Link to image of Wyckoff's Accumulation Schematic #2: https://imgur.com/945poSJ
Link to "Basic" teachings of Wyckoff Methods: http://stockcharts.com/school/doku.php?id=chart_school:market_analysis:the_wyckoff_method
Famous Wyckoff Quote:
”…all the fluctuations in the market and in all the various stocks should be studied as if they were the result of one man’s operations. Let us call him the Composite Man, who, in theory, sits behind the scenes and manipulates the stocks to your disadvantage if you do not understand the game as he plays it; and to your great profit if you do understand it.”
More will be added to this as things play out. So, stay tuned...
I can barely keep my eyes open at the moment from lack of sleep. So, I better stop for now to try to avoid making mistakes. I simply wanted to get this out by the time I said I would.
I'm fighting a cold I caught from my son as well.
Happy trading !!!
All the best,
This is simply an update for my own personal future reference... The Pull back (Back Up) is in progress before we continue a Spring and/or Up Thrust.
"Basic" Notes for Phase D from Wyckoff:
Phase D: If we are correct in our analysis, what should follow is the consistent dominance of demand over supply. This is evidenced by a pattern of advances (SOSs) on widening price spreads and increasing volume, and reactions (LPSs) on smaller spreads and diminished volumes. During Phase D, the price will move at least to the top of the TR. LPSs in this phase are generally excellent places to initiate or add to profitable long positions.
Do I believe we're going down to test the Support line again? No!!! I do not believe that. Why? Because we already had a Sign of Strength busting above preliminary support lines and we're seeing the normal "Back Up" after the sign of strength. A reminder of SOS, LPS and BU:
SOS—sign of strength, a price advance on increasing spread and relatively higher volume. Often a SOS takes place after a spring, validating the analyst’s interpretation of that prior action.
LPS—last point of support, the low point of a reaction or pullback after a SOS. Backing up to an LPS means a pullback to support that was formerly resistance, on diminished spread and volume. On some charts, there may be more than one LPS, despite the ostensibly singular precision of this term.
BU—”back-up”. This term is short-hand for a colorful metaphor coined by Robert Evans, one of the leading teachers of the Wyckoff method from the 1930s to the 1960s. Evans analogized the SOS to a “jump across the creek” of price resistance, and the “back up to the creek” represented both short-term profit-taking and a test for additional supply around the area of resistance. A back-up is a common structural element preceding a more substantial price mark-up, and can take on a variety of forms, including a simple pullback or a new TR at a higher level.
If they were going to "margin" long, it would have been better to wait for the "Back Up" AFTER the Sign Of Strength.