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"Tis wortshop will provide you with a unique opportunity to learn the principles of the Wyckoff Method of technical analysis and trading. You will learn to combine the technical tools you already use with an entirely new perspective on market behavior, tuhancing both your technical trading skills and your abilty to judge critical trading sit- uations. You will learn to concentrate your analysis on three essential factors tick-volume or vol- ‘ume (the intensity of trading); the relationship between price movement and volume; and the time required for all the movements to run their respective courses. The information derived by using a volume or tick-volume approach can directy influence your day-to-day decision making process. It will enhance your awareness of the marker’s real strength or weakness. Hank will provide numerous examples, including foreign exchange and fixed inter- est using Dow Jones TradeStation” charts. You will also be provided with some ExsyLanguage™ code to use either on your Dow Jones TradeStation” or as a guide for translating your idea(s) to other platforms. * oe * Hank Pruden is a professor in the School of Business at Golden Gate University in San Francisco, where he fas been teaching for twenty years. Hank is more than a theoretician. He bas actively traded bis own account for the par roenty years. His personal involvement inthe market cnnures that what be teaches is practical for toe trader and NOTT just abstract academic theory. He is the executive director of the Institute of Technical Market Analysis (TMA). At Golden Gate he developed the accredited courses in technical market analysis in 1976. Since then the curriculum has expanded to include advanced topics in technical analysis and trading. In his course: Hank emphasizes the psychology of trading as well as the use of technical analysis methods. He has published extensively in both areas. Hank has coached institutional traders in the field of technical analysis for many years. He is presently on the Board of Directors of the Technical Securities Analysts ‘Association of San Francisco and is a past president of that association. Hank also sits ‘on the Board of Directors of the Market Technicians Association (MTA). The MTA is the world’s leading association for the dissemination of technical analysis information. The MTA’s sister organization, the IFTA. (International Federation of Technical Analysts), certifies analysts worldwide. Hank is the editor of The Market Technicians ‘Asodiation Journal, the premier publication of technical analysts. From 1982 until 1993 he was a member of the Board of Trustees of Golden Gate University. Copyright PRUDEN 1997, All Rights Reserved. “A complete catalogue of all TAG XIX tapes may be ordered frot Dow Jones Seminars 701 Poydras, Suite 3900 New Orleans, LA 70139-3901 xX LAS VEGAS 1997 The Wyckoff Method— Analyzing the Price and Volume Movement of a Market or a Tradable Item According to the Principles of Mass Psychology HANK PRUDEN HANK PRUDEN Golden Gate University 536 Mission Street San Francisco, CA 94105 (415) 442-6583 0 (415) 442-6579 FAX Dowsones EXHIBIT I Henry ©. (Hank) Pruden, Ph.D. Golden Gate University School of Business Institute for Technical Market Analysis, $36 Mission Street San Francisco, California 94105-2968 TEL: 415-442-6583 FAX: 415-442-6579 EEE EEE EEE THE WYCKOFF METHOD: PROFIT AND SURVIVAL TECHNIQUES USED BY LEGENDARY OPERATORS Coenen eee ee EEE EEE od Study advanced techniques in supply-demand analysis and charting. Discover such methodologies as the “Three Wyckoff Laws” and the “Nine Buying and Selling Tests”. Learn to judge the phases of a trading range. Gain skil! at finding low risk money making opportunities. Identify and gain confidence with the three low-risk trading opportunities. Acquire a disciplined operational approach for riding winners, , wo ri The views expressed by the speakers athe cutting losers, and managing