WYCKOFF METHOD: A GUIDE FOR TRADERS AND INVESTORS

The Wyckoff Method? It's something special. Even in 2025, it remains a powerful market analysis tool 🔥. Richard Wyckoff, who traded in the early last century, created a system that helps to see the invisible – the actions of large players.

FIVE STAGES OF THE MARKET 📊

The market cycle according to Wyckoff looks something like this:

  1. Accumulation - large players buy at the bottom. Quiet.
  2. Growth - the price is going up.
  3. Distribution - smart money sells. At the top.
  4. Fall - everything is flying down.
  5. Consolidation - no one understands what comes next.

To make this work, you need to understand a few things. See the big players. Their footprints. Choose assets with clear cycles. It's better to take strong instruments. With good volume. And enter at the right time 🚀.

HOW THE WYCKOFF CYCLE WORKS 📈

Everything revolves around "smart money". It seems they are always one step ahead.

Accumulation - the big players are quietly building their positions. Sideways. Boredom.

Uptrend - after accumulation, the price rises. Retail investors jump on the bandwagon.

Distribution - whales are offloading their assets. Retail investors are buying. A range is forming at the top.

Downtrend - a decline. Rapid. Sometimes panic.

Consolidation - the calm before the new storm.

LAWS OF THE MARKET 📜

1. Supply and demand

More demand? The price is rising. More supply? The price is falling. Balance? Sideways.

2. Cause and effect

Trading ranges create energy. They accumulate it. Then this energy shoots out. It's not entirely clear, but that's how it works. The large players accumulate in despair, sell in euphoria.

3. Effort and result

The volume must confirm the movement. Doesn't it confirm? Something is off here 🔍.

PHASES IN RANGE 🔄

Phase A (PS+SC+AR+ST): End of the previous trend. Looks sad. Phase B (UA+STB): Something is brewing. Phase C (Spring): Last nerve check. Phase D (LPS+SOS+BU): It seems that something is changing. Phase E: Breakthrough! Finally.

STRANGE LETTERS OF WYCKOFF 🔍

  • PS - the first signs of support/resistance
  • SC/BC - a lot of volume, panic or euphoria
  • AR - bounce after panic
  • ST - recheck
  • Spring/UTAD - the last trick of the whales
  • SOS/SOW - the first signs of strength/weakness
  • LPS/LPSY - the last chance to enter
  • BU - final accumulation of strength

HOW ACCUMULATION LOOKS 🌕

If you see this, accumulation may have started:

  • The downward trend has ended
  • SC, AR, ST are visible
  • Strange movements from below (STB and Spring)
  • Volumes are falling, it becomes boring.
  • After Spring, something changes in the nature of the movement.

By 2025, a lot of research seems to confirm – the method works. If you understand its essence, you can catch excellent entry and exit points. It works especially well in crypto. Well, at least that's what they say 🚀

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