Wyckoff ACCUMULATION AND DISTRIBUTION (develop by Richard Wyckoff)
It involves 3 stages markup/markdown, Accumulation/distribution markup/markdown(depending on the trend)
ACCUMULATION (down trend to uptrend)
Price in a down trend would simply begin to lose momentom thus creating selling or buying climax(SC/BC)
Price would rally up after the selling climax thus this is called Automatically rally (AR)
Then a second test(ST) would be created price would test the previous low then push back up
Price would break the low Thus creating what we know as a spring this is done to sweep liquidity below the lows created, then price would break the highs creating what we know as a sign of strength (SOS) before finaly returning to a demand zone the real buying point (RBP) then the mark up begins
The opposite is for a distribution (up trend to downtrend)
It involves 3 stages markup/markdown, Accumulation/distribution markup/markdown(depending on the trend)
ACCUMULATION (down trend to uptrend)
Price in a down trend would simply begin to lose momentom thus creating selling or buying climax(SC/BC)
Price would rally up after the selling climax thus this is called Automatically rally (AR)
Then a second test(ST) would be created price would test the previous low then push back up
Price would break the low Thus creating what we know as a spring this is done to sweep liquidity below the lows created, then price would break the highs creating what we know as a sign of strength (SOS) before finaly returning to a demand zone the real buying point (RBP) then the mark up begins
The opposite is for a distribution (up trend to downtrend)