risk. ‘TRenmeat Anayrs Conference ae see ihe rhs such speakers ard re no the wets Dow Jones Markets. Such stews are not tmengeato consti investment advice and 4 Should pol be relied upon to govern setion EXHIBIT 2 WYCKOFF SUPPLY AND DEMAND Idealized Cycle DISTRIBUTION AREA ‘SELL ZONE DEMAND GREATER ‘THAN SUPPLY PRICE LINE am ] SUPPLY GREATER THAN DEMAND Z BUY ZONE ACCUMULATION AREA Source: Stock Market Insite CAUSED BY GREED OVERBOUGHT _— [PRICE LINE = J —_/ CAUSED BY FEAR Source: Stock Market Insist EXHIBIT 3 Conception of Primary Market Phases RE-ACCUMULATION ACCUMULATION Accumulation: Markup: Re-Accumulation: Distribution: Re-distribution: Markdown DISTRIBUTION RE-DISTRIBUTION The establishment of an investment or speculative position by professional interests in anticipation of an advance in price. A sustained upward price movement. Momentary stopping or pausing points in the up-trend. The elimination of a long investment or speculative position. Momentary stopping or pausing points in the down- trend. ‘A sustained downward price movement. EXHIBIT 4 THE THREE WYCKOFF LAWS 1. LAW OF SUPPLY AND DEMAND 2. LAW OF CAUSE AND EFFECT 3. LAW OF EFFORT vs. RESULT The Law of Supply and Demand: “When demand is greater than supply, price will rise and when supply is greater than demand, price will fall.” Source: Stock Market Institute EXHIBIT 5 Schematic 1 PHASES: 1, Trading Range, ‘Support Lines c+ Ds E+ So: Stock Marta re Sehematc 1 Accomalation Place tough & Phases tough which the “rating Range uses © conceptualized bythe Who meted anacnpane inte exe. 1 Trading Range Stor defn suppor We range. in Toang Range Rear» define regan be * J (PS) Preliminary Support is where substantial suing bens provide ponouned suppor afer 8 potnged Sow move Volume and ord wien nd proves inal at dhe down move ey be aprachng en "SC Selig Climate pon a which widening spread and sling pressure sal casa hey or panicky “Ehan‘by the ove emp ssoeed by lege poesonl inert near aboton Seat twomane Rally sling presse has been preey much exhased, wave ot buying ean ow ei) push ob rae ss areal by show covenng, The hgh of Tay wil help ee te op oe ing rane. 1 sSTlsconday Testa) sree he sea of he Seling Climat tte te spivdemand bane at ese price ison ft booms be cones iia soppy stole Vovresurce an ome an pe sead shouldbe senean Snmshe othe mart aproacer suppor in he mea he sc 6 The “Creek” is an analogy 19 a wavy line of resistance and floating supply drawn loosely across rally peaks ‘within the trading range. There are. of course. minor lines of resistance and more significant ones that will have to be crossed before the market's journey ean continue onward and upward 7. 8 Springs, Shakeouts and Tests usually occur late within the trading range and allow the market and its dominant players to make a definitive test of available supply before a markup campaign will unfold. If the amount of supply that surfaces on a break of support is very light (low volume), it will be an indication that the way is clear for a sustained advance. Heavy supply here will usually mean a renewed decline. Moderate volume here may mean more testing of support and to proceed with caution. The spring or shakeout also serves the purpose of providing dominant interests with additional supply from weak holders at low prices. Springs and shakeouts are often times ar accompanied by a Test. 9 (JUMP) Jump Across the Creek is a continuation of the creek analogy. The markets jumps resisumce very deliberately. In a JUMP, itis @ good sign if itis done on good spread and volume, thus. depicting- a sign of strength (SOS). 