Wyckoff Strategies and Techniques studies the basic Wyckoff concepts and principles and then shows students how to get the most out of their Wyckoff Tool Kit. It also includes many of the lessons I have learned during my 40 years as a Wyckoff student. The charts that accompany the text are of recent market action. Every concept is supported by an accompanying chart that helps the reader understand and appreciate the value of these wonderful trading tools.
If you are looking for an easy automatic method to make money in the stock market, this book will disappoint. Too many traders spend a great deal of time and money trying to find easy mechanical methods that will tell them when to buy and sell stocks. In truth, the only people that make money are those that sell those “easy” automatic methods.
The Wyckoff strategies and techniques are filled with important indicators like Buying and Selling Climaxes, Springs and Upthrusts, Signs of the Strength and Weakness, to name a few. If these are treated like mechanical indicators, without a basic understanding of their supply and demand relationships, opportunities will be lost and, even worse, bad trades will be made.
These indicators are simply signposts that tell the experienced Wyckoff student that a potential opportunity lies ahead. It is that students responsibility to then analyze the stock’s activity to see if the price and volume relationships warrant taking a position. The experienced Wyckoff student will use the criteria established in the Position Sheets, Buying and Selling Tests and the other Wyckoff Tools to determine if a position should be taken. They should also develop a trading action plan. The plan will include a written summary that includes:
- Why the position was taken and what the stock will do in the immediate future
- An objective area where a successful trade can be terminated and profits taken.
- A specific price where the trade should be closed, if the stock does not behave as expected.
Trading in the stock market is hard work. The stock market is a cruel mistress. If you are looking for an easy way to make money and not committed to putting in the time for extra study and analysis, this book is not for you.
- ANALYZING THE MARKET
- THE MARKET INDEX AND CORE STOCKS
- USING CHARTS
- STRENGTH AND WEAKNESS
- WHEN STOCKS GET READY TO MOVE
- ACCUMULATION & ENDING ACTION
- DISTRIBUTION & ENDING ACTION
- DETERMINING MARKET TRENDS
- ANALYZING THE STOCK MARKET USING THE WYCKOFF TOOLS
- FINDING THE WINNERS
- GETTING READY TO TRADE
Wyckoff Strategies and Techniques: Finding and Trading Winning Stocks By James E. O'Brien pdf