Mr.

Anderson  Subscribe
@TrueCrypto28
Dec 30, 2022 • 36 tweets • 5 min read Read on Twitter

 Bookmark  Save as PDF

WYCKOFF CLIFF NOTES (Technical Analysis detective work. Learn to study the footprints)

Price moves in waves, not a straight line.

Each major trend is made of many smaller uptrends and downtrends.

When one wave ends, another begins in the opposite direction.

As an example, when the market is in the distribution phase. A ceiling has formed and large traders are offloading
stock/coin they previously purchased.

This attracts last-minute greedy buyers and informed traders looking to sell.

Rising markets encounter resistance and if broken, will turn.

Falling markets also encounter resistance and if broken, will turn.

These pivot points offer great trading opportunities

Determine your trading approach in advance. It's hard to have both buy and sell positions at once, so try long-term
trading first until you find consistent success.

To have long term success in trading, you must understand the factors that drive market behavior and emotions.

A bull market is driven by greed and a bear market by fear.

Know these emotions to make informed decisions.

When price is trending, we expect the pushing side to have greater strength. Think of it as a battle between buyers
& sellers, & analyze the strength of both sides

For the trend to continue, each impulse must surpass the last. If it can't, it could be a sign the trend is ending.

A breakout of a trend line by itself is not a conclusive sign of anything, as it may be a true or false break.

What is significant is how the line is broken, the conditions under which it happens, and the behavior that precedes
it.

Traders should be aware of overbought/oversold conditions

These occur when the price goes beyond the upper end of a bull channel

Fast acceleration can lead to a point where price is vulnerable to long covering & experienced buyers pulling out,
indicating a weakening uptrend.

The Wyckoff method can help you identify key events and phases during range development.

 Follow
TheseUs onpoints
Twitter!define a range, and as long as price stays within it, there's little major movement.  Tweet  Share
 But breaks at the ends can offer great trading opportunities.

The Wyckoff method has proven effective for over 100 years of trading various financial instruments.

It analyzes price & volume action to understand how supply and demand drive price changes.

While not overly complicated, it must be studied in great depth in order to apply it

The Wyckoff methodology allows for flexibility in market analysis.

Price can form various structures based on market conditions, so we need an approach that accommodates price
movement while still being objective.

An example of The phases of the Wyckoff method are:

A) stopping the downward movement,

B) building the cause,

C) testing,

D) springing out of the range,

E) bullish trend out of range.

The law of supply:

If demand is greater than supply, price goes up.

But beware of the common mistake that prices rise just because there are more buyers than sellers.

A market is made up of buyers and sellers who interact to match orders.

Don't confuse supply and demand with placing limit orders in the BID and ASK columns.

To push the price higher, buyers must aggressively purchase all available sell orders & keep buying to force the
price up & find new sellers.

Passive buy orders alone won't increase the price.

The absence of one of the two forces can facilitate price displacement.

When the bid is withdrawn, this lack of interest will be represented by a smaller number of contracts in the ASK
column, which will allow the price to move more easily upwards.

During lateral price periods, the market is creating a cause for future trend movement away from resistance.

The longer the market stays in a range, building momentum, the farther the subsequent trend will likely travel.

Big traders use these climax candles to accumulate or distribute all the stock they need without developing a more
extensive campaign and starting from there, the expected movement.
 Follow Us on Twitter!  Tweet  Share
 The market moves based on the law of cause & effect, using lateral phases to create subsequent movements.

Wyckoff traders know that trends start during lateral phases, they look for new structures to analyze price &
volume action & position themselves before a new trend begins

The effort of a trade should be in harmony with the result, indicating strength of the movement.

If the effort is in divergence with the result, it is a sign of weakness of the movement and suggests a reversal.

We would obtain a harmony in effort & result if both the candle & volume have continuation

And divergence if a turn is generated in the market.

In the development of the movements, we increase the portion of our analysis & examine the PA & volume in terms
of complete movements

The law of effort and result can also be applied to waves, helping us evaluate market conditions and compare
upward and downward pressure between moves.

Effort vs Result analysis can be applied to broader market contexts like trends.

Turns don't always happen with large volume and small price movement. Lack of interest can also cause a price
twist, seen in small volumes on market floors or after a bearish reversal

The law of cause and effect:

For an effect to occur, there must be a cause that produces it.

The effect will be directly proportional to the cause.

In the accumulation range, buying stock will cause a subsequent upward trend movement.

During accumulation, large traders create an environment of extreme weakness.

Bad news may mislead others to enter the wrong side of the market.

They gradually acquire all available supply through various maneuvers.

When professional buyers want to test the path of least resistance, they'll start downward movements to see how it
follows. Lack of volume at this point suggests lack of interest in going lower.

The accumulation range is marked by a decrease in volume and volatility as the range develops. Tests to the high
zone of the range without volume, suggesting an absence of selling interest. Springs to previous lows.

