WYCKOFF TRADING PRACTICUM COURSE

11.12.2019

Next WTPC webinar sessions in November:

November 19 and 26 at 3:00-5:30pm PST

Homework submission: All homework assignments should be submitted in ONE file per person in .pptx, .pdf or .doc formats.
Please include your first name and the first letter of your last name in the homework file name, e.g., “Thomas B_WTC
Homework 1”. All assignments should be submitted to wyckoffassociates@gmail.com with the email title WTC Fall2019-
Homework# .
Students who would like to participate in discussions should have a working headset with a built-in microphone.

Announcements
November Special: Momentum and Volume and Price Structures; 11/14 and 11/21 at 3 pm PST

Session 10 1. Bias Game

SELECTION 2. Anatomy of a Trade (TTD)
3. Q&A
4. Market Update
5. Exercise #7

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 WYCKOFF TRADING PRACTICUM COURSE

Disclaimer
This presentation (including the lecture, slides and discussion) is for informational and educational purposes only; it should not be
construed as investment advice of any kind. Roman Bogomazov (Presenter) is not a registered investment advisor or broker-dealer, and
does not purport to recommend or suggest any securities to buy or sell. Presenter assumes no responsibility or liability for your trading
and investment results. You understand and acknowledge that there is a very high degree of risk of financial loss involved in trading
securities and that you alone are responsible for your own trading and investment decisions and results.

It should not be assumed that the methods, techniques, or indicators presented will be profitable or that they will not result in losses. Past
results of any individual trader or trading system published by Presenter are not indicative of future returns by that trader or system, and
are not indicative of future returns which will be realized by you. In addition, the indicators, strategies, articles and all other features of
Presenter's products are provided for informational and educational purposes only and, again, should not be construed as investment
advice. Accordingly, you should not rely solely on the Presenter’s information in making any investment. Rather, you should use the
Presenter’s information only as a starting point for doing additional independent research in order to allow you to form your own opinion
regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any
investment.

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE
RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND DO NOT INCLUDE BROKERAGE AND OTHER FEES, OR SLIPPAGE.
ALSO, IN SIMULATED PERFORMANCE RESULTS NO TRADES HAVE ACTUALLY BEEN EXECUTED, AND THEREFORE THE RESULTS MAY HAVE
UNDER- OR OVER-COMPENSATED FOR THE IMPACTS OF A VARIETY OF MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED
TRADING PROGRAMS, IN GENERAL, CAN ALSO BE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT
ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.

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 WYCKOFF TRADING PRACTICUM COURSE

BIAS GAME

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 BIAS GAME #24: ACCUMULATION OR DISTRIBUTION?
Vote on @wyckoffanalysis

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 = CO Activity
= Supply emerging = Demand emerging
BIAS GAME #24: ACCUMULATION OR DISTRIBUTION?
= Institutional Value Zone (Buying) = Reverse Trend Line

= Institutional Value Zone (Selling)

Vote on @wyckoffanalysis
Texture 1 Texture 2 BC |A| Texture 3 Texture 4 |B| Texture 5 |C| Texture 6 |D| Texture 7 Texture 8

B26 B27 B30

B34 #5: Price never makes it near the original BC B57
SIMON B23 B24 RA6
B37
B38
resistance line, from B54 price then
deteriorates creating LH’s and LL’s.
B54
RA18
ST B36
RA7 B53 RA17 B59
B61
RA8 R17

#1: We see CO selling RA9 RA19

R5 O7 R6
into strength. RA5
B20 R18
R8 R16 B55
B19 B25 B41 B56
R9 RA10 B44 B47 RA16
B18 R7 B58 R19
B28 O8
RA11 RA12
B49
B16 B39 RA13 RA14
RA4 R4 O6 B35 B60
B22 B33
O5 B15 RA15
AR R10 R11
B21
B29 B32 R12 R15 #4: Although RA16 rally
B14 B40 R13
B31 B52 looks strong, it’s on the
B4 R3 B42 lowest vol – so will not
RA3 #2: We see CO selling B43 R14 B51 travel far.
B5 B11 B17 B48
on the way down in R6
O4 B46
B3 B6 and again in R7. B45
Q2: With a rally with falling vol, how do we
B50 identify an EOM to the upside vs a weak rally?
RA2 #3: After CO selling we don’t see price recovery and
price makes LH and LL’s – although there is limited
B13
movement to the downside in the downsloping TR –
RA1 Q1: I interpret B28, B29 and B31 as buying by we can’t forget the background context.
R1 R2 CO – is this correct?
O3
B12
O2
B7
B8 B10
B9
O1
B1 B2

S↑↑ S↑↑
D↑ D↑

Sa↓
Sc↓
S2↓ D1↑ Sb↓ S2↑
S1↓
S1↑ D2↑
D3↑
D1↓

Simon’s Homework WTPC Session 9 5

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 TJX (DAILY) Accumulation
TJX Cos., Inc.
WYCKOFF STORY #24

#1 Increased Supply on the

Change of Character (CHoCH)
Major Sign of Strength (MSOS) in conjunction with quick price
Phase |A| Phase |B| Phase |C| Phase |D| recovery off the lows of the
Automatic Reaction (AR) and
Buying Climax (BC) Minor Sign of Secondary Test (ST) suggest a
Secondary Tests (ST) Strength (mSOS) consolidation with a bullish
bias.
Major Back Up (MBU)
#2 Huge Effort (volume) as
price descends to and below
Change of support in Phase |B| produces
Character
(CHoCH)
little downward Result.
Subsequent tests leading to
Minor Back Up (mBU) the Spring in Phase |C|
Automatic Secondary indicate absorption of Supply.
Reaction (AR) Last Point of Support (LPS) The bias remains bullish.
Test (ST)

SPRING trading range #3 The Minor Sign of Strength

(mSOS) rally commits above
2. SUPPLY INCREASES 3. SUPPLY IS 4. INCREASED SUPPLY down-sloping resistance
1. INSTITUTIONS AND THEN DECLINES AS EXHAUSTED AND PRODUCES ONLY A despite diminishing volume.
QUICKLY ABSORB PRICE MAKES LITTLE RALLY SHOWS EASE OF MODEST DOWNWARD This suggests Ease of
EMERGING SUPPLY DOWNWARD PROGRESS MOVEMENT (EoM) RESULT Movement (EoM) upwards,
strengthening our bullish
conviction.

