Indicator Library
Wyckoff method improved2
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In a closing paragraph of this post Wyckoff method improved1 we said:
.."If you haven't yet worked it out, the Wyckoff Investor is a markup (or down) hunter. Wyckoff determined that the highest probability for markup (or down) to occur was on the completion of his nine rules. We believe the application of Gann Angles in the correct way aid the Wyckoff Investor to nurture and enjoy as much of the markup (or down) process as possible"..
We would like to add another set of scenario's to Wyckoff nine rules, and that would be the three signals produced by the Jim Hurst method through the application of cycle theory.
1) When price conforms to a cycle trough and moves upwards with the cycle rising.
2) When price conforms to a cycle peak and moves downwards with the cycle falling.
3) Which price fails to conform to the cycle and moves in a manner inverse to the cycle action.
The short and long term dominant cycle are the birth places of accumulation and distribution. The monitoring of cycles is very beneficial to forecasting the next market phase. Cycles have a very good habit of timing the next explosion of activity (mark up or down). We feel Hurst cycles add another string to the bow for the Wyckoff Investor.
NOTE: Cycles do not replace Wyckoff nine rules, they do however help filter out those patterns that are less attractive.
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The above chart is the visual definition of the Hurst and Gann value added Wyckoff method, or more simply Wyckoff 2.0. The above chart is Richard Wyckoff method of the 21st Century.
Wyckoff 2.0 Defined:It is the appication of the Richard Wyckoff method in the pure form with the added value tools of Gann Angles and Hurst Cycles. The Gann Angle 1x4, 1x2 and 1x1 are used to assist in the location of pure price markup (or down), the Hurst cycles are used to forewarn of (re) accumulation and (re) distribution phases.
The video explains Wyckoff 2.0 in brief
How to find Mark up Phase
On the GOLD
Here is a real world example of Wyckoff 2.0 method.
Currently (20110707) every hedge fund manager and institution own a piece of Apple Inc for the simple reason the stock has been in a 'pure markup' period since the 2008 lows. Sure a few re accumulation patterns along the way, but a fantastic performing stock. Of course a serious break of the latest blue corridor (1x2 Gann Angle) and a more serious distribution could unfold.Yes you can assume that the Wyckoff 2.0 methods are employed by the top investment houses whether they know it or not.
Here is a video with Boeing (BA) showing off Wyckoff logic anc Gann angles.
The Point and Figure Chart always as 'clear as day' shows phases of (re) accumulation and (re) distribution.
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The above is modern day times, let's roll back to the time when Jesse Livermore made his fortune during the 1929/32 stock market crash. We believe that Jesse Livermore would be a great fan of Wyckoff 2.0 (after all Richard Wyckoff sourced much of his own method from the likes of Livermore and others) to find the critical pivot points to profit from. The chart below shows how easy it is to expose critical trend determination periods or Livermore 'Pivot Points' using readtheticker.com tool set of Gann, Hurst and Wyckoff (or what we call Wyckoff 2.0).
The post named Powerful patterns hold further illustrations.
NOTE: readtheticker.com does allow users to load objects and text on charts, however some annotations are by a free third party image tool named Paint.net
Investing Quote...
..“The game of speculation is the most uniformly fascinating game in the world. But it is not a game for the stupid, the mentally lazy, the person of inferior emotional balance, or the get-rich-quick adventurer. They will die poor.”...
Jesse Livermore
.."A radical is one who speaks the truth."..
Charles August Lindbergh Snr
.."Just because you’re taught that something’s right and everyone believes it’s right, it don’t make it right."..
Mark Twain
..“It’s not what you own that will send you bust but what you owe.”..
Anon
.."Money couldn't buy friends, but you got a better class of enemy"..
Spike Milligan
Created on: 7/3/2011 10:59:38 PM Last Update: 7/26/2017 7:21:43 PM Posted by: RTT
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We at readtheticker.com hold the view that a mix of stock chart technical analysis, Richard Wyckoff, William Gann and Jim Hurst methods plus market fundamentals allows the investor to formulate a very sound market opinion. These attributes are mutually inclusive and must be weighted equally before investing or trading in any Stock, ETF, Currency, Bond, Commodity, CFD or Mutual Fund
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