Original subtitles

Hello, everyone. Today is January 28th, and this is our session number four of

the Wyckoff Trading Course.

Just FYI, I am sick. I'm not feeling well, so I do not know how long I can

go on with the class. Maybe I'll feel that as I start talking

more, it kind of comes back to me and I have more energy.

I'm totally on drugs right now.

And, you know, hopefully that will just carry me through the class. If we can't

finish, you know, at least two hours or two and a half hours, then, you know,

I'll just find some time to extend other classes and we'll just compensate for

the lost time like that.

All right. Having said this, I'm excited to be here.

I went through your homework again just because I've been feeling so bad,

especially today and throughout the whole weekend.

I looked at your homework.

So I opened all of them. I have not answered all of you.

So that's kind of like, you know, what's going on.

My overall impression of the homework was that we're definitely on a good

There are some of the mistakes that are common mistakes.

We'll talk about this as we review the distribution homework.

Hopefully, we'll start it today, if not next week.

But I've noticed one thing. There is definitely a trend of improvement that's

happening for the whole group.

So that's what is so good and exciting that I see

how the boundaries are much better. I see how the labeling is much better. So

we're definitely doing a lot of good things.

All right, next session, February 4th in a week.

What will we be discussing?

Let's just go to the outline right away. So today, we're still going to review

the homework from last week on Home Depot, and I will try to go a little bit

faster.

Maybe we'll not have the volunteers for that. Maybe we'll have some volunteers

for the distribution labeling. So we'll try to cover as much as possible.

And then still to cover, actually, we've covered phase boundaries, right? So

we've covered phase boundaries. We've covered phase C identification.

I think, yes, so all of this, sprints and shakeouts, signs of strength,

and downslope and trading range, those are going to be discussed.

distribution, and then the next homework on Microsoft.

So this homework is going to be interesting because this is usually the

when I let you guys do the homework, you send it to me, but then I give you the

homework as slides, you know, not necessarily we're going to discuss it in

classroom.

And then next session, we're going to finish our price structural analysis.

is going to be the final session on price structural analysis.

That doesn't mean that we will not use it in other months.

We're still going to use price structural analysis so much

during our supply and demand sessions.

And session number five will be the last one on the price structural analysis.

Okay, let's come back.

All right.

As usual, all of our discussions are for educational purposes only.

And we're going to start with the Q &A, just one question, or rather one slide.

And this slide and question comes from Justin.

And by the way, guys, if you have in your mind some kind of question like,

why are we discussing this particular question?

Well, first of all, because I picked it.

Secondly, I see value of this discussion right now because we're discussing the

price structural analysis as number one, so we could go through that.

And then it definitely has that feel of the current market, so

it's great. Some of you are sending me requests of look at the

chart and comment.

So usually this is not the class to do this. I mean, like, unless you are right

on the money with the material that we are going through, then I might consider

this. My suggestion, and we have such a beautiful venue to do this, you know, to

go through the analysis of stocks that are like last bought stocks, right?

It's the Wednesday class, like of market discussion class.

So you could submit your chart there.

Bruce and I will discuss it together.

Obviously, I can't do it every time, every session.

You really, really would have to sign up for the class, meaning that you'll have

to be a member of that class. But once in a while, I'll let you guys in,

and we do this once a semester. At the end of the whole cycle, I'll invite you

for one of those sessions.

All right, so let's come back to the slide, and we're looking at Home Depot.

Home Depot again.

So a few questions here. In accumulation, does backing up action

volume all of the time? So that's question number one.

And if it does, is that where you want to enter a position?

Second question, do sprints LPS always happen on reversal candle or hammer,

right?

And then the last question in the diagram below, it looks like the circle

major sign of weakness, but then it continues upward back into the trading

form in the high load. Does that make the circle a spring instead?

So very good questions, Justin, and let's address those one by one.

So backing up action, does it always happen on low volume?

No, it doesn't have to be on the low volume. The volume could increase.

the volume signature like this, right in this area right here. So what would it

mean? How would you interpret this?

Well, we would be thinking that with the volume increase, there is a lot of

institutional participation, right? There is a lot of exchange of shares.

How do we know the bias of institutional participation here?

What do you think, guys?

Well, we have to look at the price, right? So we know that they would be

with the increased volume signature.

But we need to look at the price to see what that signature actually does, what

that effort actually does.

Does it push the price below the area of the support into the low?

Does the price have the ability to stay up in this area?

And it seems to me that it's holding up. It doesn't go down. Today was kind of

like a day like this.

And that suggests that there is on the higher

volume signature that institutions are present, but they're buyers.

They're absorbing whatever supply is coming with that big volume signature.

Now, in reality, you know, it's different, right?

It's a different volume signature. So we see how supply increases and then how

supply starts to decrease.

So we have a decrease of the supply into the backing up action.

So not necessarily that we have to have a low volume signature. It's preferable.

But then if we do have a high volume signature, then we need to look at the

result. In both cases, the result is actually good.

And we would be actually thinking here that we are in some kind of downslope

information where we have the commitment above the

sloping resistance as a sign of strength and then a backing up action that backs

up exactly into the area of the support that acted before as the resistance. And

look how all of these four points are working very nicely.

Let's go right away into the question about a sign of weakness or a spring.

So I would approach it from two different perspectives.

The first one is we are looking at what has happened recently.

So, for instance, what has happened in this area.

We're seeing that there is a very substantial rally.

is much better than the rallies that we've seen before in this trading range.

So that tells us that there is some kind of change of character that is

happening. And then we've seen the reaction that is not the same as the

that we've seen in the trading range.

So that's also a confirmation of that change of character. Change of character

for what? Well, we've been in the downtrending environment even with

lower highs and lower lows going into a potential spring. We're still in the

downtrend by the definition, although this looks already as a consolidation.

So this change of character on the way out and the way the character of this

change of character, best rally and then very shallow reaction

suggests that the bias is actually to the upside.

And if the bias is to the upside and we look at the area of the support and we

see the price just temporarily committing below, then this is most

spring and not a sign of weakness.

A sign of weakness here I think could be, a spring could

be confused for the sign of weakness here if we look at the horizontal

structure.

because the commitment below is quite significant. There are one, two, three

closes below the area of the support, actually, the support cluster here.

So that view might be actually not the most

favorable. I would still use these lows and highs to connect them together and

look at how the price commits just temporarily at the end of this move.

Maybe there are two closes, but there is definitely one that commits

significantly.

And then everything else is on the upside.

Also, for the buys, we kind of see this area, which is very interesting.

It's an increase in uptrend.

And also we see how momentum increases behind it.

And it puts the price.

quickly to the opposite velocity starts to increase so those could be the

elements of either significant deterioration of the supply or some

behind it and in this case i think that majority of the time has been done here

here and even on the way down here because institutions don't function like

retail traders they're always thinking about the value and liquidity

opportunities to get in into the position so it seems to me that this is

the value zone is right here um here we're seeing all this buying

and then as the price goes below the value zone it becomes extreme value

and this is just my view for the whole market it's from the extreme value in

where we're still technically in the long -term

uptrend cycle, right, since 2009 lows.

So until we break the lows that were created in December, we're still going

be thinking about that. So think for a second that the long -term bias is up.

So what is this?

quick decline means for the market in this particular stock well it means that

uh short term we had some kind of shakeout type of action and then the

creates that extreme value that is very attractive to institutions another way

of looking at this is just looking at the overall signature here volume

signature now it definitely increased over what well over this whole period

right here

So there is some buying in this area, and that's why I'm thinking it's

to the upside.

Do sprints, LPS, always happen on the reversal candle? For example, hammer.

There are so many ways how that could happen.

You could have a hammer. You could have just the bar that's going to close.

the bodies of the previous bars.

There are so many ways of how a reversal could happen. We will be studying that

later on in the fourth month.

Philip is asking, what is the angle of the price movement that is interpreted

uptrend, downtrend instead of the trading rate?

I think this is a really good question because that's something that produces

that

you know, possible mistakes. I've seen people, you know, showing me something

like this, where it is clearly an uptrend, and yet they would start

like this, phase A, phase B, phase C, something like this. This is definitely

not correct.

Definitely not correct.

So I'm not sure about the angle, though, right? So Philip is asking about the

angle. But what I'm pretty much sure is that the way how the structure

unfolds. Look at the character of the down move right here. What do we see on

the opposite side of this reaction?

All of the counter move are very, very mediocre.

There is no lift in those. So it just tells us that the cell still persists

and that the bars cannot have...

you know a good meaningful rally and it's only comes here on the automatic

which becomes a change of character right away so you know that the change

character is going to suggest a trading range for consolidation and then once

you start seeing lower highs and lower lows that's when you try to connect them

and see uh if it would make sense um to see the price deviate around the mean

And if you could see that, then it's definitely a trading range. And it's a

downsloping range because of the lower highs and lower lows.

But I wouldn't be thinking necessarily in terms of the end goal. I would be

thinking in terms of how the trading range starts.

Okay, great. Well, Justin, thank you.

All right, let's come back to our homework.

All right, and the next slide here,

we have three trading ranges.

Yeah, let's have a volunteer.

I just feel like I need a little bit of a break. So say yes, Alan, you too.

Hi, Rama.

Hi, Roman.

Yeah. Rama? Is it Rama, right?

R -A -M -A, yeah.

Yeah, okay, great.

Okay, so let's start with the first trading range.

So what catches your eye?

Actually, no, no, no. Let's stop here for a second.

Let's start with the different question.

What is it? Is it an accumulation or a reaccumulation?

It's a reaccumulation, the first... Why is it a reaccumulation?

There is a preceding uptrend.

Yes. So we have a move to the upside, consolidation, trading range, and then

resumption of this trend. So it's a reaccumulation, not accumulation.

Okay, great. So what catches your eye the most in this formation?

It's the...

The buying climax followed by a deep automatic

reaction.

And later, the next is the secondary

test that happens after that.

And that completes the phase A.

Okay. So let's talk about this.

There are quite a few concepts here that we could discuss.

So it seems to me that the bind climax is defined correctly, right? Because

we're seeing some kind of climax.

climactic run with the increased spread, and that definitely defines the

boundary of the trading range.

The alternative labeling to this could be this whole area

being a buying climax trading range.

I would understand that, so that's fine as well.

The conventional probably would be preliminary supply.

buying climax, and then look what happens next.

