In Trades About to Happen, veteran trader David Weis explains how to utilize the principles behind Wyckoff’s work and make effective trades with this method. The purpose of book is to show how one can logically interpret bar charts and wave charts to find trades about to happen.
Author’s Introduction:
In the studies that appear throughout this book, we will:
– Compare effort of the buying or selling with the reward (i.e., volume versus upward or downward progress).
– Watch for ease of movement or lack of movement (i.e., wide price bars versus narrow price bars).
– Consider the meaning of the close within the range of a price bar.
– Watch for shortening of upward or downward thrust.
– Watch for follow‐through or lack of follow‐through after penetrations of support/resistance (this includes the notion of springs and upthrusts).
– Watch for tests of high‐volume or “vertical” areas where price accelerated upward or downward.
– Consider the interaction of price with trend lines, channels, and support/resistance lines, which often highlight the price/volume story.
In the second half of this book, I will introduce adaptations I have made to Wyckoff’s original tape‐reading tools, which are better suited for the enormous volatility of today’s stock and futures markets. These can be applied to intraday and daily price movement, and software has been created for use in real time.
After reading this book, I guarantee you will never go back to the previous way you viewed charts. I have no secrets and will teach all I know about Wyckoff and price/volume behavior. Confucius said: “A true teacher is one who knows (and makes known) the New, by revitalizing the Old.”
Contents:
- Where to Find Trades
- Drawing Lines
- The Story of the Lines
- The Logic of Reading Bar Charts
- CSprings
- Upthrusts
- Absorption
- Chart Studies
- Tape Reading Part I
- Tape Reading Part II
- Point & Figure and Renko