Wyckoff for charting
What is the Wyckoff Method
The Wyckoff method is a time-tested technique for trading the markets, especially on longer time frames. The Wyckoff method is controversial in the crypto community because of Bart patterns and the general high volatility that accompanies new financial marketplaces for experimental assets.
Some swing traders on the large cap crypto markets do use Wyckoff method, though, and you will find the occasional Wyckoff report in communities frequented by Bitcoin traders in particular.
Wyckoff is Technical Analysis (and that comes with limitations)
The concept of the Wyckoff method is that price action, volume, and time can all be used to forecast supply and demand. This data may then be utilized to predict future market changes by betting on which pattern is most probable to develop.
That absolutely makes Wyckoff method a technical analysis. Technical analysis is not sacred.
It can help expect future direction of price action, but timing might be off.
It can help project target prices, but they can undershoot or overshoot.
I'll take the place of a normal risk warning, stating that once someone enters the market with a large quantity of money, any technical analysis is meaningless, which is why stop loss and risk management are necessary.
In the following infographic, the Wyckoffian idea of market cycle is fully explained. Look at the shapes of the range patterns. This is something you can easily learn to identify in any live market action. After some practice, you'll be able to "eyeball" these patterns and have a pretty good feel for what's going on.
The Wyckoff method is a controversial technique for trading the markets, but it does work fairly well as a tool to make sense of the price action, especially on longer time frames. The Wyckoff method is controversial in the crypto community because of Bart patterns and the general high volatility that accompanies new financial marketplaces for experimental assets.
However, some swing traders on the large cap crypto markets do use Wyckoff method, and you will find the occasional Wyckoff report in communities frequented by Bitcoin traders in particular.
Infographic source: AltcoinTrading.NET