What does this remind you of, the next price action to the downside?

The next price action to the downside is the, I would consider

that as an automatic reaction.

Of course, yes, and that would be a very conventional label here,

as we know.

In terms of the character with which the price goes down, I mean, look at how it

goes down. First of all, there is not a lot of the distributional pattern here

at the top unless we're considering this whole pattern here.

Right. So look at this spread, increasing spread that goes throughout

closes in this area. That's number one. And then secondly, look at the gap the

next day.

Yeah. And I think the whole price action reminds me of a climactic.

action yes so climactic action and climactic action

usually is going to be associated with two things either climax itself so in

this case selling climax early climax or a shakeout yeah right

so yeah i mean i would say i would say that it's a climactic action

very much in association with selling climax.

Okay, so let's say that this is a selling climax. Then what would the

be after that?

After that, the price is expected to go and test the area where

the resistance is established. That is, they're testing the buying climax,

the area near the buy.

But think about this. We're discussing a selling climax, climactic action, or a

shakeout. So either labeling would be okay here.

What should happen after the selling climax?

Not the test.

If we experienced a selling climax, then we are in the downtrend.

Where is this downtrend? Well, it's this whole move to the downside.

So what happens next?

The next, it goes into the trading range.

Yes.

And from there, there is a rally.

How would you label the first rally of the low of the selling climax?

That would be labeled as an automatic reaction.

Automatic rally in the accumulation.

And then the next reaction would be labeled as?

Secondary test.

Which is testing what?

Testing the area of selling climax.

Okay. So that's exactly what is happening here.

Yeah. Why do we say that this is an automatic rally?

Well, look at the quality of the rally. What does this tell you?

Relative to the downtrend, it's a change of character.

It's the largest reaction to the upside since the buying climax.

So, of course, this is going to be a change of character, and therefore it

be labeled as an automatic rally.

Then look at the next reaction.

How does it look to you?

Diminishing spread, diminishing volume signature, stopping here at the high or

low.

So that looks like a test.

So, therefore, this is a secondary test of the climactic action itself. So,

therefore... Our labeling could be like this.

Shake out, automatic rally, change of character, and then

secondary test. And here is our phase A.

Right. Okay, so what's next that catches your eye?

The next significant is the rally that goes up to

the level of the resistance.

Okay.

And that has a character of essentially upthrust.

Okay. Yeah.

So it's an upthrust action. Action, yes. We know that this is a reaccumulation.

Sure. So we'll label this as an upthrust action.

Which phase is that?

Phase B.

In phase B. Okay, well, okay, we defined that.

What's the next thing that catches your eye?

Let's do this.

Where is our phase C?

The phase C is right towards the area preceding the march.

And phase C, this is the area where

immediately preceding the march. Okay, something like this?

Yeah. Okay, yeah. So we could have kind of like a small argument here, you know,

what phase C is.

I would say I would mark it even closer, you know, somewhere around,

yeah. Okay.

So one of the things that, you know, we've talked about, guys, last time is

looking at different phases and trying to define the Kind of like the

structures within those phases, right? So, for instance, this is one structure.

It belongs to phase A.

This is the test of another structure and has a structure of its own. It's

B. And then it seems to me that all of these reactions here kind of belong to

the next structure.

Right. So, and that's how we want to define phases, right? So, we want to say

that... This is our phase C. And then everything in between is B.

And this is our first test, right? So test number one, test number two.

And then this whole area right here is just more complex. So that becomes our

test number three in there for a potential phase C.

I don't mind labeling it differently, right? So my first labeling was

here. And I think on my slide, that's how it is.

But I would be just paying more attention to the texture of the

each of the phases.

So then what we have here is a buy -in climax, shake -out,

automatic rally, secondary test, phase A.

What is the intention behind phase A, really quick?

A change of character.

Stop in action? Stopping, yeah.

So we're stopping the previous trend.

Then let's say if this is Phase C, what's the intention behind Phase C?

Phase C marks the commencement of the next uptrend. That's not the

intention, though. What is the intention behind Phase C?

Phase C, again, marks the change of character as the price gets out of the

trading. That's not the intention of Phase C. What is the intention behind

C? What does it do?

If this is to stop, if phase A is to stop the previous move, then phase

C is going to be our final test of supply at support

level.

So I want you to remember this by heart.

Okay, so what's the intention behind phase B?

Phase B essentially shows

multiple areas of tests and testing the resistance to the upside and testing the

support to the downside.

Okay. Well, Rama, I want you to come back to schematics, right, because I put

there the intentions for each phases intentionally.

Okay. And I want you to remember those intentions. So phase B intention is to

define the relationship between supply and demand.

Yeah.

And then sometimes I kind of like think about this like a war zone.

You know, it's going to be extremely volatile as a zone by itself.

And then another intention behind phase B is to build a cause.

So those are the intentions behind phase B. Okay, so where is our phase D?

Phase D.

follows the last point of supply,

precedes the last point of supply, and then as the price moves out of the

trading range.

The last point of support, just because we are in the... Sorry, support, sorry,

yeah.

Okay.

Okay, so give me the timestamp for Phase D.

Phase D would be...

just beyond the second line you have drawn to mark the phase C. That's

just after the beginning of the march. And where is the boundary for that phase

D?

Let's say the boundary between D and E.

The boundary between D and E would be where

your pointer is situated.

Right there, SS.

Okay. Yeah.

All right. And what is the intention behind Phase D?

It's the Phase D marks the beginning of

the uptrend as the price exits the trading range.

Okay. So it's a markup? In the trading range, this is a little bit different

structure where we see an apex formation.

So apex formations are going to have different phases.

Okay, great.

Okay, let's go and look at the distribution

range. So what catches your eye there?

It's an upsloping trading range.

That's the first feature that strikes me.

And after that is the buying

climax.

From the price action, I could see... What is the timestamp for a buying

Just after May, between May and June, there is a marked

acceleration of the price.

And it's almost a vertical parabolic rise.

So that's where the buying climax, I mean, it leads up to the buying climax

and followed by a small

pullback, which... Label, label, label everything for me.

Do not describe what you see because we see the chart. We understand what's

happening. I want you to give me, like, short answers on the label, all right?

So if this is the buying climax, then the next point, I want you to label all

these points right here. Okay.

The next point would be the automatic reaction.

Mm -hmm.

Okay. Followed by the secondary test.

Okay. Phase?

A.

Okay.

And then followed by phase B where the price comes and tests.

I could see two small tests.

Okay, we see that too. So another secondary area of the secondary test.

Okay, so where is our phase C?

Phase C is the point you marked last, the phase C, yeah.

Okay, so how would we label phase C here, you know, this attempt to

overcome the previous resistance?

I would label that as an upthrust, yeah.

Uptrust, and because this is distribution, so upthrust after

Okay, we want to check on all of the phases, so phase A.

Phase B and phase C, we want phase B to be the largest, and it seems

like it's almost there. It's almost there.

Okay, so what comes after phase C?

Phase D.

Okay, and specifically with the, you know, I see that the price drops down to

this level right here. How would we label it?

A major sign of weakness.

Okay, followed by?

the last point of supply.

That comes exactly, guys, look at that. It comes exactly to the point of the

resistance which acted before as a support.

Right. So, therefore, you know, this upsloping labeling makes

a lot of sense because all of the concepts have fallen to the upsloping

structure.

Okay, great.

Okay.

Rama, any questions?

Yeah.

I think the intentions, the

point you made about intention is well taken because I think that's something

that I'm working on.

Yeah,

so just...

you know go to the schematics go to those um slides with the schematic in

description and there you can find all of the characteristics for all of the

elements which i think that you're doing fine with i think maybe intentions a

little bit just to freshen up and um and then obviously you know we we want the

label in here right so sometimes i feel like Students go into the description,

and my goal is always to stop them because we could see the chart. Yeah, we

the chart. But what we're interested in is how do you see the labeling? How do

you see the structure?

So, yeah, just brush up on the intentions, and everything else is fine.

Okay. And in the first trading range, one of the things I noticed is that the

of the three lows between March, February and March, the third

one is the higher low.

The second one is, yeah, the second one is kind of on the same level. Okay.

So is it reasonable to mark that as the center, the

phase C around that higher low?

You know, if you label it like this, like you originally labeled it, I'm

fine because phase C in the reaccumulation especially would suggest

have to come in right here on this bar, right here on this bar, and initiate the

position, right? So this is your point entry number one, entry number two.

So from this perspective, from the trading perspective, does it really

how we label it?

Probably no. As long as you could understand that.

This is a part of the potential phase C, therefore the beginning of the

potential upswing.

And, you know, you could definitely define the points of entry here really

So it doesn't, at the end, it wouldn't really matter, you know, whether you're

able to look like this, this, or this.

Okay. Okay, sounds good.

Thank you, Rama.

Thank you. Okay.

And then let's look at the last trading range. This one is a little bit

difficult, so that's why I'm going to go through this myself.

So we are having a downtrend, clearly defined climactic action, clearly

change of character in the next rally.

It's the largest rally of all of the rallies that we've seen on the downside.

So here is our automatic rally.

have multiple tests, one, two, three, and then test number four on the

way down.

So it seems to me that this rally right here has the largest rally of them

all. So this looks like one swing.

There are some things here that... So therefore,

just to conclude the thought, this looks like phase A.

In some instances, we would probably say that this looks like a test of the

climactic action itself as well.

But let's just go with this label, phase A. So then the next test, which is the

second test, happens in phase B.

And then the next test, somewhere in this area, number three, that seems to

phase C.

So I think I would definitely accept this type of labeling with kind of like

one exception, is that it seems that phase A is somewhat larger than phase B.

And in some instances, guys, unfortunately, it's not going to work

this, right? So sometimes the labeling is just going to be a little bit out of

our usual.

rule interpretation.

And hopefully, you could think of the trading

value here rather than, you know, more of the label and style.

In some instances, we could label it like this, and then that would extend

B. But again, for trading purposes, you probably wouldn't care that much.

Actually, to be completely frank with you, I still would be thinking that we

in phase B at this point.

And I would be thinking that we're going to go and experience some kind of phase

C. But it doesn't happen.

So what do you do? Well, if you miss this move to the upside and you are

realizing that this could be a sign of strength, then you're waiting for what?

You're waiting for the backing up action, which should come where?

It should come to the area of the support that acted before as the

phases A and B.

