Wyckoff trading method, page-1286

First 1286 Last

Share
Profile

Follow
Brumbypat

914 Posts.

7

14/12/16

07:34

Post #: 21318089
Share

Originally posted by Jako64 ↑

Good Job @Brumbypat,

yes I pretty much understand what you can see, & agree with that, although I would call it absorption (of supply), as opposed to accumulation, but in the end they are very similar processes, and it is just a difference in terminology.
The first two zones are part of the absorption or accumulation process for sure I reckon.
However the last one is more like a series of (violent) pullbacks and shakeouts, probably to encourage any holders waiting above, that may be inclined to sell, to do so, which will help to clear the way for a breakout above the previous three highs, (can you see those three adjacent highs between ~$5.00 and $5.34 ??, any supply waiting there intending to sell is encouraged to sell by that vigorous up/down price movement. And when that potential supply has been removed, it is far easier & cheaper for price to accelerate upwards without having to negotiate the seller's who were waiting above).

Finally, while gap theory is not part of the Wyckoff or VSA education, it would appear that gap is a 'breakaway' gap, which has a much reduced fill rate (but is not zero). So there is an increased chance it may not be filled.

Good job on the T/A

cheers

Expand

G'day Jako, hope the break is going well.
Just keeping an eye on CKF for signs of weakness now. SP went up since my last post as you mentioned it might, but are we looking at an upthrust in the bar two days ago?
Daily volumes are falling this past week, though still around average for the last couple of months.
Could potentially be another set of absorption bars also, as yesterday's bar showed some buying support to close near the open?
1 Upvote

Reply

Top Stories

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

ACW

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

MIN

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

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

WC8

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

There are more pages in this discussion • 1,173 more messages in this thread...

First 1286 Last

Wyckoff trading method, page-1286

Top Stories

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

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

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

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

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