<b>Wyckoff Market Analysis</b>http://stockcharts.com/school/doku....t_school:market_analysis:wyckoff_market_analy
1/ Richard D. Wyckoff, a perpetual stock market student, was a great trader and a pioneer of technical analysis. Based on his theories, studies and real life experiences, Wyckoff developed a trading methodology that has stood the test of time
2/ Richard Wyckoff began his Wall Street career in 1888 as a runner scurrying back and forth between firms with documents. As with Jesse Livermore in the bucket shops, Wyckoff learned to trade by watching the action first hand. His first trade occurred in 1897 when he bought one share of St. Louis & San Francisco common stock. After successfully trading his own account several years, he opened a brokerage house and started publishing research in 1909.
<b>Two Rules</b>
Wyckoff focused exclusively on price action. Earnings and other fundamental information were simply too esoteric and imprecise to be used effectively. Moreover, this information was usually already factored into the price by the time it became available to the average speculator. Before looking at the details, there are two rules to keep in mind. These rules come directly from the book, Charting the Stock Market: The Wyckoff Method, by Jack K. Hutson, David H. Weiss and Craig F. Schroeder.
<b>Rule One:</b> Don't expect the market to behave exactly the same way twice. The market is an artist, not a computer. It has a repertoire of basic behavior patterns that it subtly modifies, combines and springs unexpectedly on its audience. A trading market is an entity with a mind of its own.
<b>Rule Two: </b>Today's market behavior is significant only when it's compared to what the market did yesterday, last week, last month, even last year. There are no predetermined, never-fail levels where the market always changes. Everything the market does today must be compared to what it did before.
1/ Richard D. Wyckoff, a perpetual stock market student, was a great trader and a pioneer of technical analysis. Based on his theories, studies and real life experiences, Wyckoff developed a trading methodology that has stood the test of time
2/ Richard Wyckoff began his Wall Street career in 1888 as a runner scurrying back and forth between firms with documents. As with Jesse Livermore in the bucket shops, Wyckoff learned to trade by watching the action first hand. His first trade occurred in 1897 when he bought one share of St. Louis & San Francisco common stock. After successfully trading his own account several years, he opened a brokerage house and started publishing research in 1909.
<b>Two Rules</b>
Wyckoff focused exclusively on price action. Earnings and other fundamental information were simply too esoteric and imprecise to be used effectively. Moreover, this information was usually already factored into the price by the time it became available to the average speculator. Before looking at the details, there are two rules to keep in mind. These rules come directly from the book, Charting the Stock Market: The Wyckoff Method, by Jack K. Hutson, David H. Weiss and Craig F. Schroeder.
<b>Rule One:</b> Don't expect the market to behave exactly the same way twice. The market is an artist, not a computer. It has a repertoire of basic behavior patterns that it subtly modifies, combines and springs unexpectedly on its audience. A trading market is an entity with a mind of its own.
<b>Rule Two: </b>Today's market behavior is significant only when it's compared to what the market did yesterday, last week, last month, even last year. There are no predetermined, never-fail levels where the market always changes. Everything the market does today must be compared to what it did before.