So out of this touch and on the reversal, that's

when you might be thinking, wow, if this shows me that this is a point of entry,

we might have concluded already all of the phases here. And this is phase D.

And therefore, you know, I should go in into this position.

Granted, you're opening the position much higher than, let's say, in phase C,

and that still acts as a reaccumulation range for us.

But sometimes it's going to be hard to define those phases, and there

is nothing wrong about this. It's just a skill building, and sometimes

structures develop in a very... weird way.

So you have to rely on concepts.

And what are the concepts here?

Well, here is one.

Here is this move to the upside that commits significantly to the upside, has

multiple closes up, and then spends so much time above.

What does that sound like?

Well, a sign of strength.

And then a reaction right into the support.

What does that sound like? A backnap action.

If this is true, then this is phase D.

And therefore, everything before that was phase A, B, and C.

Okay, let's have a look at how I label it.

Okay, so I put phase A here at this test.

I'm thinking that still, you know, this is phase A right here.

But let's just leave it as is.

Okay, let's see what kind of questions we have.

Why is the trading range not defined by the lowest point of the automatic

reaction? So we're talking about this trading range right here.

So, well, we could label this as an automatic reaction, secondary

test, and you could definitely have the boundary at this level. Does it come

handy after this?

Not at all. And we're looking at the chart that has already unfolded.

So it's a historical chart, right? So we already know that the price only tests

this area right here and not this one.

And this leads us to the conclusion that this was an extreme oversold condition.

In the extreme oversold condition, price usually does not have a significant

test at the same level.

And the testing out of the extreme oversold condition might happen at the

level. So therefore, what's the use of having this line if the price does not

there? Only when it goes there, you could just incorporate here.

What's more important at secondary test low is being tested again in phase B and

then being tested again in phase C. So that becomes a significant support.

Next question.

Do we care about daily big bull candle?

Okay, Eric, right here, this one.

Are we still on this trading range?

Okay, yes, of course.

We do care about that.

Okay. Eric, I'm confused.

Last look at the trading range at the right. Okay, so which candle are we

talking about?

You have to give me a timestamp. I mean, there are a lot of big candles here.

Okay, while you're thinking about this, 1991.

Okay, right here.

There are multiple big candles here, probably.

Okay, let me just unmute you.

I don't kind of see that. Okay, so which candle are we talking about, Eric?

Okay, Roman, do you hear me? Yes.

Okay, my question is why sign of week instead

of spring?

Or in the phase...

Yeah, this is a mistake right here. Okay, so if we're talking about phase C,

this should be a spring.

Oh, I know what happened. Okay, let me just correct this.

I think this was a slide that I worked on

afterward.

I defined phase C as this one right here. So this becomes a sign of weakness

B, and then this is phase C. So that makes sense. Okay.

Although, you know, I don't like that. I don't like the phase A, phase B

definition here, but phase C could be something like this, and then that would

make it a sign of weakness.

Right?

Eric?

Okay, great. I mute myself, sorry.

Okay, no worries.

Okay, next question.

How would we mark the small reaction right after the buying climax in the

sloping trading range? Okay, so I think that we're talking about the

distributional trading range.

Let's look at that.

how would we label this small reaction?

I don't think that we could label this or we should label this, right? Because,

again, think about the swings in the trading range, right? So we need to

labeling based on the beginning and the end of the swing, right? So here's the

beginning of the swing. This is the reversal.

This is the end of the swing. This is the reversal area.

And that would define an automatic reaction.

Do we have any reversals in this area?

I don't see one.

Do you?

It has to commute below the significant bar to the upside.

So there is no reversal in this area. So therefore, we could just say that this

is a buying climax.

Sometimes I see a labeling like this, buying climax, automatic reaction.

Secondary test.

That doesn't necessarily make sense to me. I would rather label it differently.

I would rather take this whole area right here, and I would go into the

level, and there I would be thinking, okay, buying climax, then automatic

reaction, secondary test, phase B, phase C.

This becomes the distributional structure with a small cause to push the

lower into this low.

So that would make sense to me. But it wouldn't make sense to me at all to

this as an automatic reaction. Why?

Well, because an automatic reaction should contain a change of character. Is

this a change of character?

No. This is in line with the previous reaction that we see. A change of

character has come right here.

So therefore, just based on this, this is going to be our automatic reaction.

All right, next one.

Okay, so that we've answered.

How to read Big Down Spread Candle in early December of 1991.

Probably 1990, right? This one right here. That comes from Nilesh.

Okay.

Well, this is just an ending of the major sign of strength.

And that's it. That's how we would read it. Obviously, we see that this is the

bar that has increased downspread.

So that suggests that the volume signature increased here and therefore

coming in.

And usually, you know, at this point, we're going to see some kind of short

-term overbought condition, which brings mean reversion trade for the

professionals.

So that's where supply is coming from, the increase of the supply.

Okay, next one from Lee.

Is the small rally in the middle of December of 1990

making traders to enter prematurely normally? Is there any

method that could use to avoid that?

Yeah, I think we've talked about this, Lee.

Obviously, this breakout is being used in a lot of methodologies to get into

position, and we see this gap that suggests that we can.

buyers at this point of time.

So I'm not going to name the methodologies, but you guys might know

talking about.

How to avoid this?

Well, you know, if you study Wyckoff structure, you would be thinking of what

should come, let's say, after phase C, a major sign of strength.

But the major sign of strength is going to be followed by what? By a backing up

action. Where would it come to?

It usually would come to the area of the support, which acted before as the

resistance. So therefore, when you have an urge to open this position right

here, and you think that the bias is up, think about the structure.

If you think that we are in phase D, then you should be waiting for the

up action.

Another rule of thumb.

is more to the fact that

you want to open your position

after the reaction, not on the breakout.

There are only two spots on the breakout where we want to open a breakout

position. Number one is right here. This is going to be a sign of strength bar

point of entry.

And number two is on the breakout of the backing up action.

And these two of the entry points, one was defined in the course

by SMI. We've talked about this. And then this one is just WTC

entry that I've originated for you guys. And it makes a lot of sense to me

because... At this level, at this breakout level, there is a lot of supply

is already gone. It's absorbed.

There is nothing left.

Okay, but Lee is actually talking about this situation right here. So we have

a move to the downside, and then how would we think about

the reversal, right? So it's all...

In the technique now, Lee.

So let's say that we know that this is a major sign of strength.

Where should it come to? Should it come to this level?

Should it come maybe to this level? So we're still not necessarily close to

area. But let's say that we're not paying attention to that.

Then what should we be paying attention to?

Well, we need to pay attention to the reversal itself.

Was this a reversal?

Well, it seems like it is a reversal for maybe bars like this right here. It

seems like, yes, we reversed that area right here. But are those significant

bars for us to the downside?

Probably not.

What is the significant bar to the downside? Right here. Have we reversed

with this bar?

No.

We would have to overcome $2 here and close above to reverse it. So therefore,

on this bar, especially the last bar.

Look at that gap, small spread, diminishing spread after this bar.

So that doesn't really act a lot as a confirmation of that reversal.

Plus, this bar right here most likely has a volume increase, which suggests an

increase of the supply. So you don't want to come into this position on that

type of bar.

Okay, we'll talk about the reversal more, especially in practicum.

But there is no reversal here. But there is a reversal right here.

Quite a lot of bars are reversing the last commitment to the downside.

Okay.

All right. Let's go to the next chart.

How are we doing? Four o 'clock. Okay.

Let's talk about sprints.

Originally, Wyckoff did not have a definition of a spring, if you can

this. The definition of the spring was added later on by Bob Evans, who was the

apprentice of Wyckoff.

When Wyckoff passed in 1934, Bob Evans inherited the

Stock Market Institute, and he produced a number of

great material points.

about the methodology.

I think, you know, actually Bob Evans was kind of like a godsend to the

methodology, for the methodology not to die after the 1930s, 40s,

and to continue the studies.

And he added a lot to the material. One of the additions was the definition of

the Supreme. Usually Wyckoff would...

refer to the sprint action as a shakeout or a terminal shakeout.

Bob Evans added the definition of the sprint, but he went even further than

this. He gave the definition, he defined different types of sprints.

So let's look at those definitions.

The first type of sprint is sprint number three.

This is probably the most favorable sprint where there is just an attempt or

temporary price commitment below a trading range support level.

So we kind of could see here how the price commits to the downside, but it's

substantial.

And it happens on a relatively low volume signature. So relative to

that we've seen before since Phase A absorption here in Apple, we see that

is... one of the lowest supply signatures.

And it only temporarily commits the next day, comes back into the trading range.

So this is how spring number three would look like. Spring number three, we

would buy on the return into the trading range. So by itself, a return into the

trading range would be defined as the first point of entry for us.

Spring number two is going to have the same principle behind it, but

it's going to be associated more with weak hands panic, mini panic rather,

where supply signature will increase and therefore the volume signature overall

will increase, but it's not necessarily going to be as high as phase A signature

or maybe phase B shakeout type of reactions.

It also might have

a little bit more profound commitment to the downside with multiple closes to

the downside usually maybe two or um you know a more significant penetration

of the support so we could see both from the price and the

supply signature that it's more substantial but yet the um effect of

the spring is the same the price quickly comes back into the trading range.

And we see that it was just an attempt to commit to the downside and it failed.

So in a way, spring acts as a failed signal.

And I mentioned to you guys before that the failed signal in technical analysis

is one of the best signals.

Why? Well, because a failed signal usually is gonna cause A lot of people,

weak hands, on the wrong side of the trade, what you think they're going to

as the price comes back into the trading range, they're going to try to close

this position, making it a market order to

buy, which will push the price through the trading range into the sign of

strength. And that's what we see here.

And then screen number one is something that, I absolutely

don't like. I don't think it should be in the methodology, but because it is,

you know, it's kind of like a legacy concept, so I kind of have to teach it,

I'm obviously teaching it in my own way, stating that it shouldn't be there.

Sprint number one is basically a failure of a sprint to materialize.

and a price breakdown below a trading level support on substantial volume,

that creates a sign of weakness in the distribution.

So effectively, where sprint number one is a sign of weakness in the

distribution, and therefore, could we even discuss it here? Probably not. And

that's kind of like my thing about sprint number one.

It should not be in the method. It should not be discussed as a sprint. It

should not be discussed as part of the potential accumulation structure.

