What does the Wyckoff trading method teach?
— The Wyckoff trading method teaches retail traders to understand the actions of large traders and trade with them using a logical approach based on price action, supply and demand, and the concept of the path of least resistance.
How many phases are there in the Wyckoff methodology?
— The Wyckoff methodology explains the four phases of accumulation, uptrend, distribution, and downtrend, which are determined by supply and demand and the concept of the path of least resistance.
What is the law of supply and demand?
— The Wyckoff method utilizes the law of supply and demand, which states that market prices will seek an equilibrium point where the supply and demand curves intersect, with higher prices leading to decreased demand and increased supply, and vice versa.
How can price movement be determined?
— Price movement is determined by shifts in supply and demand, with an increase in demand or decrease in supply causing prices to rise, and an increase in supply or decrease in demand causing prices to fall, and the asymmetry between supply and demand is based on the integrated power of buyers and sellers in the market.
What are the fast reversal patterns in the Wyckoff method?
— The climax, double top or bottom, pullback, and bull or bear trap are fast reversal patterns that indicate a sudden change in market direction without warning, with the double top or bottom having more sideways motion but not enough to be considered accumulation or distribution, and the pullback indicating buying or selling pressure, while the bull or bear trap tricks sellers or buyers into believing the market will continue in one direction before reversing significantly in the opposite direction.
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