11 Tweets 10 reads Mar 18, 2024
This multi-bagger formula will help you find good stocks at the lowest prices.
The Wyckoff method.
If you understand this, you won't need anything else
#niftysmallcap #StockMarket #stockmarketcrash #OptionsTrading
In this thread, we will understand
1. Practical examples
2. Accumulation phase
3. Markup phase
4. Distribution phase
5. Markdown phase
6. Entry
7. Exit
8. Golden Nuggets
Lets discuss one by one
1. Everything that goes down comes up
It is the law of stock market.
Due to auction market theory, this is normal
Here is one example
2. Characteristics of Accumulation phase
a. smart money is silently buying
b. Lots of negative news about stock
c. There is fear among retail investors
d. Market is at 52 week low
e. poor earning report
3. Characteristics of Markup Phase
a. Smart money is pushing the stock
b. Early TA traders have entered
c. Still negativity around stocks as smart money do not want retailers to know their intention
d. Stock has broken out from the first phase
e. Volume started to appear
4. Characteristics of Distribution phase
a. Smart money is dumping the stock
b. Stock becomes overvalued
c. Positive news surrounding the stock
d. retailers are dreaming about multibagger return
e. stock is at 52 week high
d greed among retailers
5. Characteristics of markdown phase
a. Smart money is out of the stock
b. retailers starts to panic
c. There is hope among retailers
d.volume drying up
e. stock is going down fast
6. How to trade wyckoff method
How to enter
1. Wait for selling climax . it is the first sign of A phase
2. Enter during breakout of A phase, unless you have deep pockets and can wait for 1-3 years for A phase to be over
3 If you missed the entry at 2 wait for pullback
7. How to exit
1. First sign of exit is buying climax
2. Second sign of exit is double top
3. Thirs sign of exit is break of D phase
8. Important Nuggets
a. This method works in all kinds of markets
b. Use it in higher TF
c. Identify which type of trader you are, fundamentalist or technical analyst
d. If you are FA enter during A phase AND if your TA enter during breakout
Please ask if you have any doubts
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