Wyckoff trading method, page-1320

One thing I liked from David Weis were his explanations about contraction and expansion. Contraction displayed by a clustering and reduced volatility followed by a violent breakout in either direction. It seems very pronounced on that two-hour IAM chart. Building cause for the next burst, one way or the other.

Successful tape reading is a study of Force; it requires ability to judge which side has the greatest pulling power and one must have the courage to go with that side. There are critical points which occur in each swing, just as in the life of a business or individual. At these junctures it seems as though a feather’s weight on either side would determine the immediate trend. Anyone who can spot these points has much to win and little to lose.
- Richard Wyckoff