Federal Reserve Open Committee Meeting Days, like today, can be quite volatile. Many traders take the day off. I like Fed Days. Our method of trading is particularly well-suited for days in which volatility expands. When the markets are active, the indications of buying and selling become clear. Just before the Fed announcement, the market (S&P e-minis) pushed down. … [Read more...]
They Don’t All Work: UpThrusts and the Recency Effect
Nothing is 100%. That includes the Wyckoff Method. Even the best trade setups will fail. That's the nature of this game. It's all about probabilities. This morning before the US Open, we saw a good sell-off. The market then pulled back and set up an UpThrust at #1. Everything looked fine for a nice trade. But a nice trade didn't happen. Instead, a minor Spring propelled … [Read more...]
A Solid Approach from Down Under
A trader from Australia wrote to me saying he had a very good start to his week using the 3,000 tick chart and market structure to place his trades in the S&P e-Minis. That's a nice combination. I have been using tick charts since the early 2000's. We've had to adjust them from time to time because of the increasing trading activity, but they are a very nice chart to … [Read more...]
Trade Entry
Many traders place extra emphasis on trade entry. They look to buy as near as possible to the low tick or sell near the high. If a market starts to move and the trader missed getting in near the extreme tick, they look elsewhere thinking opportunity has passed them by. Too bad. Sometimes, it is difficult to get in near the high or the low. Markets have become more volatile … [Read more...]
Springs!
Springs are my bread & Butter trade. No doubt about that. They were first described by Bob Evans, a great teacher of the Wyckoff Method. Wyckoff had talked about something similar in a terminal shake out at the end of a prolonged trading range. It was Evans who saw other applications of the flush, which he described as a Spring. For the swing traders (also day traders … [Read more...]
