of the trend is more likely. But when the Spring (support) level is broken it then becomes the new ICE level indicating a strong chance of retesting the prior major support level. The entry we look for is a retest of this ICE level, known as Backing Up to the ICE (BUI), which is currently forming. Also, there is background weakness shown by a regular divergence at Secondary Test (ST) level, then increasing volume on the down wave to the Spring (SP) level, then hidden divergence at the Sign of Strength (SOS) level, then increasing volume on the Breaking the ICE down wave, and so far a weak rally back up to the ICE level.
Conservative entry would be a break of the Breaking The ICE (BTI) level, with initial stop above the swing high, initial target at the last major support level at $45.25, this gives a Risk:Reward ratio of 1:2.68, which is more than acceptable (generally greater than or equal to 1:2 is preferable, of course all traders are different and this is just my opinion).
Second possible entry would be after a new downtrend bar prints on the Weis Wave Indicator.
And finally, an aggressive entry would be the first LL bar during the BUI rally that we are currently in.
Note: there is a potential major support level at approx. $50, which has acted as significant resistance for approx. the last year. Also the major support level that is the target is also approx. the major support level of the trading range for the last year.
Comments
npatz_2000
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Thank you for the comment. Honestly, I am still learning the nuances of the Wyckoff method, but not all of the abbreviations are "true" Wyckoff. Some are my own names for patterns. Regarding where to go for information. There is a David Weis we binary that has some good info, honestly, the we binary is better than his book on the subject, in my opinion. The we binary is on youtube, search David Weis Wyckoff. Also the Wyckoff golden gate university we binary on YouTube is also good. The website, readtheticker.com "Richard Wyckoff" is the most abundant on the Web for "free" info. The book "The Complete Guide to Volume Price Analysis" by Anna Coulling is probably the best book on Wyckoff and volume that I have read. But if you have any specific questions you are welcome to message me. Oh, I would stay away from Volume Spread Analysis in my opinion. The method is designed to sell their software and has about 100 different signs of strength and weakness each. Good luck.
ofirr39
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Thank you i will check it all.
I was started to mimic your strategy on others stock, its realy amazing how the indicator is not lagging like Macd or Stoch.
Sure ,i have a lot of question... LOL
Thanks a lot
Ofir
npatz_2000
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Error in my last message. "We binary" was an autocorrect error I didn't catch, the real word is webinar. Sorry for the confusion. Ask any question you like, just keep in mind that I am still learning also. The weis wave is really just an attempt to capture price waves, so it doesn't lag in the traditional way that other indicators do. It simply adds up the volume for that wave. I like it a lot, it is an objective way of identifying price waves.
ofirr39
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Hi npatz,
Im very impress from your way to analize the stock price with wyckoff strategy.
can you please guide me where i can learn more about the meaning of the letters and the system.
Is this www_LB indicator is accurate doing his job.
Thanks,
Ofir