Luiz - Dec. 8,2014

EXERCISE
-Provide your phase analysis

-Label the trading range as it unfolds
- Make trades: entry, SL and exit
January 20, 2014
Advanced WYCKOFF Course 4
Prepared by Roman Bogomazov
PHASING of Wyckoff Accumulation trading ranges:

Phase A:
Purpose:
1. Stop the decline
2. Exhibit the first signs of intelligent accumulation (Thank you, Bruce)
Selling Climax (SC) can be three types:
1. Big spread/Big volume;
2. An area of SC with local TR that can take more than 2-3 days to
develop;
3. Small spread/Low volume SC means either intermediate SC and
lower prices ahead or exhaustion of supply during the later phases of
bear market.
Automatic Rally (AR) usually is the first counter trend rally that is bigger than
most of the previous rallies.
Secondary Test (ST) can be two types:
1. Local test of the Selling Climax (Phase A);
2. Secondary Test area which tests the validity of stopping action of
Phase A (appears in Phase B!!!).
3. Test of a #2 Spring which tests a spring (appears in Phase C!!!)
January 20, 2014

Phase B:
Purpose:
1. To retest a stopping action of Phase A;
2. To work on the exhaustion of supply;
3. To define strength in future leading stocks.
Secondary Test Area can have several points of Secondary Test. Penetration of SC
and local ST to SC area means either further consolidation or more decline.
On the contrary, higher ST in Phase B would suggest an evidence of strength
and potential future leadership.
Upthrust action after secondary test means either active covering of the shorts or
initial strength.
Notable observations:
The most important analysis during Phase B is volume analysis. Supply has to be exhausted
before demand becomes present.
Penetration of support and resistance clusters will give us the clues for how long a stock might
consolidate and/or whether we can expect higher/lower prices. Lower area of STs means
more consolidation and possible lower prices at the next phase and can be labeled as SOW.
Higher area of STs means potential strength and can lead to upthrust action.
Upthrust is quite common occurrence during Phase B. If an upthrust action after initial SC and ST
happens too fast, expect a retest of SC+ST area. This will create a Mountain structure with
upthrust as the highest point.
Phase B is the most volatile and difficult phase of any TR to trade. Long-term investors/traders
should avoid initiating position during Phase B unless there are signs of strength.
January 20, 2014

Phase C:
Purpose:
1. To retest a support area of either Phase A or Phase B;
2. To exhaust remaining supply;
3. To catch traders on the wrong side of a trade.
Spring #1 is an evidence of continuing supply and is a continuation of a
decline.
Spring #2 is the most common occurrence among accumulation springs
Spring#3 is the least common occurrence among accumulation springs
Shakeout is much faster and deeper than #2 spring and is usually coincided
with market decline.
Failed Spring has the same intention to retest the support lows, but fails
because of the underlying strength. It creates a higher low and
indicates lack of supply and readiness to advance (demand). It is a
stronger pattern than Spring 1-2 and a shakeout.
Notable observations:
The reversal signal at the support level in Phase C puts a stock on a Springboard.
Springboard is a point of no return from which price should advance firstly in the TR
(from support to beyond resistance JAC as a SOS) and then above the resistance
of the BUC (Markup phase starts here). Stocks with extra strength can potentially
Jump across the creek during Phase C.
The first high probability trade can be established closer to the end of Phase C on the
reversal pattern. If identified correctly, the price should not come back to the same
area.
February 24, 2014

Phase D:
Purpose:
1. To advance a stock to higher ground of the trading range and
beyond;
2. For demand to have a control;
Jump across the Creek as a SOS
Backup to the Creek
Shakeout LPS is a potential event after JAC that will scare lots of traders.
Usually it happens during decline of overall market and/or because of
unexpected stock event. The best indication of potential continuing
movement after shakeout is a higher low formed by a shakeout.
Phase E:
Purpose:
1. To advance a stock beyond accumulation trading range;
2. For demand to be in full control with short periods of weakness
(reactions and reaccumulation ranges).
February 24, 2014
STOP!
Conversation:
How does absorption of Supply happen in a trading range?
SUPPLY Signatures for Different Wyckoff Phases (Accumulation)
Example of Supply Absorption - I

A
C
Supply in Phase C occurs is higher than at
the SC or ST of Phase B Supply needs to
be absorbed at higher price levels before
price moves out of the range
Springboard POE
Example of Supply Absorption - II

A
B
C
Test in Phase B occurs on lower

Supply, but it is still a substantial
volume means more absorption into
Phase C should happen before price
moves out of the range
Springboard POE
Secondary Test in Phase B
Example of Supply Absorption - III

B
Test in Phase B occurs on higher
Supply that needs to be tested Phase
C should see Supply at lower levels
before price moves out of the range
A
C
C
Springboard POE
SOW as a Secondary Test in Phase B
Example of Supply Absorption - IV

C
Supply in Phase C is the highest than out

of all phases a higher low test with
decreased Supply should occur before
price can move out of the range
C
Springboard POE
SUPPLY Signatures for Different Wyckoff Phases (Distribution)

Note: These are NOT ALL Supply signatures for Distribution TRs
Example of Supply Absorption V (Distribution)

Re-Distribution TR
A
Supply is steadily increase through Phases

A to D making the biggest downward price
progress in Phase D
D
A+B
November 25, 2013
Wyckoff Supply & Demand Mini-Course
Example of Supply Absorption V (Distribution)

A
B
Biggest Supply comes in Phase A Distribution on the

way down (Teepee formation). Both Supply and
Demand contract throughout TR structure with
subsequent increase in Supply in Phase D or E.
November 25, 2013
STOP!
Conversation:
Can Supply signature be the same for Accumulation and Distribution?
If YES, then how do we differentiate Accumulation from Distribution?
Exercise: Same stock, same Supply signature What is the difference?
November 25, 2013

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EXERCISE

-Provide your phase analysis

January 20, 2014

Advanced WYCKOFF Course 4

Prepared by Roman Bogomazov

PHASING of Wyckoff Accumulation trading ranges:

January 20, 2014

Advanced WYCKOFF Course 4

Prepared by Roman Bogomazov

PHASING of Wyckoff Accumulation trading ranges:

January 20, 2014

Advanced WYCKOFF Course 4

Prepared by Roman Bogomazov

PHASING of Wyckoff Accumulation trading ranges:

Advanced WYCKOFF Course 4

Prepared by Roman Bogomazov

PHASING of Wyckoff Accumulation trading ranges:

February 24, 2014

Advanced WYCKOFF Course 4

Prepared by Roman Bogomazov

SUPPLY Signatures for Different Wyckoff Phases (Accumulation)

Example of Supply Absorption - I

Example of Supply Absorption - II

Test in Phase B occurs on lower

Example of Supply Absorption - III

SOW as a Secondary Test in Phase B

Example of Supply Absorption - IV

Supply in Phase C is the highest than out

SUPPLY Signatures for Different Wyckoff Phases (Distribution)

Example of Supply Absorption V (Distribution)

Supply is steadily increase through Phases

November 25, 2013

Wyckoff Supply & Demand Mini-Course

Prepared by Roman Bogomazov

Example of Supply Absorption V (Distribution)

Biggest Supply comes in Phase A Distribution on the

November 25, 2013

Wyckoff Supply & Demand Mini-Course

Prepared by Roman Bogomazov

If YES, then how do we differentiate Accumulation from Distribution?

Exercise: Same stock, same Supply signature What is the difference?

November 25, 2013

Wyckoff Supply & Demand Mini-Course

Prepared by Roman Bogomazov

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