Identification of weakness within strength (start of distribution) and strength within weakness (start of accumulation) is a hallmark of the, more than century old, Wyckoff Method. Can this approach put analysts and speculators on the alert for trend changes in an early and timely way that rivals the best of the more modern approaches? Is this methodology still relevant in today’s fast moving financial markets? A brief review of the classic Wyckoff Method begins this discussion. By blending vertical barchart analysis with Point & Figure studies these emerging conditions are identified and market strategies and tactics are then applied. A review of the recent change of trend in major indexes are studied using Wyckoff Power Charting blog posts and videos. The paradox of sentiment at market extremes is considered with a discussion of why contrary opinion is a difficult concept for investors. Point & Figure and Vertical charts are brought up to date for major indexes.
Correction: On the final PnF chart ($SPX 3 box 20 point scale) I had indicated that the smaller PnF count had been fulfilled. Though in the vicinity of support the minimum objective of 4,080 has not yet been fulfilled.
Link to the upcoming event ‘Trade Mindfully, Achieve Optimal Trading Performance with Mindfulness & Cutting-Edge Psychology’ presented by Dr. Gary Dayton
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