How to trade SD at the best by the wyckoff method

9/25/2018 Wyckoff Trading Method: How to Trade Supply Demand - Girolamo Aloe GIROLAMO ALOE How to Trade Supply and Demand at the Best by the Powerful Wyckoff Trading Method by Girolamo Aloe in Trading (https://www.girolamoaloe.com/category/trading/) (http://www.girolamoaloe.com/wp-content/uploads/2017/04/170403-Wyckoff-TradingMethod.jpg) How to Trade Supply and Demand at the Best by the Powerful Wyckoff Trading Method What is behind the Wyckoff Trading Method and the Supply and Demand willing? Why the Share this: Supply and Demand Imbalances de ne the price moving? Besides, why they rule the price  Let me show the hing   When you analyz  e ing and how it reacts converging to big orders In the same way, you recognize where the price is going So you  that it takes and how the moving happens Besides, you understand the see the direction ( ?share=facebook&nb=1) consolidation and the trend? Many people don’t know about the real structure of13the Markets ( ?share=twitter&nb=1) (https://www.girolamoaloe.com/wyckoff-trading-method/?share=linkedin&nb=1) (https://www.girolamoaloe.com/wyckoff-trading-method/?share=google-plus-1&nb=1) ( ?share=pinterest&nb=1) ( ?share=pocket&nb=1) role that a Price Consolidation has in all this Indeed you see how the institutional 1/44 9/25/2018 Wyckoff Trading Method: How to Trade Supply Demand - Girolamo Aloe role that a Price Consolidation has in all this Indeed, you see how the institutional investors work into the Range of Consolidation Describe all this, describe also how I trade and invest in Stocks and Bonds so as in Forex and Futures I have not to look for perfection to get my pro ts But I need to have clear the Structure of the Markets where I invest Then, I need to understand what rules the Price Range of Consolidation and the Trend Rotation Then, why the price moves in a speci c way Besides, I have to understand why it spikes up or down and how it is running The Supply and Demand Imbalances shows how Big Block Orders act The Wyckoff Trading Principles are the root of any Stock market technique In the same way, it is so for any other marketplace: Forex, Futures, Bonds and much more Every marketplace, Liquid or Non-Liquid, is the result of Orders that move the price Even if I earn in a constant way for the long-term, my learning process never ends What I with the Students of Pro ting.Me (https://pro ting.me/) is sharing with them my Trading Practice Then they see the practical applications of my knowledge and experience How Big Investors take their Block Trades Block Order “ Share this: A Tradable Financial Asset is a Security W hen Institutions or Traders set a Buy or Sell     A large number of Securities is an amount of shares that is very high For Penny Stocks  Traders 10.000 could seem like a very big amount of shares On Liquid Markets, engage 100.000 shares as a starting point Later, they can increase their Institutions can Block Order, t(h?share=facebook&nb=1) 13 ( ?share=twitter&nb=1) ( ?share=linkedin&nb=1) ( ?share=google-plus-1&nb=1) ( ?share=pinterest&nb=1) ( ?share=pocket&nb=1) exposure taking more shares I am talking about hundreds of thousands of dollars so as 2/44 9/25/2018 Wyckoff Trading Method: How to Trade Supply Demand - Girolamo Aloe exposure taking more shares I am talking about hundreds of thousands of dollars so as several millions of dollars on Orders (http://www.girolamoaloe.com/forex-time-frames/) “ The Wyckoff Trading Method so as Supply and Demand Imbalances are all around Block Orders and Block Trades Block Trade “ These Big Orders, that are Blocks of Securities, create Block Trades Involving a big number Securities, such Bulk of Trades can move the market in a consistent way This is possible by the rising of the volume of negotiations It is almost impossible for a simple retail trader to trade such big sizes Indeed, It is a prerogative of Hedge Funds and Institutional Investors They inject a large amount of money to the market by Intermediaries so as Investment Banks Block House “ A Block House is a particular brokerage rm that is speci c for large trades, charging high fees to the Investors Share this: It manages the big investments for Pension Funds, Academic Funds, Corporations, Banks to Insurance, and m  ( ?share=facebook&nb=1) 13 ( ?share=twitter&nb=1) (https://www.girolamoaloe.com/wyckoff-trading-method/?share=linkedin&nb=1)  It gives