1
00:00:00,240 --> 00:00:01,920
Very long -term structures.

2
00:00:02,560 --> 00:00:06,680
What happens when we observe structures
that have taken a long time to develop?

3
00:00:07,340 --> 00:00:09,360
Those ranging from months to years.

4
00:00:09,760 --> 00:00:13,320
Are there traders who are building
positions across all that time?

5
00:00:13,760 --> 00:00:17,000
Well, this is the fundamental principle
of the Wyckoff method.

6
00:00:17,280 --> 00:00:20,500
So, from a theoretical point of view,
the answer would be yes.

7
00:00:20,920 --> 00:00:25,000
But we already know it's action, not
theory, that generates a profit.

8
00:00:25,420 --> 00:00:29,120
It is time then to draw an operational
conclusion from this idea.

9
00:00:29,900 --> 00:00:33,880
My point of view is that the idea that
there are traders who could be building

10
00:00:33,880 --> 00:00:38,260
their position for months or years seems
unlikely, although anything is possible

11
00:00:38,260 --> 00:00:39,260
in the market.

12
00:00:39,340 --> 00:00:44,540
If we think logically, in really liquid
markets, these large traders shouldn't

13
00:00:44,540 --> 00:00:47,320
find too many problems in meeting their
liquidity requirements.

14
00:00:48,380 --> 00:00:52,060
Assets for which the participation is
low might be a different matter.

15
00:00:52,440 --> 00:00:56,000
This is where an inexplicable aspect of
the methodology emerges.

16
00:00:56,680 --> 00:01:01,480
Even applying logic, we may continue to
see very long -term structures that meet

17
00:01:01,480 --> 00:01:06,020
all the analytical characteristics of
price and volume, as in the following

18
00:01:06,020 --> 00:01:07,980
-US dollar monthly futures chart.

19
00:01:08,660 --> 00:01:12,480
Is it really possible that highly
skilled traders might have been

20
00:01:12,480 --> 00:01:16,000
distribution structure from 2008 to 2015
or so?

21
00:01:16,340 --> 00:01:21,260
It's almost unfathomable. But the
distribution structure is there, and it

22
00:01:21,260 --> 00:01:23,740
to be following the roadmap proposed by
the methodology.

23
00:01:24,540 --> 00:01:27,690
Astounding. Let each person draw their
own conclusions.

24
00:01:28,310 --> 00:01:32,130
I think a more logical point of view is
that the market went through different

25
00:01:32,130 --> 00:01:35,970
phases of control throughout the
development of its structure, as we

26
00:01:35,970 --> 00:01:40,090
when talking about the context of the
dynamic nature of the markets,

27
00:01:40,090 --> 00:01:44,530
when said structure encompasses such a
long period of time, a period of time

28
00:01:44,530 --> 00:01:48,470
during which the fundamental conditions
of the particular asset were probably

29
00:01:48,470 --> 00:01:49,470
changing.

30
00:01:49,850 --> 00:01:54,550
Looking at this example, we can propose
the hypothesis that the macroeconomic

31
00:01:54,550 --> 00:01:58,670
conditions of the currencies have been
skewed with policies that favored the

32
00:01:58,670 --> 00:02:02,070
weakening of the euro and or the
strengthening of the US dollar.

33
00:02:02,810 --> 00:02:07,150
Conditions that have developed as a
result of economic policies implemented

34
00:02:07,150 --> 00:02:11,510
precise moments where again, at an
aggregate level, these have allowed the

35
00:02:11,510 --> 00:02:13,670
development of said behavior in the
market.

36
00:02:14,130 --> 00:02:18,170
Here we see another example, this time a
weekly chart for Bitcoin.

37
00:02:18,710 --> 00:02:23,460
As we see, During what appears to be a
distribution structure given the effect

38
00:02:23,460 --> 00:02:27,960
it is currently having, multiple smaller
structures can be observed within it

39
00:02:27,960 --> 00:02:29,660
which have their corresponding effects.

40
00:02:30,160 --> 00:02:32,380
A much more logical approach to be sure.

41
00:02:32,640 --> 00:02:35,120
Has someone been selling through the
entire range?

42
00:02:35,360 --> 00:02:40,000
Perhaps. But it seems more sensible to
me to think that the participants have

43
00:02:40,000 --> 00:02:43,440
entered and exited the market in
accordance with the changes that were

44
00:02:43,440 --> 00:02:44,780
place in the Bitcoin ecosystem.

45
00:02:45,600 --> 00:02:49,540
and that all their interaction at the
aggregate level has definitively shaped

46
00:02:49,540 --> 00:02:50,418
the structure.

47
00:02:50,420 --> 00:02:55,580
So, if at an aggregate level it is
considered unlikely that accumulation or

48
00:02:55,580 --> 00:02:59,140
distribution campaigns are being built,
why analyze these structures?

49
00:02:59,380 --> 00:03:00,620
Why take them into account?

50
00:03:01,140 --> 00:03:04,880
This is when we have to give the issue
some meaning from a trading point of

51
00:03:04,880 --> 00:03:09,180
view. The structures, however long -term
they may be, identify potential

52
00:03:09,180 --> 00:03:11,940
liquidity areas which can be found at
the extremes.

53
00:03:12,700 --> 00:03:16,900
It is in those trading zones where we
want to enter or exit the market or

54
00:03:16,900 --> 00:03:17,819
our trades.

55
00:03:17,820 --> 00:03:20,480
They also help us to establish the
market bias.

56
00:03:20,720 --> 00:03:24,720
If we are below a structure, we will
assume that what we see above is the

57
00:03:24,720 --> 00:03:29,100
distribution, and if we are above the
structure, we will assume that control

58
00:03:29,100 --> 00:03:32,200
on the long side and we will look to
take up buying positions.

59
00:03:32,720 --> 00:03:36,940
But in addition, they also help us to
identify areas where the price is likely

60
00:03:36,940 --> 00:03:41,400
to go again in the future, thus
establishing very interesting profit

61
00:03:41,400 --> 00:03:42,400
zones.