Wyckoff.
In this article we will look at a simplified version of Weikoff. They are completely based on the diagrams you saw in the last tutorial, but many people get confused because of the large number of phases and designations. I will attach the original version and then the simpler version.
Let's start with the most popular accumulation scheme. There are two versions of it, but this one is the most popular from the practice of using it on cryptocurrency. The biggest problem with using this tool is the large number of phases and symbols, most traders try to match their charts 1 to 1 with the picture. You will rarely find a perfect resemblance, so we will not be guided by it.
Let's start by looking at the scheme from a logical point of view. We have an edge with false outs on both sides to remove liquidity. The spring point can be considered as a deviation to set the position in the opposite direction. I make this comparison to make it easy to remember the scheme. The key factor should be that the price comes into accumulation after the downward movement to form a new force.
This is a simplified movement pattern. The most interesting point for me is in the spring zone. I do not work within the boundaries.
For entry I am interested in the red zone. If we take this example at 4-12-24h, then there may not be its retest, because the spring zone gives a very powerful reaction. Why exactly from this zone? It is possible to determine the spring only preliminarily and in the moment it is impossible to make a complete conclusion without a bounce, otherwise you will get into a simple structure breakdown. That is why I wait for the retest or skip the trade and consider only the exit.
In life, as you can see, the payoff is not so beautiful, especially in the example of cryptocurrency.
If you work on ltf, I am interested in an even more simplified structure, because at 5 min tf, it is not enough time to make a decision, so I am guided by this scheme.
This is the best option to use under the scalp position on the LTF. When using this structure - I do not consider accumulation by phase, I am interested in the schematic design.
In the presence of a spring point I want to see the formation of a divergence. The divergence should be on the same TF as the formation of the structure, not lower. Also the point spring can be externally positioned as SFP, which in compatibility with the divergence gives good results if we consider spring as an entry point. It is also possible to find the spring point by looking at the demand for the price. If after a move down the reaction is weak and the price begins to flat, slowing the movement, we can expect one more move lower, as the final point gets a sharp bounce and price reversal.
Like any other pattern, Wyckoff requires confirmation. If at its initial formation it was not possible to detect accumulation - close attention to the broken structure and the pullback to open a position on the retest. The only stage in which you can monitor the volume is the exit from the trading channel, in which there was an accumulation. It is accompanied by high volume on the breakdown.
This method was originally devised for use with volumes. I do not use them at all, it is a personal interpretation, which I am not encouraged to use. .
This scheme I do not like to use in the early stages, as it is rarely possible to identify their difference with the first. At early entry, when the structure is not formed, because potentially spring can appear. Therefore, this scheme I consider only for entry in phase C or D. As already said before that the accumulation occurs in the form of a rank, the LPS points are often taught to the zone of 0.5 rank. From their retest and I consider the entrance.
I don't pay much attention to this scheme, because its structure is almost identical to the usual Renge and its classification by points and phases doesn't give significant clues.
Interest only in the UTAD and SOW zones. Why ?
Short stop, triggering a stop breaks the structure as a whole. SOW is more reliable, because at the final stage of building the structure. SOW is the optimal entry point when using both schemes. As you have noticed, I use these schemes on the edge side, which is probably incorrect, as the key role in the volumes. I attach additional material.
