Indicator Library: Richard Wyckoff Method

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Richard Wyckoff method
The originator of this method is from the writings of Richard D Wyckoff.
1. Jesse Livermores Secret To
Success At the age of 15-years old, he became a stock runner, scurrying back and
contact with several the most important and influential traders Wall Stree
2. Home page investor image Andrew Carnegie, along with many others, all in an effort to develop his o
explanation
why it moved, and profited from it. Wyckoff methods were successfully ap
3. The great crash 1929 in the 1920's). The newsletter became the darling of Wall Street traders.
4. Dear NewBie Investor The October 2002 issue of Stocks and Commodities magazine featured an
charting the markets.” This walk through history led Penn to identify five
5. How Wall Street works Nelson Elliott, Wim Delbert Gann, Arthur A. Merrill, and Richard D. Wycko
of technical analysis: The concepts of accumulation/distribution and the s
6. How to win in the stock
market
Wyckoff saw the economic principles of supply and demand at work throu
7. Commandments to follow key to to forecasting future market movements. These observations led W
8. 10 Rules for Investing The Law of Supply and Demand
When there is an excess amount of something (supply) the value of that
9. How to survive a stock market
crash
the value of that item will increase to create the supply that will meet tha
10. William J ONeil, CANSLIM The Law of Cause and Effect

In order for there to be an effect (change in price), there needs to be a c
11. Barry Ritholtz keep it simple time to allow for a period of accumulation or distribution (or in other wor
stupid
The Law of Effort vs Results
12. Gerald Loeb how to win
Simply stated, if there is an effort, the result must be in proportion to tha
13. Paul Tudor Jones II
effort as the volume on a move, and the result is the corresponding price
why? What is happening? This is where we become the detective, use ou
14. Felix Zulauf based on the “balance of probabilities”.
15. Sir John Templton Richard Wyckoff took a five step approach to stock selection
1) Determine the present position and probable future trend of the marke
16. Warren Buffett 2) Select stocks in harmony with the trend.
17. Reading the tape
3) Select stocks with a “cause” that equals or exceeds your minimum obj
4) Determine the stocks’ readiness to move.
18. Indicators Introduction 5) Time your commitment with a turn in the stock market index.
19. Richard Ney method
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20. Richard Wyckoff method The above approach Mr Richard Wyckoff believed allowed the retail trade
21. Richard Wyckoff Waves of …"all the fluctuations in the market and in all the various stocks sho
Price and Volume theory, sits behind the scenes and manipulates the stocks to
22. Richard Wyckoff is a success
understand it.”..
story
Richard Wyckoff believed the composite man acted in the stock market lik
23. Richard Wyckoff logic not in summer to sell in winter. It is a simple manner of managing stock float
working, this maybe why? of the merchandising operation].) Richard Wyckoff believed that just like
best results (and the same for distribution and mark down).
24. Richard Wyckoff studied
Jesse Livermore
Wyckoff was proof that a great trader was not born or had mystical powe
25. Bob Evans, renowned a detailed step by step plan. With no confusion or gaps in explanation tha
Wyckoff teacher best understand wyckoffian logic and methods the following texts are a m
26. Tim Ord, Secret Science of Below are the best books and PDFs of Richard Wyckoff Logic.
Price and Volume
Studies in Tape Reading
27. William Gann method
Jesse Livermore's Methods of Trading in Stocks
28. William Gann life story
Best Trading Lessons of Jesse Livermore
Charting The Stock Market, The Wyckoff Method
29. William Gann Law of Making It in the Market: Richard Ney's Low-Risk System for Stock M
Vibration Master The Markets (book or pdf) and/or The Undeclared Secrets Th
Wyckoff Schematics: Visual templates for market timing decisions (
30. Jim Hurst method
Wyckoff Associates, Inc course book1: Method of Tape Reading
31. Wyckoff method improved1 Wyckoff Associates, Inc course book2: Tape Reading and Active Tra
Bob Evans (Wyckoff teacher,founder Wyckoff Associates) audio tape
32. Wyckoff method improved2
These books are a great and best place to start:
33. Original Wyckoff and Wyckoff
2.0
34. Wyckoff 2.0 vs Others
35. Wyckoff 2.0 and Volume

Spread Analysis
36. Powerful Patterns
37. Elliot Waves
38. Price Action
39. Market Statistics
40. Cycles for short term

speculation
You can find more information on the education page and via our
41. Stop Loss methods
42. Alpha Stock Scanner