All right. As usual, this slide is, you know, for your homework.

Print it out. Put it into your library of slides.

Study it. You know, look at the examples.

Try to find sprints somewhere else on other examples.

All right, let's go to the next slide. And this one I'll do

by myself. This is an easy one, right? So we have a climactic run. Again, look

at this reaction and then move to the upside.

The question here, well, could we label this as a bind climax, automatic rally,

secondary test that belongs to this whole formation?

No, we can't. Why?

Well, because this reaction is in line with previous reactions that we've seen

before. So therefore, this is not a change of character.

And if it's not a change of character, then this is probably just a small

distributional pattern that we see that creates the causality to push the price

lower into the lows of a true change of character.

This is the reaction that is nothing like we've seen before on the way up. So

therefore, if this is a change of character, then it's located between

the buying climax and automatic reaction.

And therefore, we could label this area as a buying climax trading range with

the characteristics of the climactic run.

And then...

The first move to the downside, and looking again historically at this

I would say that characteristics of this move to the downside with the

increasing downspread and increasing volume signature suggest

that this is more of the climactic nature. This is more of the shakeout

nature. So I would label this as a shakeout. The first reaction up.

rally.

Then look at the test, decreasing spread, decreasing volume.

So that looks like a secondary test. Therefore, phase A.

And then we're going into phase B and into phase C.

Now, I always ask you guys a question.

What do you see? What catches your eye a lot?

Well,

Couple of things that definitely catch my eye.

The first one is the move to the downside, the last move to the downside.

reminds me a lot of the initial move to the downside because it has some kind of

fear built in. All of the previous reactions, it seems like, yes, the price

down, but maybe not so much as on the first and the last reaction right here.

Also, I'm looking at the character, and I see that even though the distance to

the downside increases, the downspread is actually

decreasing, especially in the second portion of this decline.

So these are the possible characteristics of Phase C. Okay, well,

double -check that this is Phase C?

Well, what comes next after Phase C?

a sign of strength, and a sign of strength should show us the commitment

upside, excuse me, definitionally should go, the sign of strength really

should start at the low phase C, go through this whole trading range, commit

the upside, and then spend some time above this resistance and then back up

exactly into the area of the support which acted before the resistance.

We have all of those elements.

And if you are not sure whether this is a major sign of strength or a

backing up action, then look at the characteristics of the rise to the

Obviously, the largest rally is number one. But look at the volume increase and

specifically demand increase behind this rally.

So that looks very constructive. And then the backing up action just

By the way, that question that Justin had at the top of the hour, at the top

the class.

Could the backing up action only be on the diminution volume signature, or

we have the increase of the volume signature? Well, here it is, an increase

the volume signature, and the price actually goes down. So we can't open

position here until we actually have the test that exhibits

structural high or low.

and exhibits diminishing supply signature right here.

So that would be our confirmation. Plus it comes to the area of the resistance,

so just a really, really perfect blend in there. So here is our labeling here.

C,

A, B, and then...

Phase C would be labeled just because this is not the lowest low.

It's a higher low. We label it as the last point of support.

Okay.

Here's my labeling. You could just go through this labeling at home.

Okay, let's talk about upsloping and downsloping ranges.

So students were asking me, what are the rules as to how you create upsloping,

downsloping ranges?

I kind of explained to you guys how I did this on the previous

slides.

That was my answer to Philip's question, I believe.

So let's look really quickly at the bottom chart.

And this is a downsloping reaccumulation trading range.

So we're seeing the climactic run.

And then look at the downtrend. And look at this rally right here. This rally

acts as a better rally than anything else. So that's a change of character.

At this point of time, you would be thinking we're going to be in the

trading range.

And we actually...

Apologies.

We actually see how the price finds the support on the next low, tries to rally,

but not a lot of good demand.

So it starts to go down again, and this is where supply and demand increase at

the same time.

But we're still deviating around the mean in the same structure. So now the

structure has expanded because of this low. So now we're still in the

We still would be thinking horizontal structure.

But at the same time, we would be maybe thinking we have lower highs,

we have lower lows.

This is the scenario where in this type of trading range, with the lower highs,

lower lows, we might be considering a downsloping structure.

So we would define the lows, one, two, and then have this

downsloping line.

And then we could use significant Weike points to define

next lines that we need to use, right? So for instance, this was a very

important line.

So please note how both the sprain or shakeout in phase C has

been defined by those lines. That's number one. And how the sign of strength

the backing up action have been defined.

have been defined by this line.

Isn't it more effective from trading point of view to take this trading range

trends? There is a substantial distance travel.

If the goal, Philip, is to trade this area right here, then yes,

definitely. You would be thinking that...

This is a definition of the downtrend as lower highs and lower lows unfold.

Unfortunately, in the context of a much larger trend, this is just a

reaccumulation. And we don't necessarily want to trade to the downside in the

reaccumulation. Unless, and just quickly write down, you know, what is your

timeframe, you know, that you trade.

Unless you are a very, very short -term oriented trader. So for instance, you

are maybe like two to three days in a position, maybe a week.

Then you could say, okay, I see that we have, let's say after phase B,

we come to the area of the support on the climactic run, then on the retest

of that, and then it fails.

So here I could initiate the trade.

with the target zone somewhere here.

So then you could trade that.

And probably your first target and first exit is going to be somewhere here, and

then the second target and second exit is going to be somewhere here.

So from that perspective, you could do this.

But we're looking at the overall structure, right? So an overall

dictates that we are actually in the reaccumulation.

And if this is a reaccumulation, we're trying to define what kind of range we

have. Horizontal does not work that well, but downsloping range works

well.

In the downsloping, upsloping range, one of the confirmation that this works is

in the definition of the sign of strength and sign of weakness.

We want to see the overcoming of the resistance in the reaccumulation on the

sign of strength rally.

And then, a backing up action that comes exactly to this area of the support,

which acted before as the resistance.

The same in the upsloping structure.

We would take the low in phase A, connect it either to the low in phase B

phase C, in this case phase C, and then use the parallel lines that we could

project from the automatic reaction and the upthrust action.

And if we see that the rally off the lows in phase C, overcomes those points

of resistance that were created in phases A and B, and the price commits

spends time above that resistance, and then backs down exactly to the area of

the support, then we would be thinking that this is a confirmation of the sign

of strength, which is being shown to us in the backing up action.

So the procedure is the same, right?

We're still going to be looking at change of character, defining

the trading ranges, and then once we start seeing higher highs,

higher lows for the upsloping range, or lower highs, lower lows for the

downsloping range, that's when we'll start projecting different

scenarios here for the structure.

And again, you could read all of this right here and just go through all of

this. It just has more explanation, so something for the homework.

All right, let's go to the next chart.

Okay, so this one is easy too, so let me just go through this.

Kind of reminds me of...

Well, we've seen this, right? So we've seen this. And here, the same, I think

this is the same slide, right?

The same trading range. You could use an upsloping structure, but in this case,

I'm just using conventional horizontal lines.

A downtrend, which leads to the climactic action, well -defined on the

reaction to the downside with the price and the volume increase signature.

So that's very evident.

Right away, we think what comes next, a change of character or the automatic

reaction rally, and then it's being followed by a secondary test.

Please note how in all of these instances, secondary tests at the end of

reaction has this decreasing downspread signature and also

decreasing volume signature or decreasing supply signature.

test the supply level that was at the climactic action, and we could see that

the test, there's really not a lot of supply left.

And then a very common upthrust action in phase B, which is

being followed by laborious decline into phase C. And this laborious decline,

this is something that we like to see going into phase C.

It suggests that Weak hands are selling, but strong hands are already buying.

And that's why it becomes such a laborious move to the upside.

We could see some buying behind the volume signature.

And we're still seeing, you know, maybe like a slight deterioration of the

supply going into potential phase C.

It creates a higher low, which suggests that the downward result is diminished

significantly.

And with that, we're thinking that the bias is going to be to the upside.

I would probably put the boundary for phase C somewhere here.

Why here? Well, because there are multiple tests in phase B that are being

violated in this area. So this is the first time where those tests are

happening. So therefore, with the intention behind... phase c to test to

produce that final test at the point of the support we have seen

that the support in phase b is somewhere here so we're trying to identify the

boundaries as that initial test of that support so therefore your boundary is

going to be there the next rally is very evident it commits above

any of the levels of the resistance so therefore uh it's a major sign of

strength and then we're seeing you know an accumulation range again here we

would be thinking phase c sign of strength uh lps so backing up action at

point um phase a phase b up thrust action so

everything looks to be normal and then

Phase D is going to conclude, of the larger range, is going to be concluded

you know, phase D of the smaller range. So let's have a look.

All right. And what else could we mention here?

Okay, so a question from Ronnie. If A is point number one and phase

C is point number three, What did you find as point number two on slide number

five?

Okay, so A is

test number one,

right? Test number one.

And then phase C is test number three.

Then where is our test number two? Well, all of those tests.

right here in phase b those are number two tests so again think in terms of

the texture right so here is texture number one in phase a

then we have a texture um in phase c which is basically a trading

range of its own we have a selling climax automatic rally secondary test

up thrust action and then its own phase C. So this looks like its own formation.

And then what remains?

Well, it seems like these three spots remain.

And they look the same.

Why? Well, because the reactions to these lows look somewhat the same.

They are in the context of the uptrend, short -term uptrend that we see as well.

and then belong to the same phase.

So this is just a series of multiple tests, a multiple test

number two in phase B.

By the way, guys, think about this.

If you are observing this type of the behavior in phase B, what could

we conclude about the bias of this formation?

Well, it's probably going to be to the upside. Why?

Well, look at how the tests in phase B are happening at the higher lows.

Because it happens at the higher lows, this is a point of strength.

Why is this a point of strength?

Well, think about the institutions here, right? So someone's selling, but then

someone's coming in and still produces some buys.

So institutions are buyers in phase B

at higher lows.

This suggests strength.

And even though phase C actually violates those lows, it just

gives us an indication that whatever institutions bought at this point of

on those lows, they are... they are in the vicinity of those large institutions

that were biased on the way down right here and here. And by the way, if we

would look at the value zone, right? So look at this value zone right here.

It's right in this area where we saw some buying before.

This becomes just an extreme oversold.

And then, again, once the price comes back to the value zone, again, we're

seeing a lot of buying at the same price.

