Wyckoff Principles within Principles
Wyckoff Principles within Principles
https://stockcharts.com/articles/wyckoff/2022/04/wyckoff-principles-within-prin-656.html
Trouble for the S&P 500 Index became apparent last September when an outsized decline arrived. Downward volatility with volume expansion (presence of Supply) characterized the decline into October, touching the demand trendline. Bulls were relieved by the near vertical rise into November which included a new high in the index. Two attributes of that rally had clues and warnings regarding exhaustion of the larger advance in force since the March 2020 lows. There was the sharp and persistent advance of the index which could be viewed as a Buying Climax (BC). Second was the acceleration of that rally as it culminated on high volume. Once a Climax (BC or SC) and Automatic Reaction (AR) occur, a range-bound condition is expected, and that is what came next. Roman Bogomazov and I evaluated this structure as it was unfolding in our weekly ‘Wyckoff Market Discussion’ (see below for a complimentary invitation to attend the upcoming WMD on April 6th).
Dr. Hank Pruden often discussed the concept of ‘Principles within Principles’ in our Wyckoff Method classes. This concept is at work throughout the recent stock market structure. Let’s profile one of those here. Green Shoots emerged in February / March during the test of the ‘Sign of Weakness’. This could be seen in internal breadth characteristics, sentiment studies and the throw under of the downward trend channel (as an oversold condition). Also Point and Figure (PnF) count objectives were being fulfilled (more on this below).
https://stockcharts.com/articles/wyckoff/2022/04/wyckoff-principles-within-prin-656.html
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