The Wyckoff Way
43. Swing Scanner
44. Flash Charts
45. RTT Market Timer
46. RTT Wyckoff Short Term

model
47. Chart Drawing Tools
2 of 18 5/25/2019, 2:42 PM
48. Standard Indicators
49. Proprietary Indicators (PI)
50. Multi Time Frame (PI)
51. PI: RTT TrendStatus
52. PI: RTT Squeeze
53. PI: RTT TrendPower OBV
54. PI: RTT On Balance Volume
55. PI: RTT VolumeWave
56. PI: RTT Rainbow Bands
57. PI: RTT Volume
58. PI: RTT MarketPulse
59. PI: RTT Steps of Cause and

Effect
60. PI: RTT Wyckoff Strength

Weakness
61. PI: RTT Wyckoff Price Waves
62. PI: Proprietary Indicators

Caution
When you understand the Wyckoffian phases of the market, you can dete
trend, change of trend and price action. Consider the below application o
63. What we do?
For more detail on the Wyckoff phase labels: Wyckoff Schematics: Visual
NOTE: Annotations placed on the chart via Paint. Net
Click for popup. Clear your browser cache if image is not showing.
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Here is a example of Richard Wyckoff Price action road map.
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How did Wyckoff Trade: In short he traded the phase known as 'price ma
then purchase shares on the dips (assuming the volume conditions warra
'distribution' phases within the market.
Wyckoff interviewed many famous traders of his time, this is how he lear
the index, select the strongest stocks within the sector (strength was me
breeze.
Wyckoffian logic has found its way into a wide variety of modern day text
We acknowledge that Wyckoff implemented nine strict rules for the execu
we acknowledge them and treat them as a guide only.
Readtheticker.com annotation tools are excellent for tracking Wyckoffian

5 of 18 5/25/2019, 2:42 PM
Viewing price and volume action on a daily, weekly and monthly charts ar
the 15th, then 15th to end of the month), we see these as just right for a
Tom Williams is a master of the Richard Wyckoff method. Tom took the m
Analysis (VSA), and it warrants your attention to learn this art. However
Wyckoff method, they also assume that trading VSA can be applied with
method to be successful. As stated above Richard Wyckoff invested when
should be used to formulate a view of price action, but when the Wyckoff
are every bit as critical as the VSA view.
You can learn more on the subject through Tom Williams books listed on
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multi time frame. The next chart shows you how to apply VSA to both the
You can also use our Point and Figure charts to complete the Wyckoff acc
In more detail, the Richard Wyckoff price target calculation :

7 of 18 5/25/2019, 2:42 PM
Point and Figure charts are also used for Wyckoff Price Wave Analysis, k
In Tim Ord's book (The Secret Science of Price and Volume) he explains h
float traded each day and swing. The results are always very interesting w
data from short squeeze.com )
8 of 18 5/25/2019, 2:42 PM
Richard Wyckoff also uses the indicator called the Optimism Pessimism In
to use our own proprietary RTT_PriceVolume indicators that highlights the
Here is an example of RTT Volume indicators with RTT Squeeze to review

Richard Wyckoff incorporated the 'Wyckoff Wave' (Our symbol: @RTWWV

Applying Hurst and Gann together tools only adds further value to the ch
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Other site tools like the percentage trailing stop can help monitor the mo
that change momentum.
The nine rules for buying (long) into the markup process after an accumu
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
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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 distr
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 e
1) Determine the present position and probable future trend of th

2) Select those stocks that are in harmony with the market
3) Select those stocks that have built a cause for a potential m
4) Determine the stock’s readiness to move and then analyze th
5) Time your commitments with a turn in the general market
The Wyckoff mapping process is fun and as it puts sign posts on the char
just a mirror of the standard technical analysis of double tops, triple tops
Wyckoff approach analyzes the inner behavior of the price action to deter
Let's face it, not all patterns break out into tradable trends, they can mor
distribution patterns that lack clarity. The only pattern that would not sui
therefore we would say most of the time the Wyckoff approach is applica
Here are the headline phases of a stock price.

