AUDCAD Wyckoff Method - Point of Entry 03-05-24
The local trading range (mark up applied) forms a clear accumulation (springboard) on top of the resistance previous trading range, in Wyckoff Method this is referred to a 'backing up action' or 'bua' and in the instance where a trading range forms on top of a previous range this is a major sign of strength.
Supply is removed from the previous high (resistance of the previous range) through the springboard then advances immediately to the top of the trading range.
Phase C is the "Final Test of Demand" and what you want to see here is price retrace to test the support of the trading range then strongly reject this level in a way show a change in the trading conditions (CHoCH) typically through a "sign of strength rally" which is exactly what occurred, revealing Phase.
Phase D is where you want to see a major sign of strength and there is no better major sos of strength indicator in the tape than price trading in a range on top of the local trading range (or BUA) and this is exactly what we see again as price spends time trading above the local trading range in a tight consolidation. With this price action Phase D becomes clear and we are looking for the 'point of entry' or POE.
Although it cannot be observed in this line chart (see AUDCAD Bar Charts in profile), the POE comes a number of hours into to the bua consolidation and when price closes above the consolidation high.
Supply is removed from the previous high (resistance of the previous range) through the springboard then advances immediately to the top of the trading range.
Phase C is the "Final Test of Demand" and what you want to see here is price retrace to test the support of the trading range then strongly reject this level in a way show a change in the trading conditions (CHoCH) typically through a "sign of strength rally" which is exactly what occurred, revealing Phase.
Phase D is where you want to see a major sign of strength and there is no better major sos of strength indicator in the tape than price trading in a range on top of the local trading range (or BUA) and this is exactly what we see again as price spends time trading above the local trading range in a tight consolidation. With this price action Phase D becomes clear and we are looking for the 'point of entry' or POE.
Although it cannot be observed in this line chart (see AUDCAD Bar Charts in profile), the POE comes a number of hours into to the bua consolidation and when price closes above the consolidation high.