Wyckoff trading method, page-1469

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    Yes, it can be tricky, but it usually works OK (there are many VSA/Wyckoff traders in this end of the market....you just have to be more nimble, and not hang around in a position too long) ...... The biggest problem, especially with the very small cap or illiquid stocks, is the fluctuating levels of supply and demand, and the inconsistent trading approach of the retailers who are involved. eg- there will be low volume at a certain level, and then unexpected supply comes in at the same level, for no obvious or apparent reason.

    Generally , you want to see both the stock and the commodity trading and trending together in harmony.
    There are times when a stock can move up OK against an underlying commodities trend, at least for a while, however it is when both are trending in harmony is when the stock will trade the most consistent and (hopefully) with an 'ease of movement'.

    On your Gold producer question, if it was for a longer term accumulation yes (at least move it up with ease), but also remember that not all accumulations have to be 'full on' longer term accumulations......these pump and dumps that occur so often, are also the larger traders just making some 'bread and butter' at this end of the market (it is the larger longer term accumulations that are for the champagne and caviar). So there is some kind of shorter term accumulation phase, a fast markup in price to entice short term and momentum traders to become involved, and then sell into the demand they have created, all done and dusted in a few days or weeks........bit like pass the parcel to some extent.

    cheers
    Last edited by Jako8557: 03/03/17
 
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