#4 The reaction into a Minor

Back Up (mBU) shows
increased down Effort, but an
inconsequential downward
Result. This reveals the
existence of Demand and
confirms the bullish bias.

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 BIAS GAME #25: ACCUMULATION OR DISTRIBUTION?
Vote on @wyckoffanalysis

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 RONNY
This BIAS had some resemblance in a stock that I am in at the moment. Specifically the large volatility in the beginning, apex, and the distinct change of character on the last
move up. I have added 2 slides on it so you can have a look. To give some context. Gap up in July was a deal, giving up to 250 Mil USD next few years if every milestone is
achieved. This came out of the “blue” and was not even in the picture before this came out. But looking at the “spring type action” the day before, I expect someone knew.
Small gap down at the end was Q3 report. Very good report overall. The company is just at the verge of penetrating the market and Q4 will most likely be the first quarter with
blue numbers, and they expect exponential growth. Next slide has a question.
 RONNY
Question: In this instrument I have earlier looked at this as 2 separate ranges. But I’m thinking they are both part of a larger upsloping trading range. My reasoning for this is that despite
for the gap up in July, there has not been a clear change of behavior of the price structure until this last push to the top. Am I seeing this correct? Or am I looking at a very large BUA?
Both? I have also added it`s relative strength compared to it`s index.
 WYCKOFF TRADING PRACTICUM COURSE
MARKET CHARTS

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 WYCKOFF TRADING PRACTICUM COURSE
Q&A

SIMON

What is the difference between Price Velocity and Price Momentum. Is velocity the price spread and momentum is the progression?

What Is Momentum?
Momentum is the rate of acceleration of a security's price or volume – that is, the speed at which the price is changing. Simply put, it refers to the rate of change on price
movements for a particular asset and is usually defined as a rate.

Momentum is analogous to a train whereby the train slowly accelerates when it starts moving, but during the ride, the train stops accelerating. However, the train moves but at a higher
velocity because all of the momentum built up from accelerating is propelling it forward. At the end of the ride, the train decelerates as it slows down.
In the markets, some investors might get in and buy a stock early while the price is beginning to accelerate higher, but once the fundamentals kick in and it's clear to market participants that
the stock has upward potential, the price takes off. For momentum investors, the most profitable part of the ride is when prices are moving at a high velocity.

Source: Investopedia

Price velocity is the speed at which the price moves, up or down, during a given period of time. For example, the Dow Jones Industrial Average might have a price velocity of 5 points up per
10 minutes. If that velocity stays the same for an hour, then the DJIA will move up 30 points during that hour. Price patterns are formed by periods of time during which prices accelerate,
decelerate, or move at a constant velocity.

If the price on the chart is moving up or down at faster and faster velocities, the price is accelerating. If the price on the chart is moving up or down at slower and slower velocities, the price is
decelerating. If the price is moving along a straight line, it has constant velocity and zero acceleration. If the price is moving sideways, which is a special case of it moving along a straight line, it
has zero velocity and zero acceleration.
Source: Unknown

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 WYCKOFF TRADING PRACTICUM COURSE

ANATOMY OF A TRADE

TTD (Trade Desk Inc.)

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 WYCKOFF TRADING PRACTICUM COURSE
Anatomy of a Trade (TTD) Arvind

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 WYCKOFF TRADING PRACTICUM COURSE
Q&A

SIMON

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 EXERCISE #7
Selection
Non-correlated groups and stocks

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ACTION SEQUENCE #1

Stock #1 Stock #2

Stock #3 Stock #4

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ACTION SEQUENCE #1

Industry Group #1

Stock #1

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ACTION SEQUENCE #1

Industry Group #2

Stock #2

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WE STOPPED HERE LAST TIME
 WYCKOFF TRADING PRACTICUM COURSE
Q&A

ARVIND
When evaluating a stock vs industry
group , which is more appropriate -
structure analysis or % difference
analysis?

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ACTION SEQUENCE #1

Industry Group #3

Stock #3

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ACTION SEQUENCE #1

Industry Group #4

Stock #4

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ACTION SEQUENCE #1

Stock #1 Stock #2

Stock #3 Stock #4

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ACTION SEQUENCE #2

Stock #1 Stock #2

Stock #3 Stock #4

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ACTION SEQUENCE #2

Industry Group #1

Stock #1

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ACTION SEQUENCE #2

Industry Group #2

Stock #2

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ACTION SEQUENCE #2

Industry Group #3

Stock #3

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ACTION SEQUENCE #2

Industry Group #4

Stock #4

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ACTION SEQUENCE #2

Stock #1 Stock #2

Stock #3 Stock #4

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ACTION SEQUENCE #3

Industry Group #1

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ACTION SEQUENCE #3

Industry Group #2

MMC

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Industry Group #3
ACTION SEQUENCE #3

ALGN

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ACTION SEQUENCE #3

Industry Group #4

BA

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