Things are sometimes unclear in the real world for periods of time.......text books and in hindsight, things can make appears so 'clear cut'.
I have been following this one for a while now.
I suspect that there is someone, or a group, who are reducing a position, and are selling into the demand that is present.
And at the same time there is continuing demand for this stock, so we have some opposing forces at the minute.
It appears this might just send the stock sideways until the selling is completed.
So keep an eye on that breakdown line for now.......and if it breaks down below that, it may become a more significant event.
When this happens the stock is sometimes said to be 'consolidating the recent gains'.
At this point you just have to wait, watch and see if it turns out to be a high which eventually breaks down and it becomes a distribution zone, or if the sellers have their stock absorbed over time, and price then breaks out from the sideways range and continues higher, which will then show it to be a reaccumulation zone.
Generally, if you are already in the stock, some trade management should keep you out of trouble, perhaps sell a few at the highs of the range, and if you choose you can buy them back if/when it breaks out again.
And if looking for an entry, either accumulate at the lows of the range where risk is lowest, or wait to see if it does breakout, and either buy the breakout of the range, or buy the test of the breakout (or half and half, or some percentage.....).
Does that make sense.......hopefully.....
cheers
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