And all of the springs that happen, like this spring right here, below this

value zone, happens really fast, commits to the downside, and then recovers

fast. So all of the elements of institutional buying at the specific

value.

Okay, great.

Let's talk about the sign of strength.

So I've already mentioned it many times today.

Sign of strength, the definition of the sign of strength. And this is something

that I want you to definitely remember.

And a little bit of history as to how this definition comes about.

So I put here pure Romanism, so this means that it comes from me.

The problem with the sign of strength in the methodology was that it was defined

as a sign of strength was defined as a sign of strength bar.

And usually when I would ask a student to define a sign of strength,

they would usually say, well, it's a bar that has an

increasing spread to the upside and increasing volume signature.

And that was kind of like a definition for the sign of strength. Well, first of

all, that's not necessarily a definition of a sign of strength.

It could be even a definition of a sign of strength bar.

It's a characteristic.

We know that the characteristics of the sign of strength bar are going to be

exactly that, increasing upspread and increasing volume signature.

But it's not necessarily a definition for a sign of strength rally.

So let's look at this. A sign of strength bar is going to be this, right?

that is increasing in spread and increasing in the

volume signature.

This bar does not qualify as a sign of strength rally.

A sign of strength rally definition is going to be a rally that travels off the

lows in phase C throughout the whole range that commits above the area of the

resistance that was created by phases A and B. So we see that commitment right

here. That spends time above that area or in this area.

And then that has a backing up action.

that comes exactly to the area of the support that

acted before as the resistance and was created in phases A and B.

And that's the definition of the sign of strength, rally.

So this I definitely want you to remember because I will be asking you

times, what is the definition of the sign of strength?

What is the definition of the upthrust?

And you should remember this by heart.

All right.

What else? So a big difference between a sign of strength and a sign of rally

and a sign of strength bar.

So in all of the cases, what we're looking for is the commitment, right? So

commitment to the upside if this is a sign of strength.

Off the lows in phase C.

through the trading range, commitment to the upside, and then a backing up

action that comes exactly to the area of the support that acted before

as the resistance.

All right, great.

Okay, so this one is interesting. So let's have a volunteer just say yes, and

I'll unmute you.

And especially the first trading range.

I wonder, guys, how you would be looking at that, how you would define that.

Okay, so volunteer.

No volunteers.

All right, Nilesh. Okay, let's go to you.

How are you doing?

Say again your name so that I would pronounce it correctly.

Nilesh. Nilesh. Okay, great.

Okay, so Nilesh, trading range number one, how would we label it? What catches

your eye?

So beginning of September, that seems to me like a ceiling climax.

Price tried to go down.

Price first goes up.

Right. So what is this initial move to the upside then?

That's the automatic reaction.

And then it's kind of combined into a single bar, I would say.

The selling climax as well as the automatic reaction happened kind of on

same day. That's how I think I would interpret that.

Yes, that's totally correct. The same day exhibits both.

Selling climax and automatic rally.

Okay. So then the next reaction and the next low as a high low could be labeled

as? Secondary test.

And that defines?

Phase A.

Phase A. The intention of phase A is?

Stopping action.

Stopping action. Great. What are we stopping?

The downward movement.

Okay. Great. So now that we've stopped that.

Now we could define the resistance and the support.

So we always will start with the horizontal range.

And that's my suggestion to all of you. Sometimes, you know, I hear questions

that, when do we start, you know, putting the down slope and up slope and

resistance and support?

Well, initially...

always, always put the horizontal boundaries first for the range. This is

the majority of the time the price would spend.

And then once you start seeing lower lows or higher highs, that's when you

go in and establish, you know, more of the downsloping.

Okay, so what is next? What catches your eye next in this trading range?

Right. Then in phase B, there are series of secondary tests.

Is phase B the most exciting to you as you look at this chart?

Or are you just going sequentially?

Yeah, I was just going sequentially.

Yeah, so let's just pay attention to the question itself.

What catches your eye and not necessarily what comes next?

The downward movement, right, which happened.

around the phase C test, right?

Around October, right?

Yeah, the downward reaction and then the test that happened around

October. So how do we label this whole thing here?

That would be phase C.

Okay, phase C. And how would we label this price action in phase C?

Spring.

Yeah, it could be a spring.

Obviously, it has all of those characteristics of the spring where

attempt to commit and then the recovery, quick recovery.

My only hesitation here is the volume signature, so such a big increase in the

volume signature.

So this also could suggest that it could be labeled also as a potential

shakeout.

especially if you're using the horizontal range, then somebody might

yeah, I see a lot of volume. I see a lot of, you know, penetration below the

support area.

I think spring is better here at this spot just because we don't see, you

big commitments to the downside in this phase C. All right. So if this is a

spring or a shakeout, then what comes next after, you know, after phase C?

Sign of strength rally.

Okay. Yeah, that's the one. And then we have a backing up action.

Okay, great. And then everything in between C and A is B.

And this attempt to overcome the resistance and commit to the upside with

return into the trading range, we would label as?

Up thrust in phase B.

Up thrust action in phase B.

Okay, great.

So here is our whole labeling.

One of the things here was the horizontal range. If we're thinking that

it, look at the sign of strength, how it comes to the point of the resistance,

and it doesn't overcome it. So if you're using the horizontal range, then

it's going to be really difficult to...

contemplate about this at this spot.

Why is it failing at the point of the resistance?

Is this a sign of weakness by itself?

That failure.

But if you're using a downsloping picture, then a downsloping

range, then you can clearly see that there is a commitment to the upside.

And more importantly, as this commitment develops as a sign of strength rally,

there is a backup.

into the support that acted before as a point of resistance.

So that confirms structurally that indeed this was a sign of strength in

backing up action. And therefore, this is phase C and this is phase D.

And if you missed your entry on this spring, or let's say on the sign of

strength bar, then you could definitely enter somewhere here in this area.

on the smaller back and up action that belongs to this whole range.

All right, great.

Let's go to the second trading range.

And Nilesh, let's start with phase A.

Sure, that would be buying climax where your pointer is.

And the downward reaction would be automatic reaction.

And then we have a second test.

That would be phase A.

Okay.

And then we, in phase, okay, then phase B, again, we are testing the same.

There is one upthrust action in phase B that I see.

And in phase C, Where is phase C?

In August, after August, August 9, I guess, somewhere around that, yeah,

where we are testing the freeze B lows for the last time.

Excellent.

And that's, yeah, I do see an increase in volume

there, but I think the downward spread is lower there, and we do not reach

earlier supports as well. So that's the point.

Still high or low relative to the lows in phase A.

Right. Then we have a sign of strength rally but which

it goes to the buying climax but not really crossing the upthrust

action that we had in phase B until later in October.

Think about the definition of the sign of strength.

We said that a sign of strength should rally off the lows in

phase C, go through the whole range, commit to the upside. So all of this

rallies right here, those are kind of like minor signs of strength, right? So

they're still in the trading range. They have not overcome all of these points

of the resistance that we have in phases A and B.

Therefore, you're looking for the commitment that is above all of the

lines. Where is it? Somewhere here.

You also want to see that the price consolidates, spends time above that

push up, and then comes and backs up exactly to the area of the support that

acted before as the resistance.

Therefore, a sign of strength in the backing up action.

has been shown to us here and therefore they belong to phase d okay great um

i have one question um uh so in this whole structure

right what would be as in where would you think about opening uh position

it be in uh buying backing backing up action only or are there any other

interesting uh

where you see the signs of upward reversal.

Okay,

so in other words, where would we be opening positions, right? Am I correct?

Yes. All right, great, great question. Thank you, Nilesh, and I'm going to mute

you.

Okay, so one of the things here right away, and we'll come back to this

in a second, climactic run is very well defined.

So there is a climactic volume here. A climactic volume does not necessarily

have to come on the last bar.

It has to come on the last rally, though, and be a part of that rally.

But we clearly see that there is a momentum move, there is a vertical

on the way up, and then there is a climactic run, which is being concluded

followed by a change of character.

And I'm looking at the next reaction to the downside, and this looks to me like

a test.

So I'm starting to think that, hmm, could I label it in a slightly different

way? Remember how we said that sometimes we could label a reaccumulation as it

starts up to the backing up action as a shakeout that is being followed just

like a regular.

accumulation labeling, automatic rally, and secondary test.

So I think this is appropriate here.

Bind climax, a shakeout type of action on the increased volume signature, and

doesn't really behave as a pronounced move to the downside. So right here,

on that, where we see that the distance covered by the rally

and then the distance covered by the shakeouts are just so different. The

shakeout is much, much smaller than the distance to the upside.

So therefore,

and with the volume signature, we're thinking, okay, maybe like a temporary

shakeout. If this is a shakeout, then the next thing that we're experiencing

automatic rally, secondary test, phase A.

And we kind of see that the texture of phase A is

congruent with all of these thoughts that I just went through, right? So

it seems like all of these tests belong to each other, these two

reactions. The second reaction is just a test of the first reaction.

So that suggests phase A.

Then we see that in...

Phase C reaction, you know, this is a different texture. This is a different

test. And it looks so different than phase A. It also looks different than

B. Because as we look at phase B, this is the texture.

It's kind of like this laborious move to the downside where there's selling,

selling, selling, selling, selling, selling.

And yet there is no way that the price can commit below.

the lows in phase A.

So that's number one.

Let's come back to the question by Neil Ash that was about the points of entry.

So in my trading, I probably would be thinking that after the upthrust action

phase B, the move to the downside is actually that move into phase C.

So I would be thinking of interpreting this trading range, thinking that this

phase C.

minor sign of strength, maybe major sign of strength right here in the backing

up action. So there's an entry somewhere here.

The exit out of this position could be here or on the failure of the support

right here. So you probably would be ending up with, you know, just a small

Small win, break even, small loss.

And that would be your trade number one.

And again, I'm not shying away out

of this type of opportunities, out of this type of trade.

Because I don't necessarily know 100 % that this is going to be phase C.

I mean, we could go into much deeper analysis and figure out why it wasn't

C.

At the same time, in a lot of cases, we just don't see that until it actually

happens.

Plus, the character of the move to the upside was actually somewhat okay.

So therefore, after this first trade, if we're still thinking that this is

the bias to the upside and we're defining phase C on the next reaction,

Our entry is going to be somewhere here.

That's entry number one. Our second entry out of the reversal of the LPS.

So that's entry number two.

