This week’s “Wednesdays with Wyckoff” lesson gives us another colorful description of an important trading principle – that of supply and demand. The lesson this week comes from Richard Wyckoff’s Studies in Tape Reading and explains how we can visualize supply and demand – absorption and distribution – in the context of a short-term move….
A reader recently asked me if we had a “Kick-off” Signal in Harley Davidson (HOG) and indeed we did – with powerful follow-through as anticipated. The entire event gives us a great lesson in the Kick-off Reversal Signal, with the special emphasis on two-timeframe confluence support (on a retracement) where the Kick-off Reversal Signal formed…
When learning to trade certain patterns or trade set-ups, it’s best to start with “ideal” real-world examples to understand the logic of the set-up. Doing so allows us to recognize similar patterns or set-ups in real time as they develop, which calls us into trading action (entry, management, exit). Crude Oil recently (June 28) gave…
It’s time for another “Wednesdays with Wyckoff” Lesson! If you’ve been following along, you know that Richard Wyckoff – an early technical analysis thinker – often mixes entertaining if not colorful imagery into his practical lessons about supply/demand and stock market movement. Today’s lesson is no exception! In his Studies in Tape Reading series of…
Intraday traders must take into account volatility cycles when using the TICK intraday for trading decisions. An intraday TICK reading of plus or minus 1,000 – often a trading entry or exit signal for some traders – means different things at different times in terms of the volatility cycles of both the market (high or…
There seems to be a clean pattern repeating itself today that developed exactly one year ago which I’m finding interesting. Let’s take a look at the pattern then, compare it to now, and over the next few weeks, see if the current future pathway of the pattern plays out as it did back in July…
Ever since observing positive momentum and internal divergences at the 1,260 level (200d SMA), the upside target for the S&P 500 has been a retest of the 1,300 level. One could say the test happened today, and the current structure reveals now a negative internal (and momentum) divergence situation into this target resistance level, giving…
In his writings, Richard Wyckoff has a penchant for colorful imagery that makes it more fun to learn the concepts than a standard academic textbook. Today’s entry in the “Wednesday with Wyckoff” educational series includes one of his more colorful descriptions of how a trader should adopt a calm mindset and react to opportunities as…
Do you know how to quantify price structure? It’s not a difficult concept at all, yet many traders miss the benefit of taking a moment to assess objective price structure in the context of a developing trend. Doing so allows you to assess objectively the next likely swing, and thus the most probable trading strategy…
Switching gears for this week’s “Wednesdays with Wyckoff” series, Richard Wyckoff not only contributed insights into the trading community, but also the broader investing world. This week’s update focuses on Wyckoff’s Six Factors he used for selecting a stock to buy as an investment, and they are as follows: 1. The Longer Term Trend of…