Original subtitles

Although Richard Wyckoff did not use these terms in his studies, equilibrium

disequilibrium are still the reasoning behind sideways and trend movements.

An accumulation and distribution range, terms that Wyckoff did use, are

precisely equilibrium zones where buyers and sellers exchange their contracts as

a sign of market efficiency, a term used in auction theory.

The same is true of bullish and bearish trends, which essentially represent

inefficiency and imbalance.

Ultimately, The underlying logic of the principles of the Wyckoff method is

based on exactly this, on auction theory, on the acceptance and rejection

certain areas.

And this is what I try to convey to anyone who suggests that this approach

outdated and totally inappropriate for today's markets.

We also have the principle that the market, in order to facilitate trading

between its participants, will always seek to return to previous areas of high

activity, where both buyers and sellers exchanged a large number of contracts.

The principle is extremely useful for more accurate analysis and for locating

logical profit -taking zones.

One of the key concepts is the change in the perception of value.

When traders at the aggregate level converge in their valuations, sideways

ranges develop.

And it is only when an event occurs that causes these valuations to change that

the imbalances occur that cause the perception of value to migrate.

And if we look closely, in the end, All accumulative and distributive structures

implicitly carry this change in value perception and, to a greater or lesser

extent, the P and B turning patterns will always be visualized.

A bullish reversal with the pattern BP is implicitly an accumulation whose

change in value perception may lead to higher prices.

The B can be identified with the first part of the development of the structure

and the P with the second part.

the shock being the one that creates the base of the P and gives rise to the out

-of -range imbalance.

On the other hand, a bearish turn with a PB pattern is nothing more than a

distribution that will have a longer or shorter duration, which has been

confirmed by the value generation in the P and the value migration in the B, so

it is highly probable that lower prices will follow.