The S&P Chronicles - An Amalagnation of Wyckoff, VSA and Price Action

Jul 14, 2008
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#33
ES 19th July 17

Wyckoff and VSA principles at play into today's action:

Shakeout
VSA no supply/testing setup
Spring
Weak pullback in established trend setup
Effort vs. Result

PDF attached (3 pages)
 

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Jul 14, 2008
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#34
ES 20th July 17

Wyckoff and VSA principles at play in today's action:

Classic Wyckoff setup (rally back to Ice)
Upthrust (excellent background conditions, no demand in a previous area of supply)

PDF attached (3 pages)
 

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Jul 14, 2008
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#35
ES 21st July 17

Wyckoff and VSA principles at play in today's action:

Effort vs. Result (Wyckoff governing principle, excellent example)
Upthrust setup
VSA testing (no supply setup)
Classic Wyckoff (BUEC setup)

and a price action aberration (hidden buying)

PDF attached (3 pages)
 

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Jul 14, 2008
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#36
ES 25th July 17

Wyckoff and VSA principles at play in today's action:

Upthrust (setup)
Testing upthrust (setup) combines Wave volume (decreasing demand setup)
Spring - to trade or not to trade?
Mini climatic bar
Presence of supply
Demand/buying zone

PDF attached (3 pages)
 

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Dec 6, 2012
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#37
Thank you so much for your daily commentary.

I briefly read Wyckoff material long time ago, but never really tried to implement on intraday. Your approach and the way you put the picture together to build the case is invaluable and definitely gave insights into trading and showed me the importance of looking at volume bars in relation to price bars in a totally different perspective. Cant thank you enough.
 
Dec 6, 2012
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#38
Hello,

Do you trade any other instruments intraday? the reason i'm asking is to get some tips on CL and ZB if you trade.

Like for ZB as the vol is low, what kind of time frames one can use (minute and tick charts)
likewise for CL the volatility is so his what time frames gives us a good read using Wyckoff vol price analysis.

Thank you very much for your time.
 
Jul 14, 2008
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#39
ES 26th July 17

Wyckoff and VSA principles at play in today's action:

Classic No demand setup
Upthrust setup
Upside shakeout
Trend Channels

and combining both the 5 minute and tick chart for a setup

PDF attached (3 pages)
 

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Jul 14, 2008
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#40
ES 27th July 17

Wyckoff and VSA principles at play in today's action:

Shortening of the Thrust (critical Wyckoff element)
New momentum low (setup)
Waves
No demand setup
Change of behaviour

A great edition of the Chronicles show casing various Wyckoff principles in a text book manner

PDF attached (3 pages)
 

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Dec 6, 2012
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#41
@Peacefull Warrior

Hello,

Question regarding Shakeout and Absorption

Last Friday i noticed what i think is a shakeout bar at 11:10 and went long on the pull back at 11:45 and then the market was up slightly and then kind of flattened out and i came out 2:40. Only after it pierced the top of the channel i figured out it might be an absorption. It dipped inside the channel (absorption ?) and goes for another 3 points.

If time permits, if can you talk about the following i would appreciate.
Are the bars in side the channel tight enough to be called an absorption ?
if absorption, do we have to anticipate absorption's following shakeout ?
what are classical signs of absorption ?

Thanks for very much your insights.
 

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Jul 14, 2008
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#42
Great questions:

In Wyckoff we have a ''terminal shakeout'' that occurs at the end of accumulation, a trading range or into a support area. Or we have an ''ordinary shakeout'' that occurs in an uptrend. BOTH achieving the same result.

In my trading its the ordinary shakeouts that get all the attention, due to the fact that we can on occasion profit from them with a setup. An ordinary shakeout in an uptrend will get rid of weak holders, usually (but not always) the next 2 to 3 proceeding bars will eradicate all the selling and start trading above continuing with the uptrend. We get instant confirmation that it was an ordinary shakeout, this means the market has more to give to the upside, we look for reasons to apply bullish setups or trade the shakeout itself

Terminal shakeouts are a little more complex and will often need testing due to it's nature

In regards to the bar in question, its more of a spring as we dip under the previous swing low and reverse to close firm - importantly at 2461.50 is a major daily support level (we would expect demand to emerge)

The bar has shakeout characteristics, the spread itself is not that overt - as we have a few wide spread bars to the left (fairly close). The labels/names of a bar aren't important, its the action; how much does a bar in question accomplish?

The pullback you entered was testing the spring for supply and was a good entry; however as you mentioned the market stalled and went sideways for an hour or two - this was to be expected as we had known supply to the left. This area must be taken into account before the trade was placed and have a plan set out in advance covering all possibilities and how you would react this will ease any tension/anxiety that you may of had holding the trade. A good looking shakeout bar is the 16:00pm bar, contextually correct

As for absorption, it is a very lengthy subject, I could write pages on the matter. There are some editions of the Chronicles covering Absorption (the editions are labelled as such). I would suggest to study Wyckoffs original text on Absorbtion, a fantastic read/case study

Hope this helps,

F
 
Jul 14, 2008
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#43
ES 31st July 17

Wyckoff and VSA principles at play in today's action:

Distribution (5m) A core Wyckoff component
Hidden upthrust setup
Upside shakeouts
Shortening of the Thrust
Waves (setup)
Spring

PDF attached (4 pages)
 

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Jul 14, 2008
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#44
ES 1st August 17

Wyckoff and VSA principles at play in today's action:

VSA - No demand (setup)
Spring (setup)
Effort vs Result (excellent example)
Bar by Bar analysis

PDF attached (3 pages)
 

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Jul 31, 2017
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#45
From an aspiring trader of the same discipline looking to put in the work to get where you are - thank you for each and every post. There is a gold mine of knowledge in this thread, I will be catching up for quite some time.