10, 120505) Sign of Strength. an xdvance on good (in- creasing) spread and volume, The Market moves very easily upward II. 13 (LPS) Last Point of Support and (BU) Back Up to the Edge of the Creek 2 pull back to support (that was ‘esistance) on diminished spread and volume after a SOS. This is 2 good place to initiate long positions or pyramid profitable ones positions bought atthe spring, the test or on the SOS. Note: A series of SOS's and LPS's is good evidence that a botiom is in place and Price Markup has begun. Therefore, these are good points at which to build a postion and/or pyramid winning lines. ‘Soe MTA Jeena Saar 5 g (9 LIAHXa T6UEIE — 16 PONE lewmeig — Wowdv 2 t6WEEIE OG PONE —-O6IMEIE pore pT eer ADNVY ONIGVYL | | 1 \ | ia 1 ov sagen fh \ NOTLVTNAMOOV WaaL DNOT soos sepa1 seoqueny 15020" Aued (WAV) LNOANIVLYaLNG WIV TOV EXHIBIT 7 WYCKOFF TECHNIQUES FOR STUDYING SUPPLY AND DEMAND: TAKING ACTION © PHASES OF TESTING ¢ THE READINESS TO MOVE The Po: nm Building Zone 7 BUILPS Source: J. Philip Fund Management, Inc. and the Institute for Technical Market Analysis at Golden Gate University 7 yo wor or! oor't| onz't oct] ort) 0s") 0091 oon’! LOBE Lo-wer-ie 96-AON-6T 96-l9S-0F 96-4ME-IE 96-KEW-IE 96-4PIN-6T 96-UEr-Ie " i mi Aston 2969 w>pt 8. LIMXa rryary peer yeuy roymyy jeouapaL 404 amSH, ‘yr pur ouy Toswadeuryy ping diga 1 -2IN0S i uonejouue weYyD - sve WOdBNAI pur Saavm JO UoIsLedULOD - | sisjeuy sourysisoy puv poddng - | siskpeuy ouinjo, - sishjeuy peardg put 11d - ONVINGG GNV ATddS ONIAGALS UOd SANOINHOAL AdOM JAM Ape 18D ws99US.LL (9D) 8090p, EXHIBIT 9 WYCKOFF TECHNIQUES FOR STUDYING SUPPLY AND DEMAND: THE STOPPING OF A PRIOR TREND PS - Preliminary Support SC - Selling Climax AR - Automatic Rally ST - Secondary Test (The Selling Climax is | generally accompanied 4 | by very high volume. - eaVTNT__ee Source: Stock Market Institute s6 008 sol on su oz mr + rerme-6z Fo-UNE-OE —FEAUIN-TE — P6AdV-6T cuojswedxa ouinjoa pue peaids ooud ‘pias £q paruedsuioace Aijenspy os Sd Jouueyg plosiang Aya qenpesn puory 101g v jo Suiddorg ay, V asvid pug piemumog, OL LIX Aue LYS wiPHIS.LL (SN) pourquioy 4X OF SPUCG-L SA rome sosnos, 10 a 31 007} > 00g 007) 005} 31 009] 004} 06 s6 001 su oz F6990-08 F6-AON-OF ii ro-lag-of Fe-BnV-1E —FEIN-6T FO-UNE-OF —HEAEWHIE FO-AdV-GT FOAPIE ima "| i Sd Jouueya plosi29 > a asvid VaSVHd 1 LainXxa Ape LGD wPMIS.LL (SA) pourquiod AX OF SPuog-L SN a4 001 sor oz S6-494-8T 6-90-00 r6-PO-1E roBny-i¢ ro-une-o¢ roady-6r + ‘AWN 24) Vo aunon pue peaids 39130 Jo uorsuedxa aonioN, Is 1s -Ayssoup 2389 wapjop “Hsfyeuy FEY eo}, 304 21 os “a pur du} W>udewey pu 1 tayoug 9ur7 Addn, @asvHd | VdSVHd \ | \ AO] 0} ssauIpeay » pure 3unsay, | ‘asvViid | U1 LIGHXa, Aped WeYD wiPHdS.LL (SM) paurquioD 4X O¢ spuog-L SA i 6-49-87 lat 39005 12 s6 oz SoaeWIE so-uer-1¢ FO-AON-OE “ant 2 vo auinjoa pue poids aouid Jo uorsuedxa amon, J wasved! 1 1 ' dew | ! aasvnd| : 1 LIGXa, v6-das-0¢ uoyoug 2ur VaSWHd iddng FoIE-6T r6-KOW IE PORE somos AWE VYD wi29NIS.LL (SM) pourquiod AX O¢ spuog-L SN 13 PHASES: as 1 Trading Rane. fecanee Line pecustssr “ur Source: Stock Market Instnte \ _—_—_ ——.._ a——rrrrw—=—e Schematic Schematic 3 co D> ES 1aLpsY PHASES: 1 Trading Range. Resistance Line 2ac. TSTSST esr 1M. Trading Range. ‘Support Line) gaR 61CE \} i2s0w \ 16 Source: Sidek Market Insiute EXHIBIT 17 Distribution Schematics ‘Schematics 2 and 3 show us two model variations of a distribution Trading Range. Phases A through E...phases through which the Trading Range (TR) passes as conceptualized by the Wyckoff method and explained in the text. (PSY) Preliminary Supply...is where substantial selling begins to provide pronounced resistance after an upmove. Volume and spread widen and provide a signal that the upmove may be approaching its end. (BC) Buying Climar...is the point at which widening spread and the force of buying climaxes, and heavy or urgent buying by the public is being filled by larger professional interests at prices near a top. (AR) Automatic Reaction... with buying pretty much exhausted and heavy supply continuing, an AR follows the BC. ‘The low of this selloff will help define the bottom of the Trading Range (TR). (ST) Secondary Tesi/s)..,evisit the area of the Buying Climax to test the demand/supply balance at these price levels. If a top is to be confirmed, supply will outweigh demand and volume and spread should be diminished