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Here are the Golden Gate University professors of the Wyckoff course talk
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
a widening spread often climaxed and where heavy volume or panicky selling by the public is be
climax. A successful secondary test on the downside shows less selling that on the SC and with
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of the SC and the ST and the high of the AR set the boundaries of the trading range (TR). Horizo
It is possible that phase A will not include a dramatic expansion in spread and volume. However
markup.
Where a TR represents a reaccumulation (a TR within a continuing up-move), you will not have
represents the area where the stopping of the previous trend occurs. Trading range phases B th
Phase B: The function of phase B is to build a cause in preparation for the next effect. In pha
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 gr
the end or to leaving the TR, the more volume tends to diminish. Support and resistance lines u
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 sm
higher tops and bottoms or it may go through a downside spring or shakeout by first breaking p
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 mo
though, the drop marks the end of the downtrend, thus trapping the late sellers, or bears. The e
penetration.
Until this testing process, you cannot be sure the TR is accumulation and hence you must wait t
arrived at the point where we can be quite confident of the probable upward move. With supply
Phase D:If we are correct in our analysis and our timing, what should follow now is the consi
(LPSs) on smaller spreads and diminishing volumes. If this pattern does not occur, then we are
the markup is beginning. If the markup of your stock progresses as described to this point, then
Your aim here must be to initiate a position or add to your position as the stock or commodity is
In phase D, the markup phase blossoms as professionals begin to move into the stock. It is here
Phase E: Depicts the unfolding of the uptrend; the stock or commodity leaves the trading ran
Wyckoff Accumulation Events
PS: Preliminary support, where substantial buying begins to provide pronounced support after a
SC: Selling climax, the point at which widening spread and selling pressure usually climaxes, as
SC, reflecting the buying by these large interests.
AR: Automatic rally, which occurs because intense selling pressure has greatly diminished. A wa
accumulation TR.
ST: Secondary test, in which price revisits the area of the SC to test the supply/demand balance
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 playe
close within the TR; this action allows large interests to mislead the public about the future tren
Shakeouts may also occur once a price advance has started, with rapid downward movement in
required elements..
Test: Large operators always test the market for supply throughout a TR (e.g., STs and springs)
followed by one or more tests; a successful test (indicating that further price increases will follo
SOS: Sign of strength, a price advance on increasing spread and relatively higher volume. Often
LPS: Last point of support, the low point of a reaction or pullback after a SOS. Backing up to an
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
the “back up to the creek” represented both short-term profit-taking and a test for additional su
of forms, including a simple pullback or a new TR at a higher level.
The Distribution phase with Wyckoff sign posts.
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Wyckoff Phases of Distribution
Phase A: In Phase A, demand has been dominant and the first significant evidence of deman
This is usually followed by an automatic reaction (AR) and then a secondary test (ST) of the BC,
As with accumulation, phase A in distribution price may also end without climactic action; the on
Where redistribution is concerned (a trading range within a larger continuing down-move), you
the guiding principles and analysis within phases B through E will be the same as within a TR of
Phase B: The building of the cause takes place during phase B. The points to be made here a
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 o
phase B the SOW may or may not “fall through the ice,” but the subsequent rally back to a “last
Last point of supply gives you your last opportunity to exit any remaining longs and your first in
that tests LPSY, because it may give more evidence (diminished spread and volume) and/or a m
An upthrust is the opposite of a spring. It is a price move above the resistance level of a trading
reality marks the end of the up-move. The magnitude of the upthrust can be determined by the
Phase C may also reveal itself by a pronounced move upward, breaking through the highs of the
impression of the direction of the market and allows further distribution at high prices to new bu
move to new high ground be on increasing volume and relative narrowing spread, and price retu
of accumulation, but rather a formation of distribution.
Successful understanding and analysis of a trading range enables traders to identify special trad
of supply and demand is revealing to us. However, when individual movements, rallies, or reacti
reactions within the trading range to each other in terms of price spread, volume, and time, add
It will also be useful to employ the law of cause and effect. Within the dynamics of a trading ran
give us the ability, with the use of point-and-figure charts, to project the extent of the eventual
Phase D: Phase D arrives and reveals itself after the tests in phase C show us the last gasps
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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 op
Your legging in of the set of positions taken within phases C and D represents a calculated appro
profit.
Phase E: Depicts the unfolding of the downtrend; the stock or commodity leaves the trading
Wyckoff Distribution Events
PSY: Preliminary supply, where large interests begin to unload shares in quantity after a pronou
BC: Buying climax, during which there are often marked increases in volume and price spread. T
occurs coincident with a great earnings report or other good news, since the large operators req
AR: Automatic reaction. With demand substantially diminished after the BC and heavy supply co
ST: Secondary test, in which price revisits the area of the BC to test the demand/supply balance
resistance area of the BC. A ST may take the form of an upthrust (UT), in which price moves ab
boundary of the TR.
SOW: Sign of weakness, observable as a down-move to (or slightly past) the lower boundary of
stock: supply is now dominant.
LPSY: Last point of supply. After testing support on a SOW, a feeble rally on narrow spread show
exhaustion of demand and the last waves of large operators’ distribution before markdown begi
UTAD: Upthrust after distribution. A UTAD is the distributional counterpart to the spring and term
resistance. Analogous to springs and shakeouts, a UTAD is not a required structural element: th
The re accumulation and re distribution phase with Wyckoff sign posts.
This site has a tool to color zone the each phase (called 'Wyckoff Campaig
Example
15 of 18 5/25/2019, 2:42 PM
Terminology for the abbreviations as supplied by the article 'Wyckoff Sche
Fundamentals are important, and so is market timing, here at readtheticker.co

