Wyckoff Price and Market Structures

Distribution Characteristics

within structure

sym.

description

bar spread close in bar

Widening Wide Ave/Wide Narrowing Narrowing Ave/Wide Narrowing Lower Upper Lower Mid-Lower n/a Lower Lower

volume
Increasing Climatic/ High Light Decreasing Light Light Ave-Increasing

increasing prices PSY Preliminary Supply establishes BC Buying Climax trading range AR Automatic Reaction @ top of range ST Secondary Test above upper range UT Up Thrust @ low of range SOW Sign of Weakness @ low of range LPSY Last Point of Supply

Phase A: (thru preliminary Supply PSY to Secondary Test ST) Characteristics- Supply is Dominate; Trend is Up. Typical Price Bar Action- PSY: price spread and volume widen, especially on down bars. - BC: wide spread bar on high volume; close near top. - AR: down bar on light volume, buying pressure exhausted. Phase B: (from Secondary Test ST thru Signs of Weakness SOW; Trendless. Characteristics- Supply = Demand; Trading Range between ST and AR levels; feeble rallys. Typical Price Bar Action- ST: lighter volume, narrow spread; no demand. - SOW: light volume at bottom of range, increasing volume at top; spread varies. Phase C: (from Up Thrust UT and Signs of Weakness SOW Characteristics- Testing Process of, or past, Top Range. Typical Price Bar Action- UT: wider spread on moderate / light volume, weak close. Phase D: (from Sign of Weakness SOW to Last Point of Supply LPSY Characteristics- Signs of Weakness confirmed; Selling Action coming into market. Typical Price Bar Action- LPSY: volume expands, Spreads widen, Weak Closes. - Fall thru Ice: price Falls thru the Ice (support) on gap or wide down bar, strong volume. Phase E: (from Last Point of Supply LPSY to Preliminary Supply PSY) Characteristics- Price leaves Trading Range; Supply is Dominate; Trend is Down. Typical Price Bar Action- BU: Back Up to Ice, price advance to ice support on light volume. - Mark Down: Price swings with lower Highs (light volume) and lower Lows (strong volume).

Accumulation Characteristics

within structure
declining prices establishes trading range @ bottom of range below lower range @ top of range @ high of range

sym.
PS SC AR ST SPR SOS LPS

description
Preliminary Support Selling Climax Automatic Rally Secondary Test Spring / Shakeout Sign of Strength Last Point of Support

bar spread close in bar

Widening Wide Ave/Wide Narrowing Increasing Ave/Wide Narrowing Upper Lower Upper Mid-Upper n/a Upper Upper

volume
Increasing Climatic/ High Light Decreasing Light Increasing Ave-Increasing

Phase A: (thru preliminary Support PS to Secondary Test ST) Characteristics- Supply is Dominate; Trend is Down. Typical Price Bar Action- PS: price spread and volume widen. - SC: wide spread bar on high volume. - AR: up bar on light volume, selling pressure exhausted; watch for short covering. Phase B: (from Automatic Rally AR thru Signs of Strength SOS; Trendless) Characteristics- Supply = Demand; Trading Range between ST and AR levels. Typical Price Bar Action- ST: light volume, narrow range; no supply. - SOS: increasing volume at top of range, light volume at bottom; spread varies. Phase C: (from Shakeout / Spring SPR to Signs of Strength SOS) Characteristics- Testing Process of, or past, Bottom Range. Typical Price Bar Action- SPR: Wider spread on moderate / light volume, strong close. Phase D: (from Sign of Strength SOS to Last Point of Support LPS Characteristics- Signs of Strength confirmed; Buying action coming into market. Typical Price Bar Action- LPS: Volume expands, Spreads widen, Strong Closes. - JAC: Price Jumps Across the Creek on Gap or Wide up bar, strong volume. Phase E: (from Last Point of Supply LPS to Preliminary Supply PSY) Characteristics- Price leaves Trading Range; Demand is Dominate; Trend is Up. Typical Price Bar Action- BU: Back Up to Creek, price retreat to creek resistance on light volume. - Mark Up: Price swings with higher Highs (strong volume) and higher Lows (lighter volume).