Wyckoff trading method, page-1897

Hi Beany,

I suspect that Jako's been busy lately, but he always does his best to assist, as you know, and no doubt will share his thoughts.

On RXP, I had a look at the fundamentals and they do good good.

On the chart, posted below, you can see the price at an interesting junction. Again, patience is needed here.

What I've done (and I apologize to Jako and the Wycko friends) is not so much to do with the Wycko method that this thread covers but a different approach which can be useful when one is in no man's land, undecided and perhaps loosing one's patience.

This is a Weekly chart - good for a longer term overview.

Looking at the past, there is a pretty well defined Trendline and the price is nowhere near it; it may take around 6 months to get there.

Naturally it may see-saw as it does and give false hopes.

One way I have used in the past is to pluck the 2 MAs, 20 and 50 and use them as a guide.

In the example of RXP, note that in 2016 the 20MA was above the 50MA and then the Price retraced below the 20MA.

Then it touched and respected the Trendline (well, the Trendline after that is stronger but you could have placed it before this). In any case it did respect a Support line (also marked on the chart). Another hint.

The Price them moved up and Closed above the 20 MA in July 2016. 5 months later it had reached $1.08 and shortly after you could see the price breaking down and indicate that you should take profit.

I think it was Master Redbacka that said that the Price always comes back to the MAs. So we need to wait for the Price to close above the 20MA, on the Weekly, as this is still above the 50, but it needs to be above it.

Hold your fire Beany but get ready

PS - I'm hopeless; I keep swearing that I should not post so much but here I am again. Time for another visit to the shrink.

Cheers,

soccer