severalser levant is that a Block House trades the Big Block Orders in a careful way  (https://www.girolamoaloe.com/wyckoff-trading-method/?share=google-plus-1&nb=1) ( ?share=pinterest&nb=1) (https://www.girolamoaloe.com/wyckoff-trading-method/?share=pocket&nb=1) A Block House can manage the money with the focus on these points 3/44 9/25/2018 Wyckoff Trading Method: How to Trade Supply Demand - Girolamo Aloe A Block House can manage the money with the focus on these points: It manages the investment avoiding to induce high volatility to the market Keeping relations with brokers, it split the Block Order to different brokers It can inject the money into the market increasing the exposure in a gradual way looking to push the price Even if the Investor decides the Order Price, it looks for the best deal for trades “ A Block House has skills and relations to manage, in an easy way, orders of a big number of Securities In the modern age of Trading and Investing, the Block House seems like a broker with a direct account manager The difference is that the Block House manages Millions of Dollars per trade It is possible because the authority legitimises the Block House to get the necessary specialization to it How the Block House manages Block Orders and Block Trades Share this:       ( ?share=facebook&nb=1) 13 ( ?share=twitter&nb=1) (https://www.girolamoaloe.com/wyckoff-trading-method/?share=linkedin&nb=1) (https://www.girolamoaloe.com/wyckoff-trading-method/?share=google-plus-1&nb=1) ( ?share=pinterest&nb=1) ( ?share=pocket&nb=1) 4/44 9/25/2018 Wyckoff Trading Method: How to Trade Supply Demand - Girolamo Aloe (http://www.girolamoaloe.com/wp-content/uploads/2017/04/170403-WyckoffTrading-Method-Block-Orders.jpg) Wyckoff Trading Method – Block Orders Institutional Investors, Hedge Funds or Moneyed Traders ask help to their Block Houses They know that the Block House will manage their investments in the best way to get the best deals The Investor asks for an entry price But the Block House can make a deal for better entries with the Investors and with the brokers “ The Block House makes deals with brokers that are speci c for the marketplace Share this:     The splitting in chunks lets manage the trading of a lot of securities It could be dif cult or  impossible to trade a big number of Securities with only one broker It is so because of the the broker limits Besides, smaller blocks keep a low volatility regulations and The Block House splits the Block Order is smaller blocks to trade with different brokers ( ?share=facebook&nb=1) 13 ( ?share=twitter&nb=1) ( ?share=linkedin&nb=1) ( ?share=google-plus-1&nb=1) ( ?share=pinterest&nb=1) ( ?share=pocket&nb=1) 5/44 9/25/2018 Wyckoff Trading Method: How to Trade Supply Demand - Girolamo Aloe For short trades, the dif culty is bigger because the shares to short are fewer Then, it is necessary to borrow them at the right time This happens although big investors and their Block Houses have special privileges Expensive Execution Costs of the Block Trade There is a particular problem in this process It is how much a trade costs The splitting of a Block Order in Block Trades can become expensive The brokers charge a cost per trade and they can have different commissions Then, a bulk of trades has an executions cost that depends on the number of trades to open This means that for Block Orders in a marketplace, the Block House has to limit the number or trades In the same way, it has to limit the number of brokers and trading routes to execute the Block Trades Supply and Demand Disparity by the Block Trade Get or Liquidate a big number of Securities causes strong Imbalances in the market These actions affect the Supply and Demand willing around the Price in the market “ The Block House works to manage and cut the effect on the market of the Supply and Demand Disparity Share this:  The necessity to contain the volatility( ?share=facebook&nb=1) by the Block House could sound strange Indeed, it is very strange that Market Makers need to contain the volatility that they 1c3an cause But    “ Very StrongSup ch volatility  there is a speci c (rhtetpass:// ow nwfwo.gr irtolhaismoaloe.com/wyckoff-trading-method/?share=twitter&nb=1) (https://www.girolamoaloe.com/wyckoff-trading-method/?share=linkedin&nb=1) (https://www.girolamoaloe.com/wyckoff-trading-method/?share=google-plus-1&nb=1) ( ?share=pinterest&nb=1) ( ?share=pocket&nb=1) A M k tM k lik