BITCOINCASH - How i analyse cryptocurrency with wyckoff!

2019年7月12日

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Hello traders investors and community, today i want to share with you an example on how to analyze with the wyckoff market theory.
There is an interesting example of an wyckoff distribution which i detected in BCHUSD, formed the last days.

The wyckoff market theory is an approach to determine a reversal in the market wether it is up or down (Accumulation and Destribution).
Today i want to show an real example of an distribution (reversal to the downside) happening in BCHUSD, it is already in the end-stages of the pattern.

I marked all phases and price-levels with the correct describtion and will explain now further.
It is more an psychological indicator which indicates take-profits and sell-offs from large operators.
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Lets get to the technical side:
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Phase A

- Marks the stopping of the prior uptrend.
- Up to this stage demand has been dominant.
- Supply is entering the market.
- PSY (preliminary supply) - Large interest unload their positions, volume expands and price spread widens.
- BC (buying climax) - Buying reaches a climax with heavy volume and momentum, FOMO by public, take profit by professionals.
- AR (automatic reaction) - Heavy supply and volume takes place and pushes price down > exactly seen in the chart.
- ST (secondary test) - Price revisits the area of BC to test the supply/demand balance, supply must outweight demand.
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Phase B

- Building a cause for a new downtrend
- Professionals unloading LONG positions and opening SHORT positions.
- Exhaustion of as much demand possible from professional market participants.
- SOW (sign of weakness) - a move to or slightly pas the lower boundarie of trading range, weak demand and strong supply.
- UT (upthrust) - price-move above resistance also known as shake-out, provides a definite test of the demand/supply balance.
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Phase C

- Bull-trap
- Shows it self via an upthrust or uphrust after distribution.
- Price move above the trading range resistance.
- Professionals misleading public about future price moves and selling at favorable prices before mark-down begins.
- UTAD (upthrust after distribution) - A UT or UTAD is a price move above resistance, trapping the public in a bull-trap.
Sometimes a UT happens only or an UT and UTAD. It is also a test of the demand/supply balance.
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Phase D

- Forms after the UTAD in phase C shows last demand.
- Phase D shows supply is clearly dominant.
- Clear break of support.
- LPSY (last point of supply) - Price has bad issues to advance higher and supply pushes price down, weakness shows with
low volume rallys such as an triangle (seen in my chart), also it is trading below the 50 and 100 EMA (crossover happened).
- SOW (sign of weakness) - increased momentum and volume pushes price down, supply is now dominant.
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Phase E

- Shows the final confirmation of down-trend.
- Supply is now completely dominant while sell volume and momentum increases.
- Normally marked with a failed rally to support.
- Best point to open a short position because downtrend is confirmed.
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We are currently in the last stages of Phase D. Phase E will occur the next day. Probably i will update.
For more insight information support with a follow.
May all the happiness come to you folks!
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2019年7月12日

註釋

Volume is confirming every Phase as you can See in my Chart

2019年7月13日

註釋

For People unfamiliar with meanings of Supply or demand give a Follow i will explain further

2019年7月14日

註釋

Hi friends, i am glad to update this analysis. As we can see Phase E is beginning!

2019年7月17日

註釋

After a test of the PSY line, BCHUSD is now in phase E of the distribution.

2019年7月29日

註釋

BCHUSD is in phase E now as we can see it is consolidating below support

2019年10月5日

註釋

twitter.com/VincePrince244