Go With The Flow

Wyckoff Analysis
The art of Price and Volume

Wyckoff is the study of price, volume and the relationship between individual buying and selling waves. These relationships reflect the balance between supply and demand.

By comparing the intensity of the buying and selling pressure of each wave, it’s often possible to ascertain the technical strength or weakness of the trend and the likelihood of the trend continuing or reversing itself.

Buying and selling waves last as long as they have a following. Once the following is exhausted, the market enters into a treading range or changes trend.

These relationships often allow the analyst to ascertain the behaviors and motivations of large operators (smart money).

Price change = Result. Volume = intensity of the participants.

Wyckoff uses three types of charts. Vertical line charts (to ascertain demand and supply), Wave charts and Point & Figure charts.

This type of analysis is a thought process. It’s a way of looking at the market that requires judgment. (As opposed to a mechanical system).

Wyckoff’s approach is dynamic as is the mkt. Markets change as general conditions change yet it’s all based on demand and supply.