H d F d d S f t T tP i Thi i i 6/44 9/25/2018 Wyckoff Trading Method: How to Trade Supply Demand - Girolamo Aloe Any Market Maker, like a Hedge Fund, de nes a Safety Target Price This price is a safeguard for the interests of investors A Hedge Fund can earn a lot of money, taking acceptable risks It doesn’t need to charge the fund with the most of the unnecessary risks The safeguard price is a good average price that the current market can reach The Block House avoid that the Imbalance pushes the price away from the safety target The Wyckoff Trading Method, with the Trading Volume, exploits the Supply Demand Disparity Besides, it shows the effect of Block Trades that the Block Houses execute in a Time Interval So, in a Price Consolidation, the Wyckoff Trading Method shows how the Block Trades affect the market “ When the Block House executes a Large Block Order, it gives a direction to the price behavior So, the price can rise or drop marking a trend This favors the trading of the retail traders Indeed, the retailers can run for low-risk trades looking for the Institutional Investors Orders The Theory of the Composite Man to explain How the price moves According to Wyckoff Stock Market Institute, Richard Demille Wyckoff was a Trading Authority He was born 1873 and he was a trader and educator in stock, commodity and Share this: bond markets  As a Stock Marke  t A is way, he de ned the Wyckoff method of trading and investing in stocks  The Wyckoff Traing large numbers or Securities.Richard Wyckoff  introduced the conce ( ?share=facebook&nb=1) ( 13 ?share=twitter&nb=1) (https://www.girolamoaloe.com/wyckoff-trading-method/?share=linkedin&nb=1) ( ?share=google-plus-1&nb=1) pwt yockf otffhtera“diCngo-m oosdi/t?sehar Mea=pni”ntoerre“stC&n obm=1p) osite m/ mepth Operator”  (https://www.girolamoaloe.co ( ?share=pocket&nb=1) He wrote 7/44 9/25/2018 Wyckoff Trading Method: How to Trade Supply Demand - Girolamo Aloe He wrote: “ …all the uctuations in the market and in all the various stocks should be studied as if they were the result of one man’s operations Let us call him the Composite Man,… – Richard Wyckoff He means that it is not relevant if what moves the market is an Institutional Investors or others What is relevant is the impact that the trading of a large amount of Securities has in the market So, if you understand how the “Composite Man” moves the market you get a great advantage by low-risk trades “ The Composite Man is a tool to understand how the price moves How to go inside the mind of the Composite Man Share this:       ( ?share=facebook&nb=1) 13 ( ?share=twitter&nb=1) (https://www.girolamoaloe.com/wyckoff-trading-method/?share=linkedin&nb=1) (https://www.girolamoaloe.com/wyckoff-trading-method/?share=google-plus-1&nb=1) ( ?share=pinterest&nb=1) ( ?share=pocket&nb=1) 8/44 9/25/2018 Wyckoff Trading Method: How to Trade Supply Demand - Girolamo Aloe (http://www.girolamoaloe.com/wp-content/uploads/2017/04/170403-Wyckoff-TradingMethod-The-Composite-Man-accumulates-Securities.png) Wyckoff Trading Method – The Composite Man accumulates Securities Why is so important to go inside the “mind” of the Composite Man? The Composite Man does his Trading Job in every time and better than any other Then, you have to learn his behaviors and his actions following what he does What is clear to everybody is that the market doesn’t move by itself In the Price Consolidation, the Composite Man takes or liquids Securities in a gradual way When this number of securities is high enough, the market runs out of the price range of uncertainty This means that in a Demand Level, his Trades add more Securities in his portfolio Then, he is Accumulating Securities Instead, in a Supply Level, his Trades cut the numbers of Share this: Securities he owns Then, the Composite Operator is Distributing Securities to the   “ The Composite Man represents the joint action of the Market Makers   Studying and Practicing you get skills to see and master what moves the market In the  same way, you understand who moves the price  Market ( ?share=facebook&nb=1) 13 ( ?share=twitter&nb=1) ( ?share=linkedin&nb=1) ( ?share=google-plus-1&nb=1) (https://www.girolamoaloe.com/wyckoff-trading-method/?share=pinterest&nb=1) (https://www.girolamoaloe.com/wyckoff-trading-method/?share=pocket&nb=1) In a Liquid Market like Forex the Events in the Economic Calendar are not the cause that 9/44 9/25/2018 Wyckoff Trading