Weis Wave (presented by Bob)

Introduction:
This method of reading the market context is heavily linked to Volume so make sure you have watched
all the modules about Order Flow, Delta and Volume especially.

Weis Waves helps to see cumulative volume of the move (wave). Price movement unfolds in waves
rather than in equal time periods. If you’ve been watching George’s Daily Updates you should have
noticed how he very often talks about volume because it is indeed very important. For example, on the
way down he shows you that we have spikes in volume on the way down and this move is considered to
be strong. The problem with that is you only see individual candles and its volume. Weis Waves helps
you to look at volume in a whole different way – cumulative volume. It shows how much volume we had
in a wave and it helps us to build context, where market is trying to go and is it doing a good job going
there. (I strongly recommend you to invest your time in videos I dropped at the bottom of this
document and if you have spare time check out other sources but vids IMO are a must to watch)

How to use and interpret Weis Waves template:

Weis Waves can greatly help you get heads up before reversal and can confirm a reversal. What you
wanna see is change of market behavior. In an uptrend, when the duration, length, and volume of the
buying waves begin to diminish, one should be alert to a possible change of a trend. Same with selling
waves. After seeing diminished volume on buying wave you want to see a retest with very little volume
or heavy effort but little reward. On downtrend last wave to the downside is with highest volume which
was stopped. It marks potential sell off climax. After it we see wave to upside with much more volume
than we had on downtrend wave sub waves. Retest can happen on very little volume or heavy effort but
low reward. Both scenarios confirm trend reversal. (make sure to look at examples below cause it can
sound confusing)

Settings:

Easiest and best (as I know) way to use Weis Waves indicator is with Renko charts. It removes any time
frame related issues such as low volume noise and sideways price action. Depending on trading TF you
might alternate Renko chart values. Feel free to experiment with other candles. One of the questions
you might think of is how the hell am I going to know the length, time and volume of the wave. I am
trying to work out a simple and visual way of seeing that info but now the only way I can do that is by
dragging mouse cursor using middle mouse button.

Things always to look for:

• Trend highest/lowest volumes on each wave, pivotal levels (change in market behavior).
• Reversal candle volume
• Diminishing highs/lows distance
• Volume on breaking a horizontal level
• Volume on a retest
• Wicks showing battle
Example 1:
Third wave fails to make a new high and that is fair because it has only 9 (hundreds) contracts. After it
we see 38 down volume which is significantly higher than previous dumps (yeah we don’t see that but
it’s for educational purpose). It screams to us that sellers are taking control and people who were buying
lower now begin to take profits. Also we can take a look at time – 83 minutes – it's another confirmation
to expect lower prices. Notice how on brake of second wave we brake this support level with 32 volume
– sellers are truly in control. Fifth wave is pathetic compared to the fourth and look at sixth wave – 24
volume and 49 minutes in one bar and what a wick! It shows that there was a war between buyers and
sellers – sellers won. You could argue with me that effort to reward ratio is terrible and I would have to
agree but look at the context and once that high of fifth wave is not broken – I am looking for more
downside.
Example 2:

Let’s examine it from the low. Price got to the low with 42 volume and started chopping to the upside
with low volume. Till the last up wave volume we can’t really say where price is going to go (prolly
continuing trend) but last up wave shows an absorption of all buys. It has 34 volume and lasted 22
minutes. It shows that all that effort is not getting rewarded. New down wave started with 11 volume
which is biggest of all this chop PA volume. Also notice how each high is made with smaller and smaller
distance from high to high – also sign of weakness.
Example 3:

Nice example of SR flip. Look what a spike in volume we have here. Also it lasted 173 minutes (very
long). It shows that there was a war and with such effort bulls failed to reclaim support level.
Example 4:

I would tell that price is going to continue to go to the upside but look at last renko candle – it has most
amount of volume on the reversal – that’s a sign that there was a war and bulls lost it.
Example 5:

On an uptrend we see enormous volume at the high – potential climax and it can also show that there
was a war between buyers and sellers at the high (look at volume indicator(lowest)). After we see a drop
with highest amount of volume we had to the downside since this uptrend started. It gives another sign
of change in market behavior. Retracement to the upside is very weak and look at next red candle wick –
sellers are in control.
Example 6:

This is a zoomed out view of previous example. As you can see we had a change in market behavior as
we have bullish wave with much more cumulative volume than we had previously. After we have seen
two retracements and the second one would be a red flag to not long because of bigger volume
(however it’s not screaming as it’s not highest red cumulative volume) but it was just a retest of vWap
and one Renko candle bar retest (rejection which we have seen after first wave to the upside, rejected
almost at vWap).

Sources:
https://www.youtube.com/watch?v=9PaNkw8C8tA (David Weis The Message of Wave Volume)
https://www.youtube.com/watch?v=uzISUr1itWg (David Weis on Wyckoff, Support/Resistance, and
Waves)
https://youtu.be/wfRwiU2D_Fs (Another David Weis vid about Weis Waves and how he looks at market
in waves)
Book: Trades About to Happen: A modern adaptation of the Wyckoff Method(dm for a pdf)
https://atas.net/atas-possibilities/indicators/how-to-use-the-weis-waves-indicator/
https://atas.net/atas-possibilities/indicators/weis-wave-and-delta/
P.S. if any of those videos become not available dm me (: