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1. Jesse Livermores Secret To Success

2. Home page investor image explanation

3. The great crash 1929

4. Dear NewBie Investor

5. How to win in the stock market

6. Commandments to follow

7. 10 Rules for Investing

8. How to survive a stock market crash

9. William J ONeil, CANSLIM

10. Barry Ritholtz keep it simple stupid

11. Gerald Loeb how to win

12. Paul Tudor Jones II

13. Felix Zulauf

14. Warren Buffett

15. Reading the tape

16. Indicators Introduction

17. Richard Ney method

18. Richard Wyckoff method

19. Richard Wyckoff is a success story

20. Richard Wyckoff logic not working, this maybe why?

21. Richard Wyckoff studied Jesse Livermore

22. Bob Evans, renowned Wyckoff teacher

23. William Gann method

24. William Gann life story

25. William Gann Law of Vibration

26. Jim Hurst method

27. Wyckoff method improved1

28. Wyckoff method improved2

29. Original Wyckoff and Wyckoff 2.0

30. Wyckoff 2.0 vs Others

31. Wyckoff 2.0 and Volume Spread Analysis

32. Powerful Patterns

33. Elliot Waves

34. Price Action

35. Market Statistics

36. Cycles for short term speculation

37. Stop Loss methods

38. Alpha Stock Scanner

39. Swing Scanner

40. Flash Charts

41. RTT Market Timer

42. RTT Wyckoff Short Term model

43. Chart Drawing Tools

44. Standard Indicators

45. Proprietary Indicators (PI)

46. PI: RTT TrendStatus

47. PI: RTT TrendPower

48. PI: RTT VolumeWave

49. PI: RTT Rainbow Bands

50. PI: RTT Volume

51. PI: RTT MarketPulse

52. PI: RTT Steps of Cause and Effect

53. PI: RTT Wyckoff Strength Weakness

54. PI: Proprietary Indicators Caution

55. What we do?


Indicator Library
Richard Wyckoff method
The originator of this method is from the writings of Richard D Wyckoff. (1873-1934)
Richard Wyckoff
At the age of 15-years old, he became a stock runner, scurrying back and forth on Wall Street. At age 25, he opened his own brokerage office which gave him close contact with several the most important and influential traders Wall Street has ever seen. He studied the market operations of Jay Gould, Jesse Livermore, J.P. Morgan, Andrew Carnegie, along with many others, all in an effort to develop his own approach to the market. These were men who studied the market, understood how and why it moved, and profited from it. Wyckoff methods were successfully applied in a newsletter called 'The Magazine of Wall Street' (known to have 200,000 subscribers in the 1920's). The newsletter became the darling of Wall Street traders.

The October 2002 issue of Stocks and Commodities magazine featured an article in which staff writer David Penn went on “a not-so-random walk through the history of charting the markets.” This walk through history led Penn to identify five historical figures as “titans of technical analysis.” He included Charles Henry Dow, Ralph Nelson Elliott, Wim Delbert Gann, Arthur A. Merrill, and Richard D. Wyckoff. About Wyckoff he wrote, “Many of Wyckoff’s basic tenets have become de facto standards of technical analysis: The concepts of accumulation/distribution and the supremacy of price and volume in determining stock price movement are examples.”

Wyckoff saw the economic principles of supply and demand at work through in the stock exchange. He believed that the behavior observed through price and volume movements held the key to to forecasting future market movements. These observations led Wyckoff to believe that the market operated under a set of three laws.

The Law of Supply and Demand
When there is an excess amount of something (supply) the value of that item is reduced to draw in the demand needed to absorb that supply. Or, if there is a scarcity of something, then the value of that item will increase to create the supply that will meet that demand.

The Law of Cause and Effect
In order for there to be an effect (change in price), there needs to be a cause. The effect will be in direct proportion to that cause. Best price moves occur when there has been enough time to allow for a period of accumulation or distribution (or in other words a cause).

The Law of Effort vs Results
Simply stated, if there is an effort, the result must be in proportion to that effort and cannot be separated from it. If it is not, it is an indication of other principles in action. Think of the effort as the volume on a move, and the result is the corresponding price action. These two should be in harmony. If you have a lot of volume, you should see a lot of move, if you don’t…why? What is happening? This is where we become the detective, use our tools, evaluate that price action (result), with the corresponding volume (effort), and make some deductions based on the “balance of probabilities”.

Richard Wyckoff took a five step approach to stock selection
1) Determine the present position and probable future trend of the market.
2) Select stocks in harmony with the trend.
3) Select stocks with a “cause” that equals or exceeds your minimum objective.
4) Determine the stocks’ readiness to move.
5) Time your commitment with a turn in the stock market index.

The above approach Mr Richard Wyckoff believed allowed the retail trader follow the market foot prints of the composite man to profits. The composite man can be defined as:

…"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.”..

Richard Wyckoff believed the composite man acted in the stock market like a merchandising operator (like a retail store: Buy summer hats in winter to sell in summer. Buy woolly jumpers in summer to sell in winter. It is a simple manner of managing stock float and manipulating the public to act in a manner that suits his operation [Richard Ney books goes into deep detail of the merchandising operation].) Richard Wyckoff believed that just like a merchandising operation, the composite man plans accumulation and the following mark up campaigns for the best results (and the same for distribution and mark down).

Wyckoff was proof that a great trader was not born or had mystical powers, but resulted from sound training and hard work. He merged the methods of the great traders of the time into a detailed step by step plan. With no confusion or gaps in explanation that is so common is 'How I trade' books, Wyckoff produced charts, trading results, diaries and full explanations. To best understand wyckoffian logic and methods the following texts are a must read.

Below are the best books and PDFs of Richard Wyckoff Logic.

  • Studies in Tape Reading
  • Jesse Livermore's Methods of Trading in Stocks
  • Best Trading Lessons of Jesse Livermore
  • Charting The Stock Market, The Wyckoff Method
  • Making It in the Market: Richard Ney's Low-Risk System for Stock Market Investor.
  • Master The Markets (book or pdf) and/or The Undeclared Secrets That Drive The Stock Market
  • Wyckoff Schematics: Visual templates for market timing decisions (pdf)
  • Wyckoff Associates, Inc course book1: Method of Tape Reading
  • Wyckoff Associates, Inc course book2: Tape Reading and Active Trading
  • Bob Evans (Wyckoff teacher,founder Wyckoff Associates) audio tapes, known as 'Evans Echoes'.
  • Wyckoff Unleashed, Wyckoff SMI online course material.
These books are a great and best place to start:

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You can find more information on the education page and via our  videos.

There is a formal Wyckoff education process from 'Wyckoff Stock Market Institute' .
Note: is an official affiliate of Wyckoff Stock Market Institute (or

The Wyckoff Stock Market Institute ( provides an excellent education program to get ahead with Richard Wyckoff logic, approves of their education material, but of course we prefer our charts, tools and scanner within for the live Wyckoff trade management.

Richard Wyckoff is an official affiliate of Wyckoff Stock Market Institute (or

The Wyckoff Way

Wyckoff Logic phases

When you understand the Wyckoffian phases of the market, you can determine when to be in or out of the market. You begin to understand how the large accounts determining market the trend, change of trend and price action. Consider the below application of Wyckoffian terms to the modern day SP500.

For more detail on the Wyckoff phase labels: Wyckoff Schematics: Visual templates for market timing decisions (pdf) via our education page.

NOTE: Annotations placed on the chart via Paint. Net

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Wyckoff market phases

Here is a example of Richard Wyckoff Price action road map.

Most important law: Cause and Effect

How did Wyckoff Trade: In short he traded the phase known as 'price mark up/down', which occurs soon after the price had completed a clean break out of a base pattern. Wyckoff would then purchase shares on the dips (assuming the volume conditions warranted price action was still bullish). Wyckoff avoided making trades during significant 'accumulation' and 'distribution' phases within the market.

Wyckoff interviewed many famous traders of his time, this is how he learnt to apply the top down stock selection approach: Select the strongest index, select the strongest sectors within the index, select the strongest stocks within the sector (strength was measured on an alpha basis or relative strength). The Alpha Stock Scanner makes this task a breeze.

Wyckoffian logic has found its way into a wide variety of modern day texts, once you read the original source you will clearly uncover adaptations of Richard Wyckoff theories.

We acknowledge that Wyckoff implemented nine strict rules for the execution of an investment decision. We at do not apply his rules with the same discipline, however we acknowledge them and treat them as a guide only. annotation tools are excellent for tracking Wyckoffian logic terminology on your favorite stock charts.

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RTT tools for Wyckoff logic

Viewing price and volume action on a daily, weekly and monthly charts are the norm. We find favor with viewing price and volume action with Half Month charts (that is start of month to the 15th, then 15th to end of the month), we see these as just right for a wider view of the price action. And yes we can do quarterly as well, just for fun.

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Ford price volume swings

Tom Williams is a master of the Richard Wyckoff method. Tom took the method of reading the bar by bar price action the Wyckoff way to a new exciting level. He called it Volume Spread Analysis (VSA), and it warrants your attention to learn this art. However a word of caution, many are using VSA as the definitive approach to execute trade decisions as if it was the Wyckoff method, they also assume that trading VSA can be applied with success no matter the phase of the market. Our view is that the phase of the market is critical for the Wyckoff method to be successful. As stated above Richard Wyckoff invested when the market entered a mark up or down phase, and we believe this approach should be maintained. VSA can and should be used to formulate a view of price action, but when the Wyckoff investor must execute a trade the market phase, index strength, sector strength and the stock's relative strength are every bit as critical as the VSA view.

You can learn more on the subject through Tom Williams books listed on our education page. We are great fans of VSA, our charts are very VSA friendly, plus we allow you to apply VSA multi time frame. The next chart shows you how to apply VSA to both the daily and half month chart at the same time.

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Volume Spread Analysis VSA multi time frame

You can also use our Point and Figure charts to complete the Wyckoff accumulation and target exercises.

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Point and Figure Ford

In more detail, the Richard Wyckoff price target calculation :

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SP500 Pnf

In Tim Ord's book (The Secret Science of Price and Volume) he explains how to review volume per price swings and when to be bullish or bearish. We added to this the percentage of the float traded each day and swing. The results are always very interesting when you apply Wyckoff logic to float traded as well as volume. (Note: Stock float data is not provided, we use the data from short )

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Ford Float and Volume Swings

Richard Wyckoff also uses the indicator called the Optimism Pessimism Index, this is in fact the modern day On Balance Volume indicator which is also available here. We prefer to use our own proprietary RTT_PriceVolume indicator that highlights the divergence in volume relative to price exceedingly well.

Richard Wyckoff incorporated the 'Wyckoff Wave' (Our symbol: @RTWWV) within his trading, this is a custom index made up of 12 leading stocks, one for each major market sector. Applying Hurst and Gann together tools only adds further value to the chart.

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The Wyckoff Wave

Other site tools like the percentage trailing stop can help monitor the momentum as alert the chart reader to changes in behaviour that resemble 'Signs of Strength' or 'Signs of Weakness' that change momentum.

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Traling stop

Wyckoff Mapping of Chart Action: In the article titled 'Wyckoff Schematics: Visual templates for market timing decisions' (pdf) (see our education page) the authors map out the terminology used within a Wyckoff chart. The mapping of price action in this manner allowed Wyckoff to determine if and when his nine step formula had been achieved. Wyckoff new the process of accumulation (or distribution) was a minefield for the investor as the risk of being stopped out was high and the risk to reward ratio was poor. Wyckoff uses the nine rules to determine when and if the accumulation (or distribution) process was to end and the price mark up (or down) process was about to be begin, the markup (or down) process being the ideal time to take an investment position. Wyckoff wished only to invest in the markup (or down) phase of the stock price cycle, he also new determining the change over from accumulation (or distribution) to mark up (or down) phase was tricky and the risk of loss was at this time highly probable. Wyckoff created the logical approach of the nine rules to be more scientific than artistic or discretionary to limit his risk.

The Wyckoff Stock Market Institute ( provides an excellent education program to get ahead with Richard Wyckoff logic, approves of their education material, but of course we prefer our charts, tools and scanner within for the live Wyckoff trade management.

Richard Wyckoff is an official affiliate of Wyckoff Stock Market Institute (or

The nine rules for buying (long) into the markup process after an accumulation phase

1) Downside Objective Accomplished (PnF)

2) Bullish Price Behavior

3) Preliminary Support and Selling climax (PnF)

4) Stronger than the Market: Harmony/Alpha/Relative Strength

5) Trend line Broken

6) Higher Bottoms: Reason To move.

7) Higher Tops: Reason To move.

8) Base Forming (PnF): The cause.

9) Trade 3:1 Reward / Risk Ratio (PnF): Expected Effect.

The nine rules for selling (short) into the mark down process after a distribution phase

1) Upside Objective Accomplished (PnF)

2) Bearish Price Behavior

3) Preliminary Supply and Buying Climax (PnF)

4) Weaker than the Market: Harmony/Alpha/Relative Strength

5) Trend line Broken

6) Lower Tops: Reason To move.

7) Lower Bottoms: Reason To move.

8) Crown Forming (PnF): The cause.

9) Trade 3:1 Reward / Risk Ratio (PnF): Expected Effect.

The nine steps above are a subset of Wyckoff 5 overall leading steps of evaluation:

1) Determine the present position and probable future trend of the market.

2) Select those stocks that are in harmony with the market, in a bull market stronger, in a bear market weaker, using the idea of relative strength.

3) Select those stocks that have built a cause for a potential move in keeping with our goals. Use point and figure charts to determine how far the stock is likely to move.

4) Determine the stock’s readiness to move and then analyze the standard price and Point and Figure charts with the help of the Nine Buying and Selling Tests.

5) Time your commitments with a turn in the general market using the three laws that govern all market behavior.

The Wyckoff mapping process is fun and as it puts sign posts on the chart to the direction of Mr Market. You may think that the Wyckoff accumulation and distribution patterns below are just a mirror of the standard technical analysis of double tops, triple tops and head and shoulders, well they do capture those, but they also capture the more complicate patterns. The Wyckoff approach analyzes the inner behavior of the price action to determine if Mr Market is about employ a mark up or down phase.

Let's face it, not all patterns break out into tradable trends, they can morph into another pattern. The approach below is the Wyckoff method for filtering out those accumulation and distribution patterns that lack clarity. The only pattern that would not suit this approach is a V reversal pattern as an accumulation or distribution base is not present, this pattern is rare, therefore we would say most of the time the Wyckoff approach is applicable.

Here are the headline phases of a stock price.

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Market Phase

Here are the Golden Gate University professors of the Wyckoff course talking about the 'Wyckoff phases'.

The Accumulation phase with Wyckoff sign posts.

Wyckoff Phases of Accumulation

Phase A: In phase A, supply has been dominant and it appears that finally the exhaustion of supply is becoming evident. The approaching exhaustion of supply or selling is evidenced in preliminary support (PS) and the selling climax (SC) where a widening spread often climaxed and where heavy volume or panicky selling by the public is being absorbed by larger professional interests. Once these intense selling pressures have been expressed, and automatic rally (AR) follows the selling climax. A successful secondary test on the downside shows less selling that on the SC and with a narrowing of spread and decreased volume. A successful secondary test (ST) should stop around the same price level as the selling climax. The lows of the SC and the ST and the high of the AR set the boundaries of the trading range (TR). Horizontal lines may be drawn to help focus attention on market behavior.

It is possible that phase A will not include a dramatic expansion in spread and volume. However, it is better if it does, because the more dramatic selling will clear out more of the sellers and pave the way for a more pronounced and sustained markup.

Where a TR represents a reaccumulation (a TR within a continuing up-move), you will not have evidence of PS, SC, and ST. Instead, phase A will look more like phase A of the basic Wyckoff distribution schematic. Nonetheless, phase A still represents the area where the stopping of the previous trend occurs. Trading range phases B through E generally unfold in the same manner as within an initial base area of accumulation.

Phase B: The function of phase B is to build a cause in preparation for the next effect. In phase B, supply and demand are for the most part in equilibrium and there is no decisive trend. Although clues to the future course of the market are usually more mixed and elusive, some useful generalizations can be made.

In the early stages of phase B, the price swings tend to be rather wide, and volume is usually greater and more erratic. As the TR unfolds, supply becomes weaker and demand stronger as professionals are absorbing supply. The closer you get to the end or to leaving the TR, the more volume tends to diminish. Support and resistance lines usually contain the price action in phase B and will help define the testing process that is to come in phase C. The penetrations or lack of penetrations of the TR enable us to judge the quantity and quality of supply and demand.