Method: How to Trade Supply Demand - Girolamo Aloe In a Liquid Market like Forex, the Events in the Economic Calendar are not the cause that moves the market (http://www.girolamoaloe.com/how-hard-is-forex-trading/) Their action is very small and it doesn’t affect the market trend Studying and Observing the Forex Market time by time, you realize that this is so (http://www.girolamoaloe.com/wp-content/uploads/2017/04/170403-Wyckoff-TradingMethod-The-Composite-Man-distributes-Securities.png) Wyckoff Trading Method – The Composite Man distributes Securities Accumulation, Distribution, and Trend, in Supply and Demand ns:alysis of the Imbalances is what rewards I am a Supply and Demand Trader A detailSheardeathi   All this is possible studying the price action with dedication for the long-term Everything  ar s puts the trader in the condition tohave skills and experie comes from a cle nce to set orders days and weeks in advance.The Wyckoff Tra  ding Method takes me day by day M(y ?share=facebook&nb=1) 13 (https://www.girolamoaloe.com/wyckoff-trading-method/?share=twitter&nb=1) ( ?share=linkedin&nb=1) com/wyckoff-trading-method/?share=google-plus-1&nb=1) o wcyc oknosffi-dtraedriantg-ion eovd/e?snhtarhe= e piTnrtaerdeistn&gnbV=o1l)ume e.icnotm/ meth  (https://www.girolamoaloe (https://www.girolamoalo ( ?share=pocket&nb=1) The Trading Volume is very important on Non-Liquid Marketplaces like Low Price Stocks (http //www girolamoaloe com/forex trading strategies/) Indeed the Volume of 10/44 9/25/2018 Wyckoff Trading Method: How to Trade Supply Demand - Girolamo Aloe When a Spring or an Upthrust After Distribution occurs Traders could open a trade This is the consideration that traders They expect that the Composite Man pushes the price back into the Trading Range The Wyckoff Trading Method shows this advantage and it can pay very well But the market reaction after the pivot behind the distal line could not be a strong and large bounce back The reason is that the orders in opposition could stop the bounce several times This gives a choppy price action So, many times it is better to wait for the lower risk entries in the Wyckoff Phase D – Spring and Upthrust After Distribution are not necessary As I told, it is not necessary to have a Spring or an Upthrust After Distribution to reverse the trend Many times the remaining Demand willing or Supply willing is not enough So the price could not mark a pivot behind the distal line The decisive test could make converge the price to an edge of the Trading Range and bounce back In other cases, the action could be too weak to reach the top supply or the bottom demand In these situations, the price stays inside the Trading Range of Consolidation – The Volume of the Trading Negotiations Share this:  market  Trading Method, the Trading Volume can become a big help when you to In the Wyckoff take a trading decision  The Trading Volu  me Terminal Shakeout In the same way, it can show how to trade an Upthrust and the Upthrust After Distribution  The Trading Volu(m ?s shitaree=f Macaeb n oo is ka&fnfbe=c1)ting the 13 (https://www.girolamoaloe.com/wyckoff-trading-method/?share=twitter&nb=1) (https://www.girolamoaloe.com/wyckoff-trading-method/?share=linkedin&nb=1) ( ?share=google-plus-1&nb=1) ( ?share=pinterest&nb=1) ( ?share=pocket&nb=1) For example you can experience an increase of the volume with the rising or the falling of 26/44 9/25/2018 Wyckoff Trading Method: How to Trade Supply Demand - Girolamo Aloe For example, you can experience an increase of the volume with the rising or the falling of the price Later, you can see a slowing of the price rising or falling still having a high volume The price progression slows even if the volume is still high because it is going to get a balance Or better the Supply willing or the Demand willing is getting a strong opposition There is an increase of the negotiations in opposition to the trend This is a sign of a tiring trend and you could expect a price correction so as a consolidation So, now you understand the Third of the Three Wyckoff Laws “ The Law of Effort versus Result The Changing in the Volume Negotiations is the Effort and the Price Changing is the Result The Effort causes a Result and it is proportional with the Effort If the Effort and the Result are opposite you could expect a changing of the trend Low-Risk Entries in Wyckoff Phase A and Wyckoff Phase D The Wyckoff Trading