We don't necessarily want to enter somewhere here. Why? Because we don't

the next reaction is going to be such that would take us out and hit

our stop loss. So we would just patiently wait until they're backing up.

after the sign of strength forms, and we would enter somewhere here. So this

would be our third point of entry. So we would be entering here, here, and then

here. And prior to that, we entered here, and we exited here, and here.

All right, let's see some questions.

Could you start back?

in July with buying climax.

Philip, are we discussing the same trading range? It's probably somewhere

right? So could we start back with July with buying climax? Okay, yeah, buying

climax.

So we have a small distribution range that produces the cause

for this low.

This low here is a trading range by itself.

It starts here. So here is selling climax, automatic reaction, secondary

somewhere here, which is hidden, sign of weakness in phase B, upthrust in phase

C,

everything in between is B, and then a move to the downside.

Selling climax, automatic reaction, secondary test, phase A, and so on and

forth.

We didn't go through this structure. We just went into this structure because

that was the assignment. But here it is.

All right, next question.

Big volume on a spring is bullish or bearish indicator or none?

So I'm still thinking that this is the case. Actually, in both cases, the

significantly increases.

Now, we will study this in more detail.

literally like in a couple of sessions but you know it's so

funny how on the same slide we have two different variations the first variation

is kind of like a more normal volume signature where we have an increase in

of the supply in phase a and then we have um a decrease

of the supply into phase b and then a local

increase of the supply from phase B to C, and long -term

decrease of the supply from phase A to C, and

here from B to C.

In the first instance, the volume signature is different. We see that from

A going into phase C, we actually have an increase in the supply signature.

And in both cases, we would be thinking about what? We would be thinking about

the result. What is the result of this whole thing? If the supply increases, do

we produce a significant commitment to the downside? And we see that there are

attempts to commit, but there is no actual commitment below the support

The same here.

There is an attempt to commit, but yet it doesn't. It only springs below the

lows in phase B.

So in both cases, result is very crucial for us to identify, and then volume

acts more as a confirmation of institutional presence at this spot.

And the way how we would be thinking about institutional presence is While

are here, so what is happening on this increased volume signature?

Well, the price tries to go down to the downside and then recovers. Tries to go

down and then recovers. So, therefore, that volume signature suggests

participation of institutions.

And what do they do? They abide at that point.

So, therefore, they abide to the upside.

Good questions today.

I wish I would feel better a little bit.

And maybe we could just like even go into more explanation of this.

Okay.

Is the first trillion range an accumulation?

Well, again, you have to think about the context of everything what

is happening here.

So this acts as a reaccumulation.

This acts as a reaccumulation as well.

The definition of the reaccumulation, move to the upside.

Consolidation, move to the upside.

Consolidation, move to the upside. So both are reaccumulation ranges.

Is August 23rd of 1999 also a sign of strength?

this rally right here. Well, we could kind of think that, yes, there is

definitely like this major sign of strength commitment to the upside.

But I probably would be just thinking that, you know, what kind of value it

gives us.

Probably none.

The fact that the trading range, the second trading range just rests above

the buying climax here suggests

Strength suggests bias to the upside.

But I wouldn't be labeling this whole move as a major sign of strength.

I would probably be thinking more about this area right here as a sign of

strength in the backing up action. But I kind of see the logic of why you would

think so.

All right, great.

So here is my labeling here. You could go through this.

as you do your homework.

Let's talk about shakeouts and sprint -type actions.

So we've discussed sprints, and I mentioned to you guys that Wyckoff

did not have a definition of a sprint. What he had is the definition of a

shakeout or a terminal shakeout.

And a definition of a shakeout is going to be

basically a difference between a shakeout and a spring.

So we said that the spring is either an attempt or a temporary commitment below

the support level.

Shakeout is much more than that.

And I want you just to, on a very simplistic level, to think about the

is it's like a very, very deep spring.

So it's a pronounced price commitment below levels of the support.

Look at how many closes we have below here.

Quite a few.

And distance -wise, it traveled.

So we also would like to see a much better volume signature here, so

more of the increase.

And the reason why the volume signature here is not that significant is just

because it's actually a down -floating range.

And I've used this example in the previous slide. So it acts actually more

spring in the downsloping range than a shakeout. But in the horizontal range,

you definitely are going to recognize this as a shakeout. And this would be a

more conventional way of thinking about this concept and specifically thinking

about this training range formation.

What's kind of like the confirmation or the tactics for the shakeout?

Well, with the shakeout as well as spring number two, our

points of entry are always going to be on the test.

Think about this for a second.

Why do we need the test for spring number two and the shakeout?

Well, because both are going to be associated with the increased supply

signature.

And if supply is increasing, we always want to have some kind of test.

And this test always should come as a high or low and on the diminished supply

signature. That way it would be a successful test.

So where is that test?

Well, it's a little bit hidden right here behind these bars.

And actually supply does come in again and being observed at the same time. So

this acts actually as a very good sign.

And we understand why this happens.

It just happens before the earnings catalyst.

So that's why some volume signature comes, supply comes, there is a lot of

before the earnings, and then, you know, the price jumps.

Okay, let's talk about...

screen type action.

So what is the screen type action? So sometimes I would say, oh, look at this

upthrust action, right? So in the reaccumulation, an attempt to commit to

offsite with the subsequent failure is going to be labeled as an upthrust

action.

So it looks like an upthrust, but in the reaccumulation, We know that we usually

don't use upthrust as a definition, but it's there.

It looks like an upthrust. It acts like an upthrust. It is an upthrust only in

the accumulation, so therefore we will say upthrust action. It acts like an

upthrust.

The same with the spring.

We could see in the distributional structure that in some instances a sign

weakness could be

interpreted as a sprint.

It would have the same characteristics where supply is diminishing going into

the sprint, where the commitment below the support is going to be just

and just so perfect how it just sprints like this and then came back the

next day with the gap up.

So educators like Gary Fuller, David Wise, uh gary dayton they would be

talking about this as a spring and rightfully so it it is a spring it acts

spring but to be more accurate let's just uh define it as a spring type

just because we know what has happened next uh the price went up and then went

down so we're seeing that this is not an accumulation or reaccumulation and that

this is a distribution and once everything unfolded we know that um

this type of action before phase c is going to be a sign of weakness in phase

so and therefore we would just look at this and we would call it a spring

type action which is actually a sign of weakness all right

let's go to the next

By the way, were there any other questions on the web?

No, no, we went through this. Okay, great.

Let's talk about distribution.

Let's talk about events and distinction. So we went through accumulation,

the definition of accumulation.

Actually, guys, let me take, like,

a one -minute break here at this point, and I'll be back in a second. Hold on a

second before we go into this new material.

All right.

I'm back.

So let's talk to our organization about a distribution.

So what is happening in the distribution? How does sentiment change

whole trading range? What do institutional hands and weak hands are

How do they behave?

Well, it's all being, of course, driven by institutional activity.

So we are in the uptrend, and then suddenly we reach some kind of point of

for them.

And in some instances, this value is going to be defined also as an

condition. You're going to have some overthrows in this area in the major

uptrend. And this is where this type of condition creates a

very... bullish uh weak hands sentiment

and with this very bullish um we can

sentiment that produces liquidity

availability which

basically

suggest that institutions could sell into

weak hands' strength.

And in a lot of cases, that selling starts on the way up.

And you could sometimes see how the price goes up, stops, goes up, stops,

up, stops, and then produces a big change of character.

So usually these spots are going to be associated with the tremendous increase

in the supply.

But yet because this is just initial selling, it's not going

to produce a big downward result.

And therefore it's hidden from us like that. And only a trained eye could see

that. And we'll definitely go through that, you know, especially in the second

month when we will be discussing, you know, supply signature, demand

So we'll go through that.

But this is the initial place where institutions are going to unload their

position or close out, you know, some of it, scale out.

And this area right here will be defined as a buying climax.

It doesn't necessarily have to be like a climactic run.

It could be even a trading range. There are so many ways of how buying climax

could unfold.

But buying climax is going to be associated with the first attempts by

institutions to sell their position, to distribute to the strength of weak

hands. And this is where weak hands are going to be extremely excited.

Weekends are going to be correct on the buys and correct on their timing in the

last portion of the uptrend. This is where they're going to enjoy all of the

profits to the upside.

You hear usually a lot of stories from weekends where they're saying, like, I

made so much money.

And that usually happens on the climactic run. Think about 2017.

The last two quarters from summer into the junior year of

2018. That was the market where we had that climactic run.

And this is where we heard a lot of the great stories about how big

money were made on the way up.

Then comes the change of character.

That change of character is going to be very somewhat...

sudden because here institutions are selling as well and

now instead of selling and no downward

result in this case on the change of character they will be selling

and there will be an increase in the downward result for the first time

and that's what is going to define a change of character.

So behavior has changed for the institutions. And not only that, but the

follows now that behavior in the direction of the institutional force.

And that's what produces that change of character. A change of character low is

going to be defined as an automatic reaction.

And that would define the boundary of the trading range.

If anything, this is just such a great concept, I thought, that Wyckoff has

up with.

A trading race.

Future price action is going to be condensed between the

boundaries of the resistance and the support.

This is where the majority of the time the price will be, between these two

lines.

Once we define the boundary of the trading range, the next action for us is

retest, a secondary test. Now, think about this.

At this point of time, at the automatic reaction, there is some kind of short

-term value proposition because the price went down.

As the price goes down, there is some short -term value.

Who's going to take this?

Who is the buyer here?

Well, institutions have been selling into the strength of

weak hands. They've been selling on the change of character as well.

So would they be buyers?

Now, we were taught that you know, institutions might actually be buyers at

spot.

I doubt that strong -hand institutions would be buyers at this spot.

Why would they be?

There is no logic in this whatsoever that they would be buyers here.

Only institutions that are weak hands, that are seeing some kind of value for

them, they could be buyers.

And if it's a reaccumulation zone, then they would, you know, strong

institutional hands would be biased as well.

But I don't see how weak

hands, institutional hands would be biased, I'm sorry, would be, strong

institutional hands would be biased on the change of character law in the

distributional formation.

Their goal and intention at this point is just to scale out, to sell.

So no buying by strong hands. So weak hands are going to be buyers here.

And that's what's going to lead to this next weak rally, which is going to be a

secondary test.

And that would conclude phase A.

The intention behind phase A is the same in distribution as is in the

accumulation.