as the market approaches the resistance area of the BC. (UT) Upthrust- Minor penetration of the proceeding highs or Buying Climax area that is immediately overcome by supply as prices fall back into the rading range. (SOW) Sign of Weakness... will usually occur on increased spread and volume as compared to the rally to point 9 on schematic 2. Supply is showing its dominance in this phase of the distribution. Our first “fall through the ICE” holds and the market tries to get up and forge ahead. The ICE...is an analogy to a wavy line of support drawn loosely under reaction lows of the Trading Range. A break through the ICE will likely be followed by attempts to get back above it. A failure to get back above firm support may mean a “drowning” for the market. (LPSY) Last Point of Suppiv...(See Schematic 2/ Point 11) after we test the ICE and prior support becomes resistance, a SOW is confirmed. These feeble rally attempts, on narrow spread, show us the difficulty the market is having in making a further rise. Volume may be light or heavy, showing weak demand or substantial supply.. It is at these LPSY’s that the last waves of distribution are occurring, It is now not long until the markdown is to begin. ‘Schematic 2/Poi't 11 and 13: after a break through the ICE, a rally attempt is thwarted at the ICE's surface (now resistance). The rally meets a last wave of supply before markdown ensures. LPSY’s are good place to initiate a short position or to pyramid on profitable lines. (UTAD) Upthrust or Upthrust after Distribution...(See Schematic 3 Point 11). Similar to the Spring and Terminal Shakeout in the range of Accumulation, a UTAD may occur in a TR of distribution. It is a more definitive test of new demand after a breakout above the resistance line of tle trading range to new high ground. A UTAD usually ‘occurs in the latter stages of a trading range (SEE schematic 3 point 11). Where as an UT usually occurs earlier in the trading range SEE schematic 3 point 7) If this breakout occurs on light volume with no follow through, or on heavy volume with a breakdown back into the middle of the old trading range, then this is more evidence that the trading range was distribution and we are soon headed for mark-down. This UTAD usually results in weak holders of short positions giving them up to more dominant interests. Also, distribution is taking place to real, less informed, buyers before the mark down will ensues. Source: MTA Journal Summer - Fall 1994 17 1 005" u "1 ” 81 oz w w ra av Coste go-uer-6t ae J ode puna soya og = tN asaT ASAT 19n0 ypeq uoz0y re 238) Supe 3 x0un0UUED V sado;7 mor 81 LIMHXa T6-AON-OF T6-KOW-6T ToaU-IE said 2010 ys amon Keay soyeijzoge unop-ym 250(AS {4h0) ss909e2 44 Jo ug sypoue dn Bones 9} 2198 dng yo utog sword 1 pee (MOS) s20489 9 JO su Savey Seapesn \y ‘ASWI iy ' puemdn, Aye (LGA) ON] DINOU.LGAI T6-UNE-OF T6-ACIN-GTZ6-~A0V-OF Z6-2FIN-IE T6-GPA-RTTE-UEL-IE 16-290-1E 16-AON-6TIG-PO-TE 16-95-06 16-Tny-of 16IME-1E, 00s + + joa yy £198 wo sovord aond 1661 Ra ung Feuog VA 24 pu sr edonn en 2a us sunjon Keay] Astanqun are wapIOD W SHAY EY NPL 0) ANNISUL-IDWROS ose oor os] oars ost ooog +1290 (MOS) $0960, Asal rey sou sna90 5 SONVY ONIGVYL as ost aanjd sag = + vey Supers, 2p ont y209 aesa020 0 1899 $30) suo,ssas sno} pue We} sand moy sud 24) Uo i} S2nON. si m2 SoO1Nd NOUS 00st an tend poe (1) 84, Axepuoaas 241 _yo sade} anyon pur puewap NOLLNERILSIG se saaoo (9a) #8 ° o ost ued (GINV) ONI SAO1AMC OUI GAONVACY 19 Q6-KEN-IE 96-APIN-GZ 96-WEF-IE S6-AON-OF — S6-H9S-6Z_— SEIME-IE SO-APIN-IE SO-MEIV-IE SEEF-IE FO-AON-OL EE TUTE TI or ‘Asian 2999 u2p}0g ‘ss6}euy YoY s|UyPAL 304 29 ‘a pur sup tusuadeuey puny i :20m0s oz oc or os 20 oe B 3x risk Zact RA perfect apex 1-4 = 4 Proliminay symptoms of tuming point Buying test ’ #1 = downside ‘objective accomplished preliminary support Buy now = position one on Position Sheet beter defined } JUNE JUL AUG. SOURCE: THE WYCKOFF METHOD, BY JACK K. HUTSON. 