80 1 0
Anyone who follows me can see that I am a student of Wyckoff, and this setup is (in my opinion), an ideal secondary test ( ST             ) entry. We have a selling climax ( SC             ), followed by an automatic reversal (AR), then a secondary test ( ST             ). Now anyone who has read Wyckoff knows that he didn't favor these types of setups, because he preferred to speculate during the mark up and mark down phases, not during the accumulation and distribution phases. Why? Because there is always the chance that the bounce is short lived and the downtrend continues or we trade in a nowhere trading range for an extended period of time. Who am I to argue with this legendary trader. So to keep this in mind, these trades can offer some of the very best R:R ratios available, but we as traders have to be quick to get out if they don't go our way immediately, but when they work they can be very fast and large. So in this trade I would scalp 1/2 to 3/4 of my position at the most recent swing high, and leave a runner for the other two targets. Keep in mind that we could see another test of the lows in the form of a spring, but with the very large volume and gap down on 2/12/15, plus we are sitting on the bottom of the lower bear channel , I think that this "could" be a very explosive move up to the top of the upper bear channel line if a short squeeze occurs (if the sellers rush to cover their shorts in large numbers adding to the upward momentum). Good trading.
Correction, not a spring, as noted in the title, simply a secondary test, but on "spring-like" volume.
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out