Phase C:In phase C, the stock goes through testing. It is during this testing phase that the smart money operators ascertain whether the stock is ready to enter the markup phase. The stock may begin to come out of the TR on the upside with higher tops and bottoms or it may go through a downside spring or shakeout by first breaking previous supports before the upward climb begins. This latter test is preferred by traders because it does a better job of cleaning out the remaining supply of weak holders and creates a false impression as to the direction of the ultimate move.

A spring is a price move below the support level of a trading range that quickly reverses and moves back into the range. It is an example of a bear trap because the drop below support appears to signal resumption of the downtrend. In reality, though, the drop marks the end of the downtrend, thus trapping the late sellers, or bears. The extent of supply, or the strength of the sellers, can be judged by the depth of the price move to new lows and the relative level of volume in that penetration.

Until this testing process, you cannot be sure the TR is accumulation and hence you must wait to take a position until there is sufficient evidence that markup is about to begin. If we have waited and followed the unfolding TR closely, we have arrived at the point where we can be quite confident of the probable upward move. With supply apparently exhausted and our danger point pinpointed, our likelihood of success is good and our reward/risk ratio favorable.

Phase D:If we are correct in our analysis and our timing, what should follow now is the consistent dominance of demand over supply as evidenced by a pattern of advances (SOSs) on widening price spreads and increasing volume, and reactions (LPSs) on smaller spreads and diminishing volumes. If this pattern does not occur, then we are advised not to add to our position but to look to close out our original position and remain on the sidelines until we have more conclusive evidence that the markup is beginning. If the markup of your stock progresses as described to this point, then you’ll have additional opportunities to add to your position.

Your aim here must be to initiate a position or add to your position as the stock or commodity is about to leave the TR. At this point, the force of accumulation has built a good potential as measured by the Wyckoff point-and-figure method.

In phase D, the markup phase blossoms as professionals begin to move into the stock. It is here that our best opportunities to add to our position exist, just as the stock leaves the TR.

Phase E: Depicts the unfolding of the uptrend; the stock or commodity leaves the trading range and demand is in control. Sell offs are usually feeble.

Wyckoff Accumulation Events

PS: Preliminary support, where substantial buying begins to provide pronounced support after a prolonged down-move. Volume increases and price spread widens, signaling that the down-move may be approaching its end.

SC: Selling climax, the point at which widening spread and selling pressure usually climaxes, as heavy or panicky selling by the public is being absorbed by larger professional interests at or near a bottom. Often price will close well off the low in a SC, reflecting the buying by these large interests.

AR: Automatic rally, which occurs because intense selling pressure has greatly diminished. A wave of buying easily pushes prices up; this is further fueled by short covering. The high of this rally will help define the upper boundary of an accumulation TR.

ST: Secondary test, in which price revisits the area of the SC to test the supply/demand balance at these levels. If a bottom is to be confirmed, volume and price spread should be significantly diminished as the market approaches support in the area of the SC. It is common to have multiple STs after a SC.

Shakeouts: (and or Springs) usually occur late within a TR and allow the stock’s dominant players to make a definitive test of available supply before a markup campaign unfolds. A “spring” takes price below the low of the TR and then reverses to close within the TR; this action allows large interests to mislead the public about the future trend direction and to acquire additional shares at bargain prices. A terminal shakeout at the end of an accumulation TR is like a spring on steroids. Shakeouts may also occur once a price advance has started, with rapid downward movement intended to induce retail traders and investors in long positions to sell their shares to large operators. However, springs and terminal shakeouts are not required elements..

Test: Large operators always test the market for supply throughout a TR (e.g., STs and springs) and at key points during a price advance. If considerable supply emerges on a test, the market is often not ready to be marked up. A spring is often followed by one or more tests; a successful test (indicating that further price increases will follow) typically makes a higher low on diminished volume.

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 the prior price 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.

The Distribution phase with Wyckoff sign posts.

Wyckoff Phases of Distribution

Phase A: In Phase A, demand has been dominant and the first significant evidence of demand becoming exhausted comes at preliminary supply (PSY) and at the buying climax (BC). It often occurs in wide price spread and at climactic volume. This is usually followed by an automatic reaction (AR) and then a secondary test (ST) of the BC, usually upon diminished volume. This is essentially the inverse of phase A in accumulation.

As with accumulation, phase A in distribution price may also end without climactic action; the only evidence of exhaustion of demand is diminishing spread and volume.
Where redistribution is concerned (a trading range within a larger continuing down-move), you will see the stopping of a down-move with or without climactic action in phase A. However, in the remainder of the trading range (TR) for redistribution, the guiding principles and analysis within phases B through E will be the same as within a TR of a distribution market top.

Phase B: The building of the cause takes place during phase B. The points to be made here about phase B are the same as those made for phase B within accumulation, except clues may begin to surface here of the supply/demand balance moving toward supply instead of demand.

Phase C: One of the ways phase C reveals itself after the standoff in phase B is by the sign of weakness (SOW). The SOW is usually accompanied by significantly increased spread and volume to the downside that seem to break the standoff in phase B the SOW may or may not “fall through the ice,” but the subsequent rally back to a “last point of supply” (LPSY), is usually unconvincing for the bullish case and likely to be accompanied by less spread and/or volume.

Last point of supply gives you your last opportunity to exit any remaining longs and your first inviting opportunity to exit any remaining longs and your first inviting opportunity to take a short position. An even better place would be on the rally that tests LPSY, because it may give more evidence (diminished spread and volume) and/or a more tightly defined danger point.

An upthrust is the opposite of a spring. It is a price move above the resistance level of a trading range that quickly reverses itself and moves back into the trading range. An upthrust is a bull trap — it appears to signal a start of an uptrend but in reality marks the end of the up-move. The magnitude of the upthrust can be determined by the extent of the price move to new highs and the relative level of volume in that movement.

Phase C may also reveal itself by a pronounced move upward, breaking through the highs of the trading range. This is shown as an upthrust after distribution (UTAD). Like the terminal shakeout in the accumulation schematic, this gives a false impression of the direction of the market and allows further distribution at high prices to new buyers. It also results in weak holders of short positions surrendering their positions to stronger players just before the down-move begins. Should the move to new high ground be on increasing volume and relative narrowing spread, and price returns to the average level of closes of the TR, this would indicate lack of solid demand and confirm that the breakout to the upside did not indicate a TR of accumulation, but rather a formation of distribution.

Successful understanding and analysis of a trading range enables traders to identify special trading opportunities with potentially very favorable reward/risk parameters. When analyzing a trading range, we are first seeking to uncover what the law of supply and demand is revealing to us. However, when individual movements, rallies, or reactions are not revealing with respect to supply and demand, it is important to remember the law of effort versus result. By comparing rallies and reactions within the trading range to each other in terms of price spread, volume, and time, additional clues may be discovered as to the stock’s strength, position, and probable future course.

It will also be useful to employ the law of cause and effect. Within the dynamics of a trading range, the force of accumulation or distribution gives us the cause and the potential opportunity for substantial trading profits. The trading range will also give us the ability, with the use of point-and-figure charts, to project the extent of the eventual move out of the trading range and will help us determine if those trading opportunities favorably meet or exceed our reward/risk parameters.

Phase D: Phase D arrives and reveals itself after the tests in phase C show us the last gasps or the last hurrah of demand. In phase D, the evidence of supply becoming dominant increases either with a break through the ice or with a further SOW into the trading range after an upthrust.

In phase D, you are also given more evidence of the probable direction of the market and the opportunity to take your first or additional short positions. Your best opportunities are at rallies representing LPSYs before a markdown cycle begins. Your legging in of the set of positions taken within phases C and D represents a calculated approach to protect capital and maximize profit. It is important that additional short positions be added or pyramided only if your initial positions are in profit.

Phase E: Depicts the unfolding of the downtrend; the stock or commodity leaves the trading range and supply is in control. Rallies are usually feeble.

Wyckoff Distribution Events

PSY: Preliminary supply, where large interests begin to unload shares in quantity after a pronounced up-move. Volume expands and price spread widens, signaling that a change in trend may be approaching.

BC: Buying climax, during which there are often marked increases in volume and price spread. The force of buying reaches a climax, and heavy or urgent buying by the public is being filled by professional interests at prices near a top. A BC often occurs coincident with a great earnings report or other good news, since the large operators require huge demand from the public to sell their shares without depressing the stock price.

AR: Automatic reaction. With demand substantially diminished after the BC and heavy supply continuing, an AR takes place. The low of this selloff helps define the lower boundary of a distribution TR.