24 901 mI ou oz wz ra id 96-KEW-1E 96AGV-OF 96-4UIN-GT 96-42A-6T 96-URF-IE 6-20-67 SE-AON-OE SEWPO-1E 6-95-67 SEBOV-IE SEIMMIE S6-UNE-OF " ce RTA" pe Ls syaeyp si) Uo SMOLIE au) qyIM puodsa.z0s yey) paused] awl Nod Stu49) JJOHDA AA DY) 9714 A sou wsayyed Suiddoy sty) jaqe7y] St LIGIHXA, APUG ETD wiPHIS.LL (SA) PeurquioD 4X OF SPUCT-L SN oz uw ru + Asa + ASd1 AS 97 LIGIHXT egy SINS” worEtIoy suTddOT, Ape WeYD wrPPHdS.LL (GA) paurquiod 44 OF SPUog-L SN o mo xsd 0S), wsdl sa s6 oor sor su su oct Sor mere ma prerroe ve APETIOPY np preyere a wren 27 LIGIXa FO-AON-OF ro-das-or rorinr-6z vor ke-ie roe ee DN ~~ “paBYd Sy) UO SMOIIE 24) YIM puodsa.s09 yey) paused} AVY NOA SULA) JJOMIAAA BU) LIAL -mou waayed uoreinunsa¥as siMp Joqe'y AMEE ETD wiPHIS.LL (OAL) paurquio; ua, asoucdee 27 »su se uy orl vey np rom SEP PENTA TP rm mi — ° pe YT ao Ne yon ‘Ays.2nup) 21) uapIOD “SISKRUY 1>¥FIN FEOIUNDAS 204 ‘uu pue du) wowadevey puna Old t 2520s TORRE OF ASTY NOLLVTAWNOOVAN 87 LIGINXG GLY wiPIS.LL (OAL) paurquios ua, osoueder 28 ve Wychoff/Stock Market Institute ‘Founded in 1931 13601 N. 19th Avenue. Suite 1. Phoenix, AZ 85029 (602) 942.5581 HE RICHARD D. WYCKOFF COURSE IN STOCK MARKET SCIENCE AND TECHNIQUE The Wyckoff Course has been taught by the Wyckoff Stock Market Institute Since 1931 when it was introduced by Richard D. Wyckoff. Today, it is presented for home study through a combination of printed texts, graphic illustrations and recored lectures. Students on average take nine months to complete the course work and are entitled to an unlimited consultation service while studying and after completion of the course. The Wyckoff approach to technical analysis focuses on the law of supply and demand, the law of cause and effect and the law of effort vs. result. The market's own action reveals these three basic truths at work, which are interpreted with a combination of vertical line charts and point and figure charts. The Wyckoff students learn how to interpret day to day market action and how to convert interpretation into trading and investing decisions. Wyckoff students recieve thier instructions for a tuition of $850. Additional information is available upon request. Write, phone or fax inquires to Wyckoff Stock Market Institute, 13601 N. 19th Ave., Phoenix, AZ 85029. Telephone (602) 942-5581. Fax (602) 942-5165. For more information on custom programs and educational opportunities for technical ‘analysis at the Institute for Technical Market Analysis at Golden Gate University, contact: Henry O. Pruden, Ph.D. or J.C. Coppola Ill at: Golden Gate University School of Business Institute for Technical Market Analysis 536 Mission Street « San Francisco California » 94105-2968 TEL: 415-442-6583 « FAX: 415-442-6579 EMAIL: coppola(@philipfund.com For further information: Wyckoff/Stock Market Institute The Richard D. Wyckoff Course In Stock Market Science And Technique The Wyckoff Course has been taught by the Wyckoff Stock Market Institute since 931 wnen it was introduced by Richard D. Wyckoff, Today, itis presented for ome study through a combination of printed texts, graphic illustrations and sevorded lectures. Students on average take nine months to complelte the eerse work and are entitled to an unlimited consultation service while studying and after completion of the course “The Wyckoff approach to technical analysis focuses on the law of supply and jemand, the law of cause and effect and the law of effort vs. result. The market's own action reveals these three basic truths at work, which are Interpreted with a combination of vertical line charts and point and figure charts The Wyckoff students learn how to interpret day to day market action and how to convert interpretation into trading and investing decisions. Wyckoff students receive their instructions for a tuition of $850. Additional veemation is available upon request. Write, phone or fax inquiries to Wyckort Stock Market Institute, 13601 N. 19" Ave.. Phoenix AZ 85029. Telephone: 602- 942-5581. Fax: 602-942-5166. 29