most, after all these methods have been used successfully for 70+ years. To he
16 of 18 5/25/2019, 2:42 PM
NOTE: readtheticker.com does allow users to load objects and text on charts, h
Investing Quote...
.."I believe that uncontrolled basic emotions are the

these emotions sit on the edge of the psyche, waiting
Jesse Livermore
After a question on how to become a better investor
Charlie Munger
.."Money can't buy you happiness but it does bring yo
Spike Milligan
The minute you get away from the fundamentals – w

of your game.
Basketball Legend Michael Jordan.
..."This [Federal Reserve Act] establishes the most g

government of the monetary power will be legalized.
bill."...
Charles August Lindbergh Snr
Created on: 5/18/2010 12:14:14 AM Last Update: 1/29/2018 12:02:29 PM Posted by: RTT
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and must be weighted equally before investing or trading in any Stock, ETF, Currency, Bond, Commodi
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Richard Wyckoff method https://www.readtheticker.com/Pages/IndLibrary.aspx?65tf=84_richard-...

Home Charts & Market Blog RTT Tv Services Information Mobile

Indicator FAQs Search Investment Market World Symbols Education

Search the content of this page:

10. William J ONeil, CANSLIM The Law of Cause and Effect

19. Richard Ney method

34. Wyckoff 2.0 vs Others

35. Wyckoff 2.0 and Volume

36. Powerful Patterns

37. Elliot Waves

38. Price Action

39. Market Statistics

40. Cycles for short term

42. Alpha Stock Scanner

44. Flash Charts

45. RTT Market Timer

46. RTT Wyckoff Short Term

47. Chart Drawing Tools

48. Standard Indicators

49. Proprietary Indicators (PI)

50. Multi Time Frame (PI)

51. PI: RTT TrendStatus

52. PI: RTT Squeeze

53. PI: RTT TrendPower OBV

54. PI: RTT On Balance Volume

55. PI: RTT VolumeWave

56. PI: RTT Rainbow Bands

57. PI: RTT Volume

58. PI: RTT MarketPulse

59. PI: RTT Steps of Cause and

60. PI: RTT Wyckoff Strength

61. PI: RTT Wyckoff Price Waves

62. PI: Proprietary Indicators

NOTE: Annotations placed on the chart via Paint. Net

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

Readtheticker.com annotation tools are excellent for tracking Wyckoffian

In more detail, the Richard Wyckoff price target calculation :

Here is an example of RTT Volume indicators with RTT Squeeze to review

Richard Wyckoff incorporated the 'Wyckoff Wave' (Our symbol: @RTWWV

6) Higher Bottoms: Reason To move.

1) Determine the present position and probable future trend of th

Here are the headline phases of a stock price.

The Accumulation phase with Wyckoff sign posts.

Wyckoff Phases of Accumulation

Wyckoff Accumulation Events

The Distribution phase with Wyckoff sign posts.

Wyckoff Phases of Distribution

SOW into the trading range after an upthrust.

Wyckoff Distribution Events

The re accumulation and re distribution phase with Wyckoff sign posts.

Terminology for the abbreviations as supplied by the article 'Wyckoff Sche

Fundamentals are important, and so is market timing, here at readtheticker.co

.."I believe that uncontrolled basic emotions are the

After a question on how to become a better investor

.."Money can't buy you happiness but it does bring yo

The minute you get away from the fundamentals – w

Basketball Legend Michael Jordan.

..."This [Federal Reserve Act] establishes the most g

Charles August Lindbergh Snr