ST: Secondary test, in which price revisits the area of the BC to test the demand/supply balance at these price levels. If a top is to be confirmed, supply will outweigh demand, and volume and spread should decrease as price approaches the resistance area of the BC. A ST may take the form of an upthrust (UT), in which price moves above the resistance represented by the BC and possibly other STs, then quickly reverses to close below resistance. After a UT, price often tests the lower boundary of the TR.

SOW: Sign of weakness, observable as a down-move to (or slightly past) the lower boundary of the TR, usually occurring on increased spread and volume. The AR and the initial SOW(s) indicate a change of character in the price action of the stock: supply is now dominant.

LPSY: Last point of supply. After testing support on a SOW, a feeble rally on narrow spread shows that the market is having difficulty advancing. This inability to rally may be due to weak demand, substantial supply or both. LPSYs represent exhaustion of demand and the last waves of large operators’ distribution before markdown begins in earnest.

UTAD: Upthrust after distribution. A UTAD is the distributional counterpart to the spring and terminal shakeout in the accumulation TR. It occurs in the latter stages of the TR and provides a definitive test of new demand after a breakout above TR resistance. Analogous to springs and shakeouts, a UTAD is not a required structural element: the TR in Distribution.

The re accumulation and re distribution phase with Wyckoff sign posts.
Re accum ir re dist1

This site has a tool to color zone the each phase (called 'Wyckoff Campaign Phases found in the Analysis chart object tool box).


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Wyckoff Phases

Terminology for the abbreviations as supplied by the article 'Wyckoff Schematics: Visual templates for market timing decisions'. More definitive information here

AR Automatic rally or reaction
BC Buying Climax
BOI Backing upto ice
BTI Breaking the ice
BUEC Backup to edge of creek
CREEK Critical support
FTI First time over ice
ICE Critical resistance
JAC Jumping across the creek (or JOC)
LPS Last point of Support (Demand)
LPSY Last point of Supply
MD Mark down
MU Mark up
PS Preliminary support (Demand)
PSY Preliminary supply
SOS Sign of strength
SOW sign of weakness
ST Secondary test
TSO Terminal shake out (Spring)
TUT Terminal thrust
UTAD Up thrust after distribution
SC  Selling Climax
Trading Range
UT Up thrust

The Wyckoff Stock Market Institute ( provides an excellent education program to get ahead with Richard Wyckoff logic, approves of their education material, but of course we prefer our charts, tools and scanner within for the live Wyckoff trade management.

Richard Wyckoff is an official affiliate of Wyckoff Stock Market Institute (or

NOTE: does allow users to load objects and text on charts, however some annotations are by a free third party image tool named

Investing Quote...

.."There is a time for all things, but I didn’t know it. And that is precisely what beats so many men in Wall Street who are very far from being in the main sucker class. There is the plain fool, who does the wrong thing at all times everywhere, but there is the Wall Street fool, who thinks he must trade all the time. Not many can always have adequate reasons for buying and selling stocks daily – or sufficient knowledge to make his play an intelligent play."...

Jesse Livermore

..“It is much harder to sell stocks correctly than to buy them correctly.” Because of the emotional aspect of trading, if a “stock went up, the average investor would hold because he wants more gains – he’s exhibiting greed. If the stock declines, he also holds on and hopes the stock will come back so he can at least sell and break even – he’s hoping against hope”..

Bernard Baruch

..“I buy on the assumption they could close the market the next day and not reopen it for five years” and “Much success can be attributed to inactivity. Most investors cannot resist the temptation to constantly buy and sell.”..

Warren Buffet

My experience has been that in successful businesses and fund management companies, which performed well over the long-term, some courageous decisions were taken. Courageous fund managers reduce their positions when markets become frothy and accumulate equities when economic and social conditions are dire. They avoid the most popular sectors, which are therefore over-valued, and invest in neglected sectors because being neglected by investors they are by definition inexpensive. The point is that it is very hard and that it takes a lot of courage for a fund manager to avoid the most popular sectors and stocks and to invest in unloved assets. Finally, every investor understands the principle ‘buy low and sell high’, but when prices are low nobody wants to buy.

Marc Faber

..“The main purpose of the stock market is to make fools of as many men as possible”..

Bernard Baruch

Created on: 5/18/2010 12:14:14 AM   Last Update: 6/10/2017 11:07:22 PM Posted by: RTT
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We at 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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