Method shows you how to trade in the best way the Trading Range Share this: of Consolidation  This is possible bec rtant peculiarities   Indeed, the Wycko the low-risk opportunities In  the same way, you see where the risk of investment is instead very high Indeed, you want to trade wherethe risk is the lowest possible and not where the risk is the highest ( ?share=facebook&nb=1) 13 ( ?share=twitter&nb=1) (https://www.girolamoaloe.com/wyckoff-trading-method/?share=linkedin&nb=1) (https://www.girolamoaloe.com/wyckoff-trading-method/?share=google-plus-1&nb=1) ( ?share=pinterest&nb=1) ( ?share=pocket&nb=1) 27/44 9/25/2018 Wyckoff Trading Method: How to Trade Supply Demand - Girolamo Aloe In the Wyckoff Phase C, I showed you some crucial signs that let you understand the reversing of the trend They are fundamental because they can give you an acceptable risk for a trade in Phase D But the Trading Range has a beginning and an ending The beginning is the Wyckoff Phase A The ending of the consolidation is the Wyckoff Phase E “ In the Wyckoff Phase D, you can set your orders anticipating the reversing of the trend It shows also how the price reacts to take out a Supply or Demand Edge of the Trading Range So, you understand now where you get the lowest risk entries for your orders in the Trading Range Besides, you even have clear why they are in the Wyckoff Phase A and in the Wyckoff Phase D Stop of the Previous Trend in Wyckoff Phase A “ The Wyckoff Phase A is where the Trading Range of Consolidation begins The Supply and Demand willing stops the previous trend and it marks the rst edges of Share this: the Trading Range  The stopping ofthe c Steps:   Before to reach the reversal point, the price marks a Preliminary Imbalance to  continue the trend price converges to a strong level in opposition or mark the reversal point Later, the ( ?share=facebook&nb=1) ( 13 ?share=twitter&nb=1) (https://www.girolamoaloe.com/wyckoff-trading-method/?share=linkedin&nb=1) (https://www.girolamoaloe.com/wyckoff-trading-method/?share=google-plus-1&nb=1) (https://www.girolamoaloe.com/wyckoff-trading-method/?share=pinterest&nb=1) (https://www.girolamoaloe.com/wyckoff-trading-method/?share=pocket&nb=1) by a new imbalance From this Climax Imbalance it bounces back 28/44 9/25/2018 Wyckoff Trading Method: How to Trade Supply Demand - Girolamo Aloe by a new imbalance From this Climax Imbalance, it bounces back “ The Preliminary Imbalance gives the rst opposition to the trend This becomes a reference point in the Price Action The Block Trades opened in opposition increase the Volume of Negotiation (http://www.girolamoaloe.com/intradaytrading-rules/) But these trades are not enough to stop the trend So, later the trend continues “ A Climax Imbalance is where the large interests stop the trend The price progression speeds up going far away from the Preliminary Imbalance Later, new Block Trades in opposition are enough to stop the trend This increases the Volume again This Imbalance could be new or the result a convergence to an old Supply or Demand Level The Climax Imbalance has a High Relative Strength The prevailing of the opposite Block Trades generate an Automatic Reaction In the Wyckoff Trading Method, this Automatic Reaction is a consistent bounce back How to Earn by the Automatic Reaction in Wyckoff Phase A Share this:       ( ?share=facebook&nb=1) 13 ( ?share=twitter&nb=1) (https://www.girolamoaloe.com/wyckoff-trading-method/?share=linkedin&nb=1) (https://www.girolamoaloe.com/wyckoff-trading-method/?share=google-plus-1&nb=1) ( ?share=pinterest&nb=1) ( ?share=pocket&nb=1) 29/44 9/25/2018 Wyckoff Trading Method: How to Trade Supply Demand - Girolamo Aloe (http://www.girolamoaloe.com/wp-content/uploads/2017/04/170402-Wyckoff-TradingMethod-Wyckoff-Phase-A-Stop-of-the-Previous-Bearish-Trend.png) Wyckoff Trading Method – Wyckoff Phase A – Stop of the Previous Bearish Trend The Automatic Reaction could be immediate (or almost) giving a strong momentum The large bounce back could be so strong to reach the price range around the Preliminary Imbalance Later, the price turns back to approach again the Strong Imbalance This happens also showing a decreasing of the trading volume Besides, this price progression, up and down from the stopping of the previous trend, de nes the Trading Range They are the Preliminary Edges of the Trading Range Later, in the Wyckoff Phase B, these Preliminary Edges could get