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Many traders have heard about the Wyckoff method and the Wyckoff trend analysis. In this article, we help you understand the different Wyckoff concepts and we share tips on how to include the Wyckoff analysis in your trading.
Wyckoff 101 – Introduction
At the core of the Wyckoff method are the different trend and market phases which the graphic below shows:
This is where the previous downtrend stalls and the price just moves sideways. At this point, it’s impossible to know that the downtrend is actually over.
The spring marks a failed breakout to the downside and, therefore, also a failed downtrend continuation. Now, the trader can be fairly certain that the previous downtrend is not going to continue.
On the breakout, out of the accumulation zone, the price starts the new uptrend.
The uptrend slows down and enters a distribution phase. Here, the buyers from the previous uptrend are selling and the “big players...
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