Australia's largest stock trading and investment forum Australia's #1 stock forum

Cheers @Incongruous - have I ranscribed your lines correctly? So...

First 1790 Last

Share
Profile

Follow
gypaetus

1,270 Posts.

21/04/17

00:06

Post #: 24181641
Share

Originally posted by Incongruous ↑

View attachment 551382
I'll try a rough explanation. There's more to it like choosing box sizes etc.
Here's the XJO. The X's are demand (up) and the O's are supply (down). It's like a game of footy. One side has the ball and runs with it, then the other. The stronger one travels further and surpasses the other creating a breakout in a direction. I've used a box size of 50 points and a reversal of 3. That means it has to reverse 3 x box size or 150 points in the opposite direction to start a new column.
In Wyckoff, PnF is one way to measure cause and effect. I programmed this into my charting application to do it for me. The green vertical line and the red vertical line span some cause — a consolidation or trading range. The red horizontal line is the last point of supply and the green horizontal line is effect — the estimated price move. The XJO was almost there.
You can also use 45 degree lines to draw trend channels. Wyckoff wrote about it in his course. There are also some good books on it by Du Plessis or Dorsey.
Hope that helps.

Expand

Cheers @Incongruous - have I ranscribed your lines correctly? So from here once the price breaches the green line you are now expecting the price movement to change direction and trend down for a period?
Upvote

Reply

Top Stories

MIN

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

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

PME

Pro Medicus signs landmark $330M deal to roll out imaging platform in US hospitals

WC8

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

There are more pages in this discussion • 669 more messages in this thread...

First 1790 Last