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    Basic Wyckoff Distribution

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    Lucable
    The document summarizes the Basic Wyckoff Scheme of Distribution, which describes the process by which large operators distribute (sell) stock and take profits by transferring shares from strong to weak hands. It outlines the five phases of distribution: Phase A sees the stop of an uptrend and setting of support; Phase B involves construction of cause within the range; Phase C tests commitment; Phase D shows a bearish trend within the range; and Phase E exhibits an out of range downtrend. Key terms like automatic reaction, buying climax, and signs of weakness characterize each phase of the distribution process.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Basic Wyckoff Distribution

    Uploaded by

    Lucable
    27 views2 pages
    The document summarizes the Basic Wyckoff Scheme of Distribution, which describes the process by which large operators distribute (sell) stock and take profits by transferring shares from strong to weak hands. It outlines the five phases of distribution: Phase A sees the stop of an uptrend and setting of support; Phase B involves construction of cause within the range; Phase C tests commitment; Phase D shows a bearish trend within the range; and Phase E exhibits an out of range downtrend. Key terms like automatic reaction, buying climax, and signs of weakness characterize each phase of the distribution process.

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    Wyckoff Distribution outlined on one page

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    Basic_Wyckoff_Distribution

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    The document summarizes the Basic Wyckoff Scheme of Distribution, which describes the process by which large operators distribute (sell) stock and take profits by transferring shares from strong to weak hands. It outlines the five phases of distribution: Phase A sees the stop of an uptrend and setting of support; Phase B involves construction of cause within the range; Phase C tests commitment; Phase D shows a bearish trend within the range; and Phase E exhibits an out of range downtrend. Key terms like automatic reaction, buying climax, and signs of weakness characterize each phase of the distribution process.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    27 views2 pages

    Basic Wyckoff Distribution

    Uploaded by

    Lucable
    The document summarizes the Basic Wyckoff Scheme of Distribution, which describes the process by which large operators distribute (sell) stock and take profits by transferring shares from strong to weak hands. It outlines the five phases of distribution: Phase A sees the stop of an uptrend and setting of support; Phase B involves construction of cause within the range; Phase C tests commitment; Phase D shows a bearish trend within the range; and Phase E exhibits an out of range downtrend. Key terms like automatic reaction, buying climax, and signs of weakness characterize each phase of the distribution process.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    Basic Wyckoff Scheme of Distribution - RWM

    DISTRIBUTION: The Process by which large operators distribute (sell) their stock
    and take their profits. This is the transfer from the strong operators (“strong
    hands”) to the retail operators (“weak hands”)

    THE ICE - Level of support for distribution or redistribution structures. It is established by the
    minimum generated by the Automatic Reaction and by the minimums that can be developed
    during PHASE B.
    CHoCH - Change of Character. It indicates the environment in which the price will move soon.
    The first CHoCH is established in PHASE A where the price moves from an upward trend
    environment to a consolidation environment. The second CHoCH is set from the maximum of
    PHASE C to the minimum of the SOW in which the price moves from a consolidating
    environment to a downward trend environment.

    PHASE A - The stop of the previous uptrend

    PSY - Preliminary Supply. It’s the first attempt to stop the climb that will ALWAYS fail

    BC - Buying Climax. Climate action that stops the upward movement.

    AR - Automatic Reaction. The bearish reaction. Bearish movement that sets the minimum
    range

    1
    ST - Secondary Test. Test of the level of demand in relation to climate action. Establishes the
    end of PHASE A and the beginning of PHASE B

    PHASE B - The Construction of the Cause

    UT - Upthrust. Same event as accumulation UA. Temporary breakout of the resistance and re-
    entry into the range. This is a test at the maximum generated by the BC.
    The mSOW - Minor Sign of Weakness. Same event as ST as SOW of accumulation. Temporary
    break of the support and re-entry to the range. This is a test at the minimum generated by the
    AR.

    PHASE C - Test

    UTAD. - Upthrust After Distribution. It is a test in the form of breakout of the maximums of
    PHASE A and B.
    UTAD test - An upward movement that goes up to check the level of commitment of the buyers.

    PHASE D - Bearish Trend Within Range

    MSOW - Major Sign of WEakness. Bearish movement originated after the PHASE C test event
    that manages to reach the bottom of the range generating a character change.
    LPSY - Last Point of Supply These are the decreasing highs we find in the bearish movement
    towards support.

    PHASE E - Bearish trend out of Range. Succession of SOW and LPSY generating a dynamic of
    diminishing maximums and minimums. The downtrend which will lead into the next accumulation
    phase, or a redistribution phase.

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