a further changing This Share this: happens by a new High Pivot and a new Low Pivot They mark new imbalances for a new   The Price Action in the Wyckoff Phase A is very easy to recognize The Composite Man  late securities or to distribute securities Indeed, the Wyckoff Phase A is begins to accumu the beginning of y, it is the beginning of a Supply Distribution  Supply Edge and(a?share=facebook&nb=1) 13 ( ?share=twitter&nb=1) (https://www.girolamoaloe.com/wyckoff-trading-method/?share=linkedin&nb=1) ( ?share=google-plus-1&nb=1) (https://www.girolamoaloe.com/wyckoff-trading-method/?share=pinterest&nb=1)  ( ?share=pocket&nb=1) Usually, the Wyckoff Phase A is a very pro table Price Correction (http //www girolamoaloe com/forex trading rules/) This can precede the breaking of 30/44 9/25/2018 Wyckoff Trading Method: How to Trade Supply Demand - Girolamo Aloe (http://www.girolamoaloe.com/forex-trading-rules/) This can precede the breaking of the previous trend Then, you get a pro table opportunity by the convergence to an old Supply or Demand Level The Block Trades generate the Automatic Reaction, by the convergence From this Climax Imbalance, the price spikes with a strong momentum to the next opposition So if you set your order in the convergence you earn a lot of money running the spike (http://www.girolamoaloe.com/wp-content/uploads/2017/04/170402-Wyckoff-TradingMethod-Wyckoff-Phase-A-Stop-of-the-Previous-Bullish-Trend.png) Wyckoff Trading Method – Wyckoff Phase A – Stop of the Previous Bullish Trend Share this: Reversing the Trend in Wyckoff Phase D  The Wyckoff Phases simplify the work and show several reference points With the Method, you can trade anticipating the new trend Wyckoff Trading   ( ?share=facebook&nb=1) 13 ( ?share=twitter&nb=1) ( ?share=linkedin&nb=1) (https://www.girolamoaloe.com/wyckoff-trading-method/?share=google-plus-1&nb=1) “   The Wyckoff P( h ?sehar w et=repinnd terest&nb=1) Th C ( ?share=pocket&nb=1) it M h l d d th t f th k i th i W k ff 31/44 9/25/2018 Wyckoff Trading Method: How to Trade Supply Demand - Girolamo Aloe The Composite Man has already done the most of the work in the previous Wyckoff Phases The remaining supply or demand willing in the Wyckoff Phase C made a test to continue the previous trend But, the opposite Block Trades prevailed by the accumulation or distribution of securities So, they pushed the price back into the Trading Range “ The momentum that arrives from the Wyckoff Phase C is ready to push throughout the Trading Range So, in the Wyckoff Phase D, the price moves to the other edge of the Trading Range To make this, the price action marks some peaks that keep up the momentum in a direction These are Points of Supply or Points of Demand in Wyckoff Phase D The rst of them offer the possibility to buy low or sell high inside the consolidation range “ When the price reaches the other edge, it is almost ready to go outside of the Trading Range The price can mark a High Pivot or a Low Pivot behind the Distal Line of the Edge reached This can happen showing also an increase in the Trading Volume It is a Sign of Strength in a Demand Accumulation In the same way, It is a Sign of Weakness in a Supply Distribution Share this:  range of uncertai nt Demand and the Low or High Pivot   How to Earn  A the Trend in Wyckoff Phase D  ( ?share=facebook&nb=1) The price could not go outside the Trading Range with an immediate action.13It begins a ( ?share=twitter&nb=1) ( ?share=linkedin&nb=1) ( ?share=google-plus-1&nb=1) ( ?share=pinterest&nb=1) ( ?share=pocket&nb=1) 32/44 9/25/2018 Wyckoff Trading Method: How to Trade Supply Demand - Girolamo Aloe (http://www.girolamoaloe.com/wp-content/uploads/2017/04/170403-Wyckoff-TradingMethod-Wyckoff-Phase-D-The-Price-rises-to-Supply-Edge.png) Wyckoff Trading Method – Wyckoff Phase D – The Price rises to Supply Edge In the Wyckoff Phase B and Wyckoff Phase C, the Operators push the price to a Supply or Demand Edge The purpose is to continue the previous trend Of course, at least one of the Edges of the Trading Range is a Persistent Level Every new test of a Persistent Level pushes the price back in a new weaker swing This marks a chain of Higher Lows so as a Chain of Lower Highs, inside the Trading Range In the Wyckoff Phase C, the Composite Man marks a Spring or an Upthrust after Distribution The strong imbalance pushes thethis: price back This could break the Pivots Share   this offers a