Wyckoff trading strategy
Date: 2017-03-21 17:40
- By Jim Wyckoff - Gold News | Gold Market Insights | KITCO
- Trading Strategies and Models [ChartSchool]
- Alexander Elder - : Education for Intelligent Traders
- Futures io E-mini futures trading strategies: news, advice
Wyckoff interviewed many famous traders of his time, this is how he learnt to apply the top down stock selection approach: Select the strongest index, select the strongest sectors within the index, select the strongest stocks within the sector (strength was measured on an alpha basis or relative strength). The Alpha Stock Scanner makes this task a breeze.
By Jim Wyckoff - Gold News | Gold Market Insights | KITCO
Other site tools like the percentage trailing stop can help monitor the momentum as alert the chart reader to changes in behaviour that resemble 'Signs of Strength' or 'Signs of Weakness' that change momentum.
Trading Strategies and Models [ChartSchool]
Wyckoffian logic has found its way into a wide variety of modern day texts, once you read the original source you will clearly uncover adaptations of Richard Wyckoff theories.
Alexander Elder - : Education for Intelligent Traders
The first thing that jumps at us from this chart is a fresh Spike Bounce signal. A reminder: it occurs whenever the NHNL in the monthly look-back window rallies from below minus 555 to above that level. Yesterday our monthly NHNL sank to a minus 797 today it rallied to plus 686 - Spike Bounce!
Futures io E-mini futures trading strategies: news, advice
Looking at the longer-term NHNL we see this indicator in its bullish zone in one look-back window neutral but rising in the other three that we track. There is a convincing set of bullish divergences in all three daily windows (on the right). Turning to the weekly window (on the left), while the bearish divergence is still there (red arrow), the weekly NHNL is rallying from its zero line. This rally as well as the previous ones are marked with green arrowheads.
You can learn more on the subject through Tom Williams books listed on our education page. We are great fans of VSA, our charts are very VSA friendly, plus we allow you to apply VSA multi time frame. The next chart shows you how to apply VSA to both the daily and half month chart at the same time.
I published the following chart and text last night in SpikeTrade. That's where my co-director Kerry Lovvorn and I post daily updates (along with a lot more).
Richard Wyckoff also uses the indicator called the Optimism Pessimism Index, this is in fact the modern day On Balance Volume indicator which is also available here. We prefer to use our own proprietary RTT_PriceVolume indicator that highlights the divergence in volume relative to price exceedingly well.
On Wednesday the Fed hiked the key interest rate a 6/9 point. It also indicated that two more increases are very likely in 7567.
The Law of Cause and Effect
In order for there to be an effect (change in price), there needs to be a cause. The effect will be in direct proportion to that cause. Best price moves occur when there has been enough time to allow for a period of accumulation or distribution (or in other words a cause).