Australia's largest stock trading and investment forum Australia's #1 stock forum

Wyckoff trading method, page-1104

First 1104 Last

Share
Profile

Follow
Beany72

3,285 Posts.

5

25/10/16

22:42

Post #: 20118401
Share

Originally posted by Jako64 ↑

Yep, you have called the individual bars correctly, but the context is an uptrend, and checkout how many upthrusts there are in that uptrend recently.
I think this stocks personality (or the traders behind it, who give it its personality) is possibly to use this type of trading to their advantage.

The two upthrusts you mention don't have much volume behind them, and an upthrust is normally a confirming indicator of previous weakness (apart from when it has very very high volume). And the trend is generally up, so I would guess that those two bars are maybe what I call absorption bars (price action which is attempting to suck out and absorb supply, clearing the way above, and the low or temporarily unsupported close is to flip out short term traders at the same time).
So even if enough supply is drawn out to cause price to pull back, it may only be a shallow pull back (similar to the previous upthrusty bar on 22nd August, and the subsequent trading), otherwise I expect there is a decent chance price will defy regular thinking and continue higher.
Perhaps the lower close today does suggest there will be some downside, but I think it is unlikely to be terminal weakness.

I guess we'll find out soon enough.......

View attachment 307607

cheer

Expand

Originally posted by Jako64 ↑

Yep, you have called the individual bars correctly, but the context is an uptrend, and checkout how many upthrusts there are in that uptrend recently.
I think this stocks personality (or the traders behind it, who give it its personality) is possibly to use this type of trading to their advantage.

The two upthrusts you mention don't have much volume behind them, and an upthrust is normally a confirming indicator of previous weakness (apart from when it has very very high volume). And the trend is generally up, so I would guess that those two bars are maybe what I call absorption bars (price action which is attempting to suck out and absorb supply, clearing the way above, and the low or temporarily unsupported close is to flip out short term traders at the same time).
So even if enough supply is drawn out to cause price to pull back, it may only be a shallow pull back (similar to the previous upthrusty bar on 22nd August, and the subsequent trading), otherwise I expect there is a decent chance price will defy regular thinking and continue higher.
Perhaps the lower close today does suggest there will be some downside, but I think it is unlikely to be terminal weakness.

I guess we'll find out soon enough.......

View attachment 307607

cheer

Expand

I am hoping to get another test around $0.92.
I executed my trade on the test bar at $0.955 and was stopped out at $0.965 having set my stop a tick below the close of bar 2 with the appearance of the dirty upthrust.
When/where would you be placing a buy order? Taking into account trades need to be conditional for someone like me.
1 Upvote

Reply

Top Stories

MIN

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

History-making uranium sample grades and an imminent drill run. Infini Resources is poised to transform in 2025

WC8

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

Chaos reigns markets – so let's take stock of where we're at ahead of December

ACW

This biotech stock raised $11M in a risk-off environment. Its Alzheimer's drug could change the game

There are more pages in this discussion • 1,355 more messages in this thread...

First 1104 Last