The breaking ofeve mbalance In the Wyckoff Trading Method, Chain in the Trading Range moving the price to the Wyckoff Phase D ( ?share=facebook&nb=1) ( ?share=twitter&nb=1) 13 (https://www.girolar msotaltore a cdoim n/w g yockpopff-otrratdiunngi-tmye th Tohd/? e sphrairce=l e irnkeetdrian&cnebs=1b)ack to the broken Pivots Chain and converges to the new and fresh imbalance  In this way, you can ipating the reversing of the  trend Indeed, you Buy low in the Demand Accumulation by the throwback In the same  in the Supply Distribution way, you Sell high ( ?share=google-plus-1&nb=1) ( ?share=pinterest&nb=1) ( ?share=pocket&nb=1) 33/44 9/25/2018 Wyckoff Trading Method: How to Trade Supply Demand - Girolamo Aloe In these cases, the risk per trade is the lowest that the Trading Range can offer This rst peak keeps up the momentum to carry the price to the other edge of the Trading Range Running throughout the Trading Range, the price action will mark other entry points This gives you the possibility to add more to your trade, before of the Wyckoff Phase E Setting your orders to trade anticipating the reversing of the trend, you understand the Power of the Wyckoff Trading Method Share this: (http://www.girolamoaloe.com/wp-content/uploads/2017/04/170403-Wyckoff-Trading-   ( ?share=facebook&nb=1) 13 Method-Wyckoff-Phase-D-The-Price-drops-to-Demand-Edge.png) Cause andEffect in Wyckoff Phas (https://www.girolamoaloe.com/wyckoff-trading Wyck(of ?srh oaprset=towi Dtteemr& an nbd=E1)dge -method/?share=linkedin&nb=1) e B and W(y?share=google-plus-1&nb=1) ckoff Phase EI already mentioned the Second Law of   (https://www.girolamoaloe.co Wycykcokff-otrfad f: iTngh-m e et Lhaod/ w ?oshf aCrea=p uisnteeraesntd&nEbf=f1)ect m/w “  ( ?share=pocket&nb=1) All the Trading Range of Consolidation is a process that Build, Develop and Increase a C Thi ill i Eff t t th d fC lid ti 34/44 9/25/2018 Wyckoff Trading Method: How to Trade Supply Demand - Girolamo Aloe Cause This will give an Effect at the end of Consolidation The Wyckoff Phase C gives important reference points for your trading Instead, in the Wyckoff Phase D, you set your orders to trade anticipating the trend So, if you make the right analyze, the Effect in the Wyckoff Phase E gives you a large pro t Building a Cause in Wyckoff Phase B (http://www.girolamoaloe.com/wp-content/uploads/2017/04/170403-Wyckoff-TradingShare this: Method-Wyckoff-Phase-B-Accumulating-Securities.png)   The Wyckoff Phase B shows some speci c features: The price tends to have a choppy behavio   ( ?sh W uar laeti=f nagcSeebcouorki&tineb=1) s 13 ( ?share=twitter&nb=1) ( ?share=linkedin&nb=1) (https://www.girolamoaloe.com/wycko ff-rtrading-method/?share=google-plus-1&nb=1)   Man increases his exposure building a cause The Composite The remainin( g ?s t har to ec=opinnttienreuste&tnhb= e 1t)rend.3 It can change the Preliminary Edges of the Trading Range (https://www.girolamoaloe.com/wyckoff-trading-method/?share=pocket&nb=1) 35/44 9/25/2018 Wyckoff Trading Method: How to Trade Supply Demand - Girolamo Aloe In the most of the cases, the Wyckoff Phase B is not good for trading, because the chart is choppy You see the securities accumulation so as the securities distribution This is visible by the oating of the chart The large interests have a Speci c Goal: In a Supply Distribution, it is to exhaust as much as possible the remaining demand willing In a Demand Accumulation, it is to take as much as possible of the remaining supply willing They accumulate or distribute as much they can and this can take a long time Indeed, the Wyckoff Phase B is the longest phase in the Wyckoff Trading Method They this preparing and anticipating the markup or the markdown The price behavior can mark high pivots so as low pivots (http://www.girolamoaloe.com/successful-forex-traders/) Indeed, the Wyckoff Trading Method considers Upthrusts and the Secondary Imbalances Some of them happen behind the distal line of the Preliminary Edges They are Signals of Strength so as Signals of Weakness So, they mark a new Supply edge so as a new Demand edge of the Trading Range What you see is that the price action marks and tests demand and supply levels Besides, Share this: in a Trend Rotation, you see an edge of the Trading Range that becomes a Persistent Level       ( ?share=facebook&nb=1) 13 ( ?share=twitter&nb=1) (https://www.girolamoaloe.com/wyckoff-trading-method/?share=linkedin&nb=1) (https://www.girolamoaloe.com/wyckoff-trading-method/?share=google-plus-1&nb=1) ( ?share=pinterest&nb=1) ( ?share=pocket&nb=1) 36/44 9/25/2018 Wyckoff Trading Method: How to Trade Supply Demand - Girolamo Aloe (http://www.girolamoaloe.com/wp-content/uploads/2017/04/170403-Wyckoff-TradingMethod-Wyckoff-Phase-B-Distributing-Securities.png) Wyckoff Phase B – Distributing Securities Getting the Effect in Wyckoff Phase E Share this:   (http://www.girolamoaloe.com/wp-content/uploads/2017/04/170403-Wyckoff-Trading kup.png)  The Trading Ran ge koff Phase E It is the Effect of accumulation or distribution in the Trading Range  ( ?share=facebook&nb=1) 13 ( ?share=twitter&nb=1) ( ?share=linkedin&nb=1) Wyckoff Trading Method – Wyckoff Phase E – The Markup ( ?share=google-plus-1&nb=1) ( ?share=pinterest&nb=1) (https://www.girolamoaloe.com/wyckoff-trading-method/?share=pocket&nb=1) “ I W k ff T di M th d Si f St th Si fW k i W k ff Ph 37/44 9/25/2018 Wyckoff Trading Method: How to Trade Supply Demand - Girolamo Aloe In Wyckoff Trading Method, Signs of Strength so as Signs of Weakness in Wyckoff Phase D, are the last step They show the Block Houses that accumulate or distribute more securities This happens before to leave behind the Trading Range of Consolidation “ The rising or the drop makes clear the new trend by a Markup or a Markdown So, the Trading Range becomes a Demand Accumulation or a Supply Distribution The Demand willing prevails and then the price rises in a Markup So as the Supply willing prevails and then the price drops in a Markdown “ Any new trend is not linear, the price rises or drop marking steps Every step exists because a new imbalance keeps up the trend momentum So, new Block Trades take or release more Securities on the way to reach the next trend rotation You understand that any relevant price correction could be an opportunity to trade, accepting the risk (http://www.girolamoaloe.com/forex-trading-journal/) This means that Share this: you set an order to follow the trend The reason is that any price correction marks a new  ( ?share=facebook&nb=1) Supply or Demand Level 13    The price can eve  n Then, the price goes far away from the trend by a relevant momentum In this case, the bounce back would be an  to begin a new Consolidation Automatic Reaction ( ?share=twitter&nb=1) (https://www.girolamoaloe.com/wyckoff-trading-method/?share=linkedin&nb=1) (https://www.girolamoaloe.com/wyckoff-trading-method/?share=google-plus-1&nb=1) ( ?share=pinterest&nb=1) ( ?share=pocket&nb=1) 38/44 9/25/2018 Wyckoff Trading Method: How to Trade Supply Demand - Girolamo Aloe The bounce back can happen in ways: By a convergence to a Supply or Demand Level in opposition Marking a new imbalance before to reach a visible old and strong level So, the new Automatic Reaction shows the Wyckoff Phase A for a new Trading Range of Consolidation (http://www.girolamoaloe.com/wp-content/uploads/2017/04/170403-Wyckoff-TradingMethod-Wyckoff-Phase-E-The-Markdown.png) Wyckoff Trading Method – Wyckoff Phase E – The Markdown Share this:  ( ?share=facebook&nb=1) Conclusion      13 ( ?share=twitter&nb=1) (https://www.girolamoaloe.com/wyckoff-trading-method/?share=linkedin&nb=1) (https://www.girolamoaloe.com/wyckoff-trading-method/?share=google-plus-1&nb=1) ( ?share=pinterest&nb=1) ( ?share=pocket&nb=1) 39/44 9/25/2018 Wyckoff Trading Method: How to Trade Supply Demand - Girolamo Aloe (http://www.girolamoaloe.com/wp-content/uploads/2017/04/170402-Wyckoff-TradingMethod-Wyckoff-Estate.jpg) Wyckoff Trading Method – Wyckoff Estate Richard Wyckoff has become so rich, to live in an estate with and a half acres in long island Becoming richer, Richard Demille Wyckoff turned his focus on Education, Teaching, and Publishing The Price Action is everything and the Wyckoff Trading Method shows all you need for trading You see how your perception of trading Share this:changes when you see all the   ff ur trading: The Three Wycko  peculiarities ( ?share=facebook&nb=1) ( 13 ?share=twitter&nb=1) (https://www.girolamoaloe.com/wyckoff-trading-method/?share=linkedin&nb=1) Law of Supply Demand  Law of Effort versus Result   ( ?share=google-plus-1&nb=1) The Law of C(hattupss:/ e /awnww d Egifrfoleacmoaloe.com/wyckoff-trading-method/?share=pinterest&nb=1) t (https://www.girolamoaloe.com/wyckoff-trading-method/?share=pocket&nb=1) What they show you is how the market move what is the cause and how to measure the 40/44