It's to stop. To stop what? To stop the previous move from going further up. So

we're stopping an uptrend.

And all of the elements, including the preliminary supply, where the first

selling might come, buying climates, automatic reaction, and secondary tasks

going to be a part of phase A.

As weak hands are buying on the way up, imagine what happens to them on the next

reaction.

They're basically saying, this is probably a wrong position for me to be

And it's going to get them out of this position, maybe on the sign of weakness,

maybe on the secondary test just because there was a reaction and they were

expecting more of the move to the upside.

So they would get out of this position and as they get out,

that could produce that sign of weakness that, again, could produce some kind of

short -term value.

The short -term value could finally be picked up by some of the institutions

that are going to be, again, weak hands at this point of time.

And that absorption of the supply at this low is going to push into the next

high. And as weak hands, like public weak hands are not participating in this

rally, they are regretting that they did not participate.

So what do they do? On the next reaction, they are coming in here and

initiating the position.

So weak hands prime.

And at this point, strong hands such as selling, selling, selling, selling.

And they try to sell at the upper boundary of the range.

If they were accumulating the stock, the shares, in the lower boundary during

accumulation, in the distribution, they will always try to be effective with

their selling and to sell at the most optimal price, meaning that that price

going to be, sell price is going to be in the upper part of the trading range.

And, of course, depending on how the market reacts to that selling. So if the

market still wants the shares, that selling in the upper part of the trading

range is very easy for institutions.

But if the weak hands are less willing to buy the

stock, then most likely it's going to be much harder for institutions to

sell. in the upper part of the trading range. And they would have to push the

price lower. So sometimes weaker structures are going to have structures

deteriorating structures with the lower highs and lower lows.

It's just institutions can't really sell everything right away. So they sell and

then they allow the price to go up. Then they sell.

The price goes below the low, creates a low, low. So they know that, you know,

whatever supply they provided them to the market, it tanks the market. So they

need to be careful as to how they sell.

So next time the rally goes up, they're trying to sell maybe less. And then on

the way out, they just get through it, their position, and just sell

And that produces the gaps.

On the way out, you know, a big spread.

Well, if the weekends...

got into this position again.

So this is the second time when they bought.

And they're really enjoying the upthrust because upthrust is going to have a lot

of characteristics of a sign of strength.

This is where the spread might be increasing to the upside.

There might be increasing volume as the rally unfolds. And then as the price

commits to the new level, this is the...

becomes the second point of excitement for weak hands.

What is the first point of excitement?

Well, we said that it was a climactic wrap.

These are the two spots where weak hands are going to be excited about their

position, so therefore they're going to provide more liquidity to strong hands,

institutional hands.

to sell into.

So we often see that in this area, we're going to see either one bar or several

bars with the increased volume signature that suggests the presence of supply.

And as it fails, this is the first time where weekends are going to say, I'm not

selling.

Why? Why are they not selling at this point?

Well, because...

Finally, they realize that they have to be disciplined.

But unfortunately, they get disciplined at the wrong time.

And this whole weak hands, strong hands, you know, weak hands usually defined

not just by the incorrect bias.

Their actions are defined by incorrect timing as well.

And that's kind of like the case here. So they want to be disciplined and they

say, every time I entered this position, the price went down

and then the price went up.

So now that the price goes down, I'm not going to sell this position because I

know that the price will go up again and it will rebound.

And it would rebound in the reaccumulation.

And unfortunately, if it happens to them in the reaccumulation, imagine the

emotional confirmation that they get from that rebound.

The rebound is basically just saying, yeah, you should be doing this all the

time. And that's how they would be functioning.

So at this point of time, they do not give up on their position, whereas

institutions are selling into that strength.

There is really not a lot of...

strength just because not a lot of bias on the last point of supply rally.

And the stock or the shares are in weak hands.

Therefore, this rally is going to be mostly flat or it's just going to

some kind of momentum to the upside and then it's just going to come down and

then tank.

Imagine what we can do next.

As they hold on to their position and the price goes and breaks below the

support, what do you think is going to happen here?

Well, at this point of time, there is too much of the emotional pain.

that weak hands are going to have. And by the way, again, weak hands, not just

public, institutions plus public

and institutions

on the wrong side of the trade.

And when they see that the price goes down, they just basically emotionally

capitulate and they say, get me out at any price that's what produces this big

move to the downside usually once the price comes out of the distributional

formation we could see a lot of gaps to the downside that are significant gaps

we could see big spread increase to the downside that are going to be extremely

big and extremely significant spreads to the downside and that's where we

know that

There is a capitulation that is happening on the way down.

All right.

As in the accumulation, we would be using

Y -cap events to define phases.

We've talked about phase A and all of the events there. And it's kind of like

mirror image of the accumulation.

So we have a preliminary supply instead of preliminary support, buying climax

instead of selling climax, automatic reaction instead of automatic rally, and

then secondary test is going to be the same.

Then the labeling changes.

We still would be thinking phase B as the test of the support and the

resistance.

test that the support is a low low then we're going to label it a secondary test

as a sign of weakness in phase b high low is going to be just a secondary test

and then excuse me a lower high

in phase b is going to be labeled as an attempt to up thrust

and um A higher high is

going to be an upthrust.

So these are the label and definitions in phase B.

And then phase C is going to be our final test

of the demand, right? So in accumulation, final test of the supply.

Here, a final test of the demand in the distribution.

And it's also going to have either a higher high, which will be labeled as an

upthrust after distribution.

Why after distribution?

Because if this is a distribution, the thought here in the methodology was that

distribution has already happened by that time. By the time the upthrust

in phase B, distribution is done.

This is, again, not necessarily correct.

And the method requires a lot of corrections and adjustments, and this is

I'm... kind of trying to do with this course. It's just to put everything on

the correct path.

So, distribution

still

could be happening.

on the way down, even in phase D. There might be some selling on the way down.

Distribution could happen even on the way down in phase E.

Institutions can still be in the mode of selling.

So, to me, this is definitionally not necessarily the best semantic after

distribution.

I would say that maybe this is a distributional upthrust.

That's what I would... probably say like DUT, something like that.

Up for us after distribution could be also be tied with tests or multiple

tests that come and, you know, test that attempt to go up.

And then a lower high in phase C will be labeled as a last point of supply.

And then we are experiencing a change of character.

The next reaction is going to be the largest reaction in the trading range,

which defines that the behavior has changed, and therefore a change of

is underway.

The change of character is going to be confirmed by the last point of supply

rally, which usually is going to be a week.

After this rally, this is where the capitulation is going to happen as the

commits to the downside.

Intentions behind phases in distribution are the same as in the accumulation.

Phase A, as I mentioned, is a stopping action of the uptrend. Phase B is a

cost building, and this phase defines the relationship between supply and

demand. Phase C is the final test of the demand at the resistance level.

Phase D is the initial markdown within the trading range, whereas phase E is

going to be the markdown outside of the trading range.

As usual, I'm giving you the definitions and the characteristics of all of these

Wyckoff events in the distribution range.

This is something that I want you to print out.

to have to have it in your library uh and to study as a homework assignment

and obviously to remember those characteristics and remember this

usually when we don't remember the sequence you know of all of the labeling

events that are happening this is where we are starting to make mistakes

and this is where I see how the students may be not understanding the material.

So please make sure that you go through this slide and study and remember

characteristics by heart.

Okay, let's look at some variations of the distributional patterns.

So a conventional distributional trading range would look something like

this. where we see a horizontal structure and we could have maybe some

higher high into phase C, maybe a lower high, you know, where we would have like

a last point of supply type of situation.

But predominantly, the price would be consolidating within the boundaries of

support and the resistance that were created by the bionic climax and

reaction in phase A.

A more alternative schematics and labeling

could include a leadership, a distribution of

the leadership stock or a leadership instrument. It's usually going to be

associated with a very

unwilling change in sentiment by market participants in this structure.

It has been a leader on the way up, and it still could act as a leadership. And

the 2018 market in the US is a prime example of that,

where we did have a change of character, and yet we had an upthrust

into the climactic high. It more reminds us of the...

of this schematic right here which also defines a distribution of the leadership

stock where buying climax is being followed by a shakeout type of

action then we have a reaccumulation type of structure that leads us to the

thrust formation and then we have a downturn now in this market what's

kind of like very very interesting about this market is that As it went down,

it recovered really fast.

So therefore, what are we thinking here with this recovery?

Why did it recover so fast?

Well, it only could recover under one condition, where in the oversold

condition, we have some kind of value for institutions.

If there is some value for the institutions, what does it mean for the

Well, the long -term buyers, as they see it, is still up.

So therefore, I'm thinking that this whole formation that we're in right now,

probably just a long -term reaccumulation.

And probably this rally will conclude with some kind of reaction and then a

consolidation that's going to lead to potentially next move to the upside.

This type of scenario could only be negated when we would see maybe a

that's going to bring us to the lows, and then the subsequent rallies are

to be so weak that we're just going to collapse after those. So it's going to

be interesting to look at the next reaction because next reaction is going

define a lot of the structure that's going to come next.

But this is something that if you want to hear more on.

you could join us for our Wednesday class, Wyckoff Market Discussion.

So two types of leadership distributional patterns.

And then we go into something very, very unique.

Both of these patterns, so number three and number five,

are... of the same family, and they are called tipi

formations or tipi family.

So what is tipi by itself?

Well, it was taken from the Indian hut look.

This is how it looks. So there is a move up, and then there is a quick move

down, speculation on the way up, and then urgent selling on the way down.

Why is it so? Well, because there is just like not even extreme, double

extreme overbought condition on the way up.

Basically a pure speculation.

And you've seen this in the Bitcoin just recently.

You've seen this in the Chinese market in 2015.

so many other examples that we could observe.

In this hypodermic formation, and this is the biggest difference between, let's

say, hypodermic formation than anything else that we see here on this slide,

the phases are going to collapse.

And the duration of the phases is

going to shorten.

So therefore,

our phase B is going to be short, and it's going to be in line

as phase A and phase C.

Usually, we would like to see phase B as one of the biggest phases, right?

Look at all of the schematics. Phase B is quite substantial.

But in the case of the hypodermic distribution, this is where...

There's going to be collapse in duration for phases. Why does this happen?

Well, because of the extreme value that institutions

are getting and extreme profitability that they have.

