The Wyckoff Method is surely a robust trading method once you learn how to apply it and also once you learn to trust it. Trading in the S&P e-Minis during the US morning session today was textbook.
Anticipating Today’s Action Yesterday
In last night’s post, I indicated that yesterday, the market held its gains well and that more upside progress was likely. I also noted that a dip back below yesterday’s low (1343.00) would set up a great buy opportunity, and it did. You can read that post by clicking here. But let’s see how our straightforward Wyckoff Method along with the Weis Wave and the use of the 3-10 Oscillator put us on the right side of the market at every turn this morning.
Wyckoff UpThrusts
The market rallied in the Globex session into the multi-day high at 1356.50. This set up our first trade just after the US open – a Wyckoff upthrust. This is noted at A on the 3,000 Tick Chart. Note the rather heavy volume depicted by the Weis Wave, but the lack of follow-thorough to the upside in price. This is the Wyckoff principle of effort vs result and set us up for a nice upthrust. And what an upthrust it was!.
If a market is unable to rally above a narrow range day high (yesterday’s high), then the odds favor it will retest yesterday’s low. That was our target. On the way down, we see another upthrust at B. We can see on the Weis Wave that there was only minimal demand at this point.
Wyckoff Spring
The market does indeed dip below yesterday’s low as we anticipated. As it does, we see some shortening of the thrust and a sudden lack of supply at C with some bullish price behavior in that area. We know from our longer-term charts that this is also a support area. We can buy here aggressively looking for a rally back above yesterday’s low to create a Wyckoff spring.
We come back to yesterday’s low at D and find little supply. This is a test of the spring.
Trending, 3-10 Oscillator & Weis Wave
A little higher, we have a 3-10 Oscillator buy setup, which is a more conservative entry after the spring.
We rally back up to the overnight high and set up another 3-10 oscillator trade at F. Note the Weis Wave confirms the lack of supply here, indicating higher prices.
Springs, upthrusts, the Weis Wave, and trend trading with the 3-10 oscillator are the basic tools used every day, day-in and day-out. We show you the exact tools we use every day. Check out our practical tools by clicking the links below:
Learn to trade the Wyckof Spring
Learn to trade the Wyckoff UpThrust
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