Wyckoff Wave Chart

pavilion103 · 19 July 2012

I am continuing to re-read the Wyckoff course. In Section 22M it specifically deals with "The Wave Chart."

I would like to know how people incorporate this into their trading.

I understand the basics, that by looking at the waves you can tell the duration of moves and strength of moves relative to other waves. I understand that it is useful for determining the quality of the wave by using; quality = volume/time.

My question is: Does anyone construct these charts and total up the volume and duration of each wave? Or do you look at it in a more general sense which obviously becomes clearer and easier with practice and experience?

joea · 21 July 2012

pavilion103 said:
I am continuing to re-read the Wyckoff course. In Section 22M it specifically deals with "The Wave Chart."

I would like to know how people incorporate this into their trading.

I understand the basics, that by looking at the waves you can tell the duration of moves and strength of moves relative to other waves. I understand that it is useful for determining the quality of the wave by using; quality = volume/time.

My question is: Does anyone construct these charts and total up the volume and duration of each wave? Or do you look at it in a more general sense which obviously becomes clearer and easier with practice and experience?

http://www.readtheticker.com/Pages/Blog1.aspx?65tf=637_inter-market-cycle-review-2012-07

This is an example. It is one of their indicators.
Go to home page, and at the bottom tick indicator.

volume/time is "cumulative volume".
cheers joea

joea · 21 July 2012

pavilion103 said:
I am continuing to re-read the Wyckoff course. In Section 22M it specifically deals with "The Wave Chart."

I would like to know how people incorporate this into their trading.

I will attempt to give my thoughts.
I do not have a wave indicator. I am looking for a stock with a preferred move.
There are approx. 27 Indices. Each has a Index composition.

A specific Indices can be observed or compared to the XAO or XJO by RSC.
The Indices preferred is selected, and a scan can be run on the Index composition.
This will pick the stocks that are behind the movement of the wave.
Stocks to trade can then be selected on their merit.

I am looking for the best stock with strength in an Indices or commodity, relative to the market chosen to trade.

I you intend to buy a book. Check the contents, glance through the chapters, then make a decision.
If you buy a apple, check the preferred type, look at the individual fruit and select the apples with no bruises.
KISS... Keep it Simple Stupid. It my motto for me.
joea

tinhat · 22 July 2012

joea said:
http://www.readtheticker.com/Pages/Blog1.aspx?65tf=637_inter-market-cycle-review-2012-07

This is an example. It is one of their indicators.
Go to home page, and at the bottom tick indicator.

volume/time is "cumulative volume".
cheers joea

Not sure what you are advising. Are you suggesting clicking through to the "Indicator Library" page?
http://www.readtheticker.com/Pages/IndLibrary.aspx

joea · 22 July 2012

tinhat said:
Not sure what you are advising. Are you suggesting clicking through to the "Indicator Library" page?
http://www.readtheticker.com/Pages/IndLibrary.aspx

On home page there is a cluster of small print in the middle on the bottom.
Indicator explains the indicators.
Education has a list of books and a couple of PDF's that will open.

When these fellows wrote some of this there were no computers and probably no indices.

Now you can use a commodity or indices. All the hard work is done.
e.g. take gold index. If it is moving up, and XJO is moving up, check your gold watch list for the stocks ready to move up. (I ensure the $us is on the way down.).
joea

joea

muir · 14 December 2013

pavilion103 said:
I am continuing to re-read the Wyckoff course. In Section 22M it specifically deals with "The Wave Chart."

I would like to know how people incorporate this into their trading.

I understand the basics, that by looking at the waves you can tell the duration of moves and strength of moves relative to other waves. I understand that it is useful for determining the quality of the wave by using; quality = volume/time.

My question is: Does anyone construct these charts and total up the volume and duration of each wave? Or do you look at it in a more general sense which obviously becomes clearer and easier with practice and experience?

"My question is: Does anyone construct these charts and total up the volume and duration of each wave?"

Yes. (short answer)

Re-read 22M (better answer)

Read-read 22M paying special attention to page14 footnote: "These comparisons should be made when...market is becoming critical... To make them every... will result in confusion and needless expenditure of time and effort."
(much better answer)

"I would like to know how people incorporate this into their trading."

That I cannot answer.

But be careful in substituting the "Weis wave indicator" or "Ord volume" for Wyckoff's Tape Reading chart or the "Wave chart".

These both fall short.

If you posted this last year and had questions on 22M, you are probable doing just fine by now.

>Apocalypto< · 18 December 2013

looks like an ATR

muir · 20 December 2013

>Apocalypto< said:
looks like an ATR

It isn't.
In fact it is not a mathematical indicator, it isn't even an indicator. At least how most think of these things.

>Apocalypto< · 20 December 2013

muir said:
It isn't.
In fact it is not a mathematical indicator, it isn't even an indicator. At least how most think of these things.

ease up GF i was having a little fun.

muir · 30 December 2013

>Apocalypto< said:
ease up GF i was having a little fun.

"Susan Calvin: Are you being funny?"

"Detective Del Spooner: I guess not."

Stock Jock · 24 September 2014

Wyckoff trading method / Jump Over Creek

pixel · 24 September 2014

Stock Jock said:
Wyckoff trading method / Jump Over Creek

Are you sure that's the right link? My Russian is a little rusty.

Stock Jock · 7 October 2014

Stock Jock · 14 October 2014

Stock Jock · 20 October 2014

inner_silence · 18 April 2018

pavilion103 said:
I am continuing to re-read the Wyckoff course. In Section 22M it specifically deals with "The Wave Chart."

I would like to know how people incorporate this into their trading.

I understand the basics, that by looking at the waves you can tell the duration of moves and strength of moves relative to other waves. I understand that it is useful for determining the quality of the wave by using; quality = volume/time.

My question is: Does anyone construct these charts and total up the volume and duration of each wave? Or do you look at it in a more general sense which obviously becomes clearer and easier with practice and experience?

Hello,
I am also reading the Wyckoff book and came across the Wave chart. Have you figured out how to calculate the "Activity Index" required to build the wave chart? If you look at Figure-2 far right column on Section 22M Page-11 you will notice Activity Index given. I can't figure out how is it calculated and any help on this would be highly appreciated.

Thanks and happy capitalism !!!

Gringotts Bank · 19 April 2018

Which book has section 22M?

inner_silence · 19 April 2018

Gringotts Bank said:
Which book has section 22M?

Methods of trading and investing in stocks by Richard Wyckoff

Gringotts Bank · 19 April 2018

Wave 'quality'.

Ticks*volume/time..... or .... ticks*volume*time?

Like two boxers, bear and bull, tradng punches. Volume = force, ticks = reach, time = time. So for maximum impact, V*T/t.

Gringotts Bank · 19 April 2018

Say the bear boxer is winning. The bull boxer delivers an impactful blow - forceful, long reach and lasting a short time. That's the initial reactive wave, I guess. They continue to trade blows until through fatigue, the bear boxer's punches only open him up more. Those weak 'punches' lack volume and speed primarily, though they may have some reach. The reach is "allowed" because the bull boxer knows that the further he reaches, the more vulnerable he is. That's the 'spring'.

So an impactful blow followed by a low volume, low speed (high time) attempt = 'change of behaviour'.

Ticks (reach) only need be above a threshold amount. Gotta make contact with the opposition, after all. A 5 tick 'punch' will have no impact.

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