They don't want to wait and distribute the stock throughout the horizontal

formation and take time to do that. They basically say, get me out

now.

And I don't care at what price.

So they're going to sell, sell, sell on the way down. And they're just going to

take the profits, you know, whatever profits they can. And that profit, even

the way down, is going to be substantial.

We'll study more of these examples, you know, later on and in the practicum as

well. Another TP family member is...

the last chart, the last schematic right here.

And it's going to have the same type of institutional behavioral

characteristics as the hypodermic distribution.

There's going to be some speculation on the way up, but then what's more even

important is that throughout the initial phase A and early phase

B, we're going to see urgent distribution.

by institutions.

And usually this urgent distribution will conclude

initial selling by institutions.

And because of that, the price is going to go into some kind of apex formation.

And in this apex formation, this is what's going to happen.

Weak hands are going to find some value and they're going to be buyers.

But because they're weak hands, their bind is not going to be very intense.

And it will never produce the rally that's going to come to the levels of

bind climax.

And this is one of the attributes of this CP Apex formation.

And institutions, you know, the strong hands, they're already sold.

They don't need to sell anymore.

They are just basically inactive.

So institutions are inactive throughout

this whole apex formation.

If institutions are inactive, then all of the reactions to the downside, just

because they are biased already to the downside, are going to be mediocre as

well. And that's what creates the apex.

Weak hands are buying at the value zone, and then they're just holding on to the

position. And then strong hands are just basically already sold out, and they

don't want to sell anymore.

So there is an inactivity by institutions, and that produces this

formation. It is being resolved on the way out. And ironically,

this on the way out is also going to be led by institutions.

they're going to see that throughout, let's say, a couple of quarters, there

no absolute or

relative outperformance.

And this will lead for the final capitulation.

And they were going to give up on this position. As they're giving up, the

supply is going to increase at this spot, and also the price will start

to the downside.

This movement to the downside will change the sentiment of weak hands, and

they're going to start selling as well.

And that's why apex formations produce such quick moves on high volume

signatures, because if there is a capitulation out of the apex formation,

everyone participates in that, and they're going to just capitulate on the

down.

getting out of the position, and it just collapses the stock, collapses the

price.

All right, so definitely something that I want you to think about, that I want

you to go through, and especially this slide right here

with all

of the Wyckoff events.

all of the phases, intentions behind those, and so on and so forth.

Okay, so I think that we're going to stop. Okay, so a couple of other things.

So chit -chat on the distribution, phases A and B. This is, again,

that you need to print out and just keep in front of you, keep it in your

library.

Go through all of these points. This is just another way for me to give you this

information.

I believe, you know, as a teacher, that if I give you the same information in

different ways, one of the ways are going to resonate more. So this is just

another way of thinking about this concept. So just go through this by

Phase C, D, and E.

And then your homework for next time. Your homework is still going

to be on labeling.

We're going to label.

Microsoft.

And it's the same assignment. I want you to label the trading ranges with WICA

phases, events, and change of character.

So let's quickly look at this. And you could notice that I don't have the

signature on all of these slides.

It's very intentional.

I want your mind to think only about labeling at this point.

So 1, 2, 3, 4, 5, 6.

Seven, eight, nine.

Yes, okay, great.

So nine charts.

Okay, so this is the homework.

And then next class, what we're going to do is we're going to look at your

distribution homework for today.

And we're going to go through that, and we still have some of the material that

we need to cover.

But this is going to be, you know, our last final class on

price structural analysis, and then we're going to transition it to the

and demand.

So Eric is saying here, too much, Ramon. Okay. Well, yeah, if you guys are

feeling like for those of you, you know, for those of you who feel like, oh,

it's a little bit too much.

Go at your own pace.

Sometimes when I receive emails like, this is a very intense course.

Yes, it is.

But there is no other way that I know how to teach this material.

And there is no other way that I would want to teach this material.

It's just me. It's just kind of like a style, a teaching style.

So therefore, take your time and go at your own pace. If you feel like you

go through the whole homework,

make it a point just to label at least one chart.

Maybe two. Maybe you can do three. Or maybe you'll find the time and label all

nine. And obviously, it comes with the practice. So the more you practice, the

faster you're going to see those concepts on the chart, the faster you're

to label those and so on and so forth.

So that's kind of like the key. To study, but to study at your own pace and

don't over...

Don't overdo something like this where, you know, I understand that this is not

your job. This is more of a secondary income that you want to create. You

maybe it's kind of like a hobby for somebody, so therefore just pace

All right, let's see some of the comments.

What does it cost to be a part of your Wednesday market update class?

We'll definitely go to our website.

Let me just see if I could quickly...

If

I could quickly show you this.

So under classes, go to a wake -up market discussion.

The cost of this class is $99 per month.

This is a monthly recurring payment, so you can cancel it at any point

via PayPal or just email us.

And this is an hour and a half on the market on the last bar.

So, yeah, you're welcome to join us.

Another question.

Ramon, for me the confusion is the difference of sign of weakness or spring

to reaccumulation.

Can have a spring and distribution have sign of weakness so that it's so

similar? Okay, let me rephrase this question so I think I understand it. So

difference between a spring

in the reaccumulation

and a sign of weakness in the distribution.

I'm going to assume that a major sign of weakness in the distribution.

So what's the difference, right? Because they're going to look the same or

somewhat the same.

Well,

there are quite a few things that are going to happen before, right? Even in

phase A, as we've studied, there might be some very average volume signature

that's going to indicate to you that this is a reaccumulation.

Maybe there is a subsequent supply dryout and maybe just slight increase,

increase of the volume signature on the actual spring.

Whereas in the distribution, we might have phase A that's going to be

with a big supply increase and then

increase of the supply signature on the way down.

So that could look different. But even if we have not noticed this, then we

always would be thinking about the confirmation of those patterns, the

confirmation of a spring.

A confirmation of a sign of weakness. So what would be a confirmation of a

spring? The price comes back into the trading range and goes into a major sign

of strength.

And then with the major sign of weakness, there's going to be an attempt

back.

The price could come back, but then it still needs to react into the resistance

and then collapse.

So those are going to be two different pictures that you're going to see as a

confirmation. So I would concentrate on that first because it's an easy

identification. And then try to define the bias throughout the whole structure

as you go through phases A and B, which is a much, much harder task.

All right.

Is there...

a redistribution trading range set up similar to reaccumulation, or will it

proceed by buying climax during overall downtrend?

There are quite a few similarities that we could have between a reaccumulation

and a distribution.

And usually, as we say, like the first one -third of the trading range.

is going to look the same. Now, this statement is correct and erroneous at

same time because, yes, in some instances, the trading ranges are going

know, with different bias, with the reaccumulation and the distribution

indeed, they're going to start the same way. And actually, I have an exercise

for you for the second month where we're going to look at something like that.

And yet, the resolution of the trading ranges are going to be different.

So we'll talk about that difference more.

But on a very kind of like simplistic level,

yes, you're going to see distributional patterns that

are going to look a lot like an accumulation or reaccumulation rather.

I've started session number one with the examples of the trades that I made.

Go back to that session and rewatch a trade in Novodea.

I've mentioned to you that throughout the whole trading range, this was one of

the leadership stocks that was on my watch list still as a reaccumulation.

And I don't see anything wrong with that definition.

Yes, we know that Novodea went down.

And it would be dishonest for me to tell you that I was

thinking of the distribution all the way through the trading range. That's just

not how I function.

I was thinking about the reaccumulation, so I'm going to tell you this.

And then some elements that came later on after the upthrust.

That suggested the change of character and defined the bias to the downside.

And that's when I figured out that now it's going to be distributed.

And it's going to be distributed relatively fast.

So we're looking for those type of definitions.

Whenever you're asking me a question like that, you're looking for a linear

solution to a complex multivariable type of problem. problem.

And you can't solve this problem in a linear way.

Or you can solve it in a linear way, but you have to have the capacity to

connect so many different variables, so many data points, and you just can't. As

a human, you can't. I think that, you know, if you're using maybe like

supercomputers, you probably can, but you still have to define the rules for

supercomputer, unless you define the artificial intelligence rules and then

system learns how to identify it.

But for now, the key is concentrate on the concepts and then be fluid,

be dynamic in your analysis.

Don't be linear. Don't be thinking that, oh, it has to be all rule -based.

Yes, it has to be. But in a lot of cases, it has to be conceptually based,

concept -based, right? So concept comes, As a change of character, bias changes,

and therefore a good trade is being produced.

Okay.

What else?

Okay, so I'm just going to conclude here with one last remark, and that's it.

I'm going to go and rest.

This comes from Rick, and he says, no other way I would want to learn. This is

my life to trade. This is my job.

And I love this because I'm the same way.

You guys could definitely feel this, you know, with each session that, you know,

I've developed quite a passion for trading, for markets, for this material,

way how the logic works.

with all of those details and so on and so forth.

And I definitely know that there are quite a few people in this class

who have the same passion, the same kind of like dedication, commitment to this

material, which is great.

But I also do not want to oversee other students who maybe do not have the same

amount of time and the same type of...

Commitment just because of how the life is, right? There are other things, more

important things than this event. There are families, there are jobs, there are

other things that you, you know, responsible for. So totally get this. Do

stress about that at all.

And go at your own pace.

The key is just to stay in the system.

to stay in this educational system and try to get the most value out of this

education. So therefore, come to the class, be present, be conscious when

you are in this class.

This is one thing that when you come to this class and you're tired and your

time is limited, do yourself a favor.

Stay conscious for this two and a half hours and stay present because...

You're going to gain a lot of knowledge and you're going to gain a lot of

material from this.

But if you're not paying attention, then it's kind of like you're there, but

you're not there.

And then if you can't re -watch the video again, that's fine. If you can't

the homework fully, that's fine as well.

Maybe in the future you could re -listen to the course, re -watch the course,

and do those homeworks.

I've been teaching for quite some time, and at the beginning of my teaching

career, I was so strict with students.

And then it took me a time to understand that people have

their own lives, and there are some things that are much more important than

this. So define your commitment and involvement in this course by yourself.

me know how you're doing this, and I support you all the way.

with whatever path you choose.

With this, guys, I'm going to say good night.

I'm going to try to post this recording tonight, and then I'll see you all next

week on Monday. Send me your homework.

Thank you, guys, and I'll talk to you later.

Cameron, thank you so much.

Bye -bye.