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The mechanics of the markets are so complicated that one must break
it down into some foundational guidelines that encompass the whole,
then build upon that foundation slowly and methodically until it
makes sense and becomes a high probability, low risk undertaking.
by Jerry Garner jr
by Jerry Garner jr
by Jerry Garner jr
Whckoff Schematics
1. Wyckoff empowers the traderanalyst with a balanced, whole
brained approach to technical
analysis decision making. The
schematics provide picture diagrams as a right-brained tool to
complement the left-brained analytical checklists furnished by the
Wyckoff three laws and nine tests.
2. One objective of the Wyckoff
method of technical analysis
is to improve market timing
when establishing a speculative
position in anticipation of a
coming move where a favorable
reward/risk ratio exists to justify
taking that position.
3. To be successful, you must be able
to anticipate and correctly judge
the direction and magnitude of
the move out of the TR.
Trading ranges are places where the previous move has been halted
and there is relative equilibrium between supply and demand. It is
here within the TR that campaigns of accumulation or distribution
develop in preparation for the coming bull or bear trend. It is this
force of accumulation or distribution that can be said to build a
cause that unfolds in the subsequent move.
Whckoff Schematics
1. Wyckoff empowers the traderanalyst with a balanced, whole
brained approach to technical
analysis decision making. The
schematics provide picture diagrams as a right-brained tool to
complement the left-brained analytical checklists furnished by the
Wyckoff three laws and nine tests.
2. One objective of the Wyckoff
method of technical analysis
is to improve market timing
when establishing a speculative
position in anticipation of a
coming move where a favorable
reward/risk ratio exists to justify
taking that position.
3. To be successful, you must be able
to anticipate and correctly judge
the direction and magnitude of
the move out of the TR.
Phases of Accumulation
1. Lines A and B define support of
the trading range, while lines C
and D define resistance.
2. Phase A: To stop a downward
trend either permanently or
temporarily.
3. Phase B: To build a cause within
the trading range for the next
effect and trend.
4. Phase C: Smart money tests
the market along the lower and/
or the upper boundaries of the
trading range. Here one observes
springs and/or jumps and
backups.
5. Phase D: Defines the line of least
resistance with the passage of the
nine buying tests.
6. Phase E: The mark up or the
upward trending phase unfolds.