Wyckoff trading method, page-1695

  1. 810 Posts.
    lightbulb Created with Sketch. 11
    Thanks for that, channels and trendlines are what I first looked for when analysing as it was fairly simple to read and I was amazed at how reactive they can be even over decades, however being a dynamic style I found them to be too flexible and unreliable, and too easily broken for any kind of strict trading, especially as price moved into what I now know as differing phases. These have for me definitely taken a back seat lately to structure, however trendlines can and do still impart a degree of force on price action inside and around that structure and I suppose I was asking about some stricter guidelines for location of starting points and I gues it works similarly when choosing bars for horizontal supp/res., the initial higher high etc.
    I do like the way David Weis uses channels and reverse channels to frame price action once a trend has begun and I can definately see that horizontal areas of support and resistance provide a much more fixed and reliable guide for price action. I do find it fascinating when one overrides the other due to its relative strength, ie. When a strong uptrend wins out over horizontal resistance in a breakout of a rising triangle or say when a strong buying climax breaks the overbought line of a weakening upward channel forming a area of horizontal resistance and the following reaction breaks the oversold line in response, while price may enter back into the channel to rest the area of resistance that breaking of trend support may be enough to stop the trend and move price sideways for a period.
    I noticed that breaking of the previous upward or downward stride also plays a part as one of the Wyckoff tests for Acc. and Dist.
    I had kept this as a screenshot but I think it came from Hank Pruden,
    Cheers, have a great day

 
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.