Introduction to Support and Resistance

Supply and Demand

Introduction to Trend lines

How to draw a Trend line

Chart patterns

Mastering the market structure

The Higher High (HHs) and High Lows (HLs) or Lower lows (LLs) and Lower Highs (LHs) trends

Classic chart patterns for analyzing the market

WYCKOFF Analysis

Phases of the Market Structure

How to spot an Accumulation

How to spot Distribution

How to spot a spring and UT in the market

Market Edges
FUNDAMENTAL ANALYSIS USING
WYCKOFF ANALYSIS

Introduction to Support and Resistance

Support and resistance is a term used to categorize levels where price
movement continuation is hindered. Support is when the market is
unable to go up from a certain zone or location. Support levels aid
bullish (upward) movements while resistance is also the same as
support. Resistance aids bearish (downward) movements. These price
levels are where traders to enter LONGS (buy) or SHORTS (sell).

Supply and Demand

Supply is an action accorded to a seller while demand is an action taken
by a buyer. On a Forex chart there are zones (a short range of space)
where price is speculated to approach or reverse from. Supply zones are
high areas on the chart where sellers are willing to sell an instrument
from. Demand zones on the other hand are low areas on the chart where
buyers are willing to buy from.

Introduction to Trend lines

Trend lines are bullish or bearish diagonal lines that determine price
behavior. Trend lines are used to forecast the market and speculate what
is most likely to happen to price within a period of time.

How to draw a Trend line

When the market tends to form a upward movement it means the market
is in an uptrend, to draw a trend line for an uptrend you draw a line at
the bottom making it touch at least two candle sticks. And vice versa for
the downtrend, Just as it is shown above.

Chart patterns
Significant levels are the main factors in technical analysis, if the price
rebounds off a specific level it is considered strong and is likely it will
rebound on the level again, breach accelerates the price movement.

Mastering the market structure

The Higher High (HHs) and High Lows (HLs) or Lower

lows (LLs) and Lower Highs (LHs) trends
The HHs and HLs or LLs and LHs trends are the point in a trend,
whenever the market is an uptrend we will be able to find HHs and HLs
and when the market is in a downtrend we can find LLs and LHs.
HHs simply means Higher Highs which means it’s higher than the
previous high. LLs simply mean Lower Lows which means it is lower
than the previous low. HLs simply mean Higher Low which means it is
higher than the previous low. LHs simply mean Lower High which
means it is higher than the previous High.
 LLs and LHs HHs and HLs

Classic chart patterns for analyzing the market

Below are some classic chart patterns;
1. Double Top:
2. Double Bottom

3. Bullish Rectangle
4. Bearish Rectangle

5. Ascending Triangle.
6. Descending Triangle.

7. Bullish pennant
8. Rising Wedge.
9. Symmetrical Triangle
WYCKOFF Analysis
Phases of the Market Structure
 Accumulation
 Mark Up
 Distribution
 Mark Down

Accumulation
This when the presence of smart money is present in the market at the
moment it is happening, it usually seen after a strong down trend.

Mark Down
This is also referred to as a down trend. It comes before an
accumulation.

Distribution
This is similar to accumulation, it is also when there’s smart money
present in the market but it comes after a strong up trend.

Mark Up
This is also referred to as an up-trend. It comes before a distribution.

How to spot an Accumulation

 Selling climax (SC)
 Automatic Rally (AR)
 Secondary Test (ST)
  Spring
 Jump across the creek (JAC)
 Back up to the edge of the creek (BUEC)
Selling Climax: It is when there is no more selling in the market, then
the market begins to range to form an accumulation.

Automatic Rally: it comes after the selling climax.

Secondary Test: This is when the market comes back to re-test the
selling climax and goes back up.

Spring: This is when the market comes back down after the secondary
test, it tests the selling climax but instead of going back up it exceeds the
selling climax zone and then jumps back up, which is a good sign to take
a buy.

Jump across the creek: This is when the market rises above the
automatic rally, it comes after the spring. It then comes back down to re-
test the automatic rally then it jumps back up, which is also a good sign
to take a buy.

Back up to the edge of the creek: It comes after the Jump across
the creek, it is when the market finally goes up, and it is also a good sign
to take a buy position.
How to spot Distribution
 Buying climax (BC)
 Automatic Rally (AR)
 Secondary Test (ST)
 Up Thrust
 Fall Through Ice (FTI)
 Rally Back to Ice (RBI)

Buying Climax: It is when there is no more buying in the market, and

then the market begins to range to form distribution.

Automatic Rally: it comes after the buying climax.

Secondary Test: This is when the market comes back to re-test the
buying climax and goes back up.
Up Thrust: This is when the market comes back down after the
secondary test, it tests the buying climax but instead of going back down
it exceeds the buying climax zone and then goes back down, which is a
good sign to take a sell.

Fall through Ice: This is when the market goes below the automatic
rally it comes after the up thrust. It then goes back up to re-test the
automatic rally then it goes back down, which is also a good sign to take
a sell.

Rally back to ice: It comes after the fall through ice, it is when the
market finally goes down, and it is also a good sign to take a sell
position.
How to spot a spring and UT in the market

Spring: it is when the market goes below the support level.

Up Thrust: it is when the market goes above the resistance level.

Market Edges

 Over Bought/ Buying Climax

 Over Sold/Selling Climax
 Jump across the creek (JAC)
 Back up to the edge of the creek (BUEC)
 Fall Through Ice (FTI)
 Rally Back to Ice (RBI)