The duration of this structure is influenced by the percentage of strong vs. weak hands controlling the value. If
value is mainly in strong hands at the start of reaccumulation, the structure will be shorter.

The law of cause and effect states for an effect to occur, there must be a cause that produces it. The effect will be
directly proportional to the cause. In the distribution range, selling stock will cause a subsequent downward trend
movement.

An Upthrust (a sudden upward movement into the ranges resistance level), is used to carry out a 3 functions:

 Follow Us on Twitter!
1. Reach well-positioned short sellers stop loss  Tweet  Share
 2. Induce buy orders in ill-informed traders who believe in bullish continuation

3. Profit from such movement.

The only way for professional traders to trade in the markets is to use liquidity to match their orders. When the
bearish reversal occurs after the shake, the stops of those who bought will be executed, adding strength to the
bearish movement.

After the development of the range is complete, professionals will not initiate the downward trend movement until
they can verify that the path of least resistance is down. This is done through tests with which they evaluate the
buyer's interest.

The key characteristics of distribution ranges:

High volume & volatility during range development

Wide price fluctuations, tests to the lower zone of the range w/o volume(an absence of buyer interest), upward
shakeouts to previous highs, & wider & more fluid bear movements

During the periods of redistribution, the professionals who are already short return to sell around the top of the
range & potentially cover some of his positions near the base of the range. They are increasing their short position
during range development.

The percentage of strong & weak hands that control the value will influence the duration of the structure. If the
value is still mainly in strong hands at the beginning of the redistribution, the duration of the structure will be
shorter.

To be continued...

•••
Missing some Tweet in this thread? You can try to force a refresh

 Tweet  Share  Email

 Keep Current with Mr. Anderson  This Thread may be Removed Anytime!

Stay in touch and get notified when new Twitter may remove this content at
unrolls are available from this author! anytime! Save it as PDF for later use!

+ Add to "My Authors"  Read all threads  Save this thread as PDF

Try unrolling a thread yourself!

1. Follow @ThreadReaderApp to mention us!

2. From a Twitter thread mention us with a keyword
Follow Us on Twitter!  Tweet Share

"unroll" 

More from @TrueCrypto28
Mr. Anderson
@TrueCrypto28
Feb 3
Envy is the root of all modern evils.
THEY want you to believe that
GREED runs the world. In truth, it's
ENVY that runs the world today and
envy is far worse Envy as defined by
Immanuel Kant 👇 on life support. Dalio knows we need
Read 6 tweets
Mr. Anderson
@TrueCrypto28
Dec 22, 2022
If you have been around long enough,
you realize that most 'crises' are
created b/c a crisis is an excellent
opportunity for those w/ hidden
agendas. These were the crisis the
Government created to program their
Sheep over the years. Now they create
one every few months.
Read 4 tweets
 Follow Us on Twitter!
@threadreaderapp unroll
Practice here first or read more on our help page!
Mr. Anderson
@TrueCrypto28
Feb 2
#BTC It’s always fun to listen to
financial geniuses talk about
#Bitcoin. They are so close and just
don’t get it. They absolutely KNOW
that money as we know it is dying &
a replacement, but wants an instant
replacement w/ no volatility.
Read 4 tweets
Mr. Anderson
@TrueCrypto28
Dec 9, 2022
Many popular people on CT are those
that have been showing you BS price
models, BS math models, and BS
technical analysis They have been
displaying Bull porn from the top
down & you have rewarded them for
it Let Michael Platt explain to you
why you should be very leary
of any smart-sounding analyst "When
Read 6 tweets
Mr. Anderson
@TrueCrypto28
Dec 29, 2022
TRADING RULES Small Losses only
Avoid big losses at all costs. The
higher your % loss, the higher the %
gain you need to get your money
back. On a 50% loss, you need a
100% gain to break even Control Risk
Know your exit criteria before you
enter a trade.
Exit as soon as the reason for your
Read 5 tweets
Mr. Anderson
@TrueCrypto28
Dec 9, 2022
Understanding the 14 stages of
Investor Psychology Optimism – A
positive outlook encourages us about
the future, leading us to buy assets
Excitement – Having seen some of our
initial ideas work, we begin
considering what our market success
could allow us to accomplish.
Read 7 tweets
 Tweet  Share
 Did Thread Reader help you today?
Support us! We are indie developers!

This site is made by just two indie developers on a laptop doing marketing, support and
development! Read more about the story.
Become a Premium Member ($3/month or $30/year) and get exclusive features!
 Become Premium

Don't want to be a Premium member but still want to

support us?
Make a small donation by buying us coffee ($5) or help with server cost ($10)
 Donate via Paypal

Or Donate anonymously using crypto!

Ethereum

0xfe58350B80634f60Fa6Dc149a72b4DFbc17D341E copy

Bitcoin

3ATGMxNzCUFzxpMCHL5sWSt4DVtS8UqXpi copy

 Thank you for your support!  

  Help | About | TOS | Privacy | Twitter Files

 Follow Us on Twitter!  Tweet  Share