Dow Inc Showing Classic Wyckoff Distribution
Amazing example on Dow Inc. of a Trading Range following Wyckoff Distribution Schematic #2.
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What is a Trading Range?
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In an trading range there is a equilibrium of Sellers & Buyers causing price to move sideways but unknown to many the large operators are slowly absorbing all the Supply or Demand of the asset before starting a major campaign.
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What is Wyckoff Method?
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"One objective of the Wyckoff method is to improve market timing when establishing a position in anticipation of a coming move where a favorable reward/risk ratio exists.
In accumulation, the shares purchased outnumber those sold while, in distribution, the opposite is true. The extent of accumulation or distribution determines the cause that unfolds in the subsequent move out of the TR ."
Wyckoff Theory & Schematics give us clues to which probable direction the price may head out of the horizontal moving price structure.
In a Distribution Trading Range two of the key characteristics are the UTAD (Upwards Thrust & Distribution) above the Trading Range, and the SoW's Signs Of Weakness's with strong volume at the bottom end of the range.
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Further Reading
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For more information check out Stockcharts.com, Wyckoff Introduction & Tutorial for beginners.
school.stockcharts.com/doku.php?id=market_analysis:the_wyckoff_method
For Distribution Schematic #2 for comparison:
school.stockcharts.com/lib/exe/fetch.php?media=market_analysis:the_wyckoff_method:wyckoffdistribution2.png
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If you found the idea informative & insightful then share the love with a like & comment, thank you!
------------------------------------------------------------------
What is a Trading Range?
------------------------------------------------------------------
In an trading range there is a equilibrium of Sellers & Buyers causing price to move sideways but unknown to many the large operators are slowly absorbing all the Supply or Demand of the asset before starting a major campaign.
------------------------------------------------------------------
What is Wyckoff Method?
------------------------------------------------------------------
"One objective of the Wyckoff method is to improve market timing when establishing a position in anticipation of a coming move where a favorable reward/risk ratio exists.
In accumulation, the shares purchased outnumber those sold while, in distribution, the opposite is true. The extent of accumulation or distribution determines the cause that unfolds in the subsequent move out of the TR ."
Wyckoff Theory & Schematics give us clues to which probable direction the price may head out of the horizontal moving price structure.
In a Distribution Trading Range two of the key characteristics are the UTAD (Upwards Thrust & Distribution) above the Trading Range, and the SoW's Signs Of Weakness's with strong volume at the bottom end of the range.
------------------------------------------------------------------
Further Reading
------------------------------------------------------------------
For more information check out Stockcharts.com, Wyckoff Introduction & Tutorial for beginners.
school.stockcharts.com/doku.php?id=market_analysis:the_wyckoff_method
For Distribution Schematic #2 for comparison:
school.stockcharts.com/lib/exe/fetch.php?media=market_analysis:the_wyckoff_method:wyckoffdistribution2.png
------------------------------------------------------------------
If you found the idea informative & insightful then share the love with a like & comment, thank you!
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