Whckoff Trading Rules

Price movement should always be proportional to volume

Bullish Movement 1. Moderate Volume & Price Up 2. High Volume & Price Up 3. Low Volume & Price Down 4. High Volume & Price Down Modestly

Whckoff Five Methods

1. Determine the present position and probable future trend of the market. Then decide how you are going to play the game. Use bar charts and point-and-figure charts of market index. 2. Select stocks in harmony with the trend. If you are playing the game long, select stocks which you believe are stronger than the market. If you are not sure about an individual issue, drop it. Use bar charts of individual stocks. 3. Select stocks with cause that equals or exceeds minimum objective. Choose stocks that are under accumulation or re-accumulation. Use point-and-figure charts of individual stocks. 4. Determine the stocks readiness to move. Rank stocks in order of your preference. Use bar charts and point-and-figure charts of individual stocks; apply the nine tests for buying or selling.

1. Extremely high volume usually marks a turning or a hesitation point.Moderate Volume & Price Down 2. Extremely low volume often immediately precedes extremely high volume. 3. A moderate to wide price spread created by moderate volume is usually bullish (implying few sellers).

4. A wide advance created by strong volume is almost always bullish (implying strong demand). 5. Retests and corrections should be accompanied by generally lower volume. 6. Volume should increase on legitimate breaks from technical patterns.

Bearish Movement 1. Low Volume & Price Up 2. High Volume & Price Up Modestly 3. Moderate Volume & Price Down 4. High Volume & Price Down

5. Time your commitment with a turn in the stock market index. Put your stop-loss in place and relax. Then follow through, until you close out the market position. Use bar charts.

Wyckoff Buying Tests

Nine Classic Tests for Accumulation
1. Downside price objective accomplished 2. Preliminary support, selling climax, secondary test.High Volume & Price Up Modestly 3. Active bullish (volume increases on rallies & diminishes during reactions 4. Downward stride broken (that is, supply line penetrated) 5. Higher supports 6. Higher stops 7. Stock stronger thank the market (that is, stock more reponsive on rallies & more resistant to reactions to reactions than the other market index) 8. Base forming (horzontal price line)

Position Studies
Principles of Interest for Chart Reading
1. Support & Resistance Checks 2. Trending Checks (path of least resistance) 3. Supply & Demand Checks (compare & confirm) 4. Ease of Movement 5. Follow Through 6. Clustering of the closes (no net progress) 7. Cause & Effect 8. Effort vs Result

9. Estimated upside profit potential is at least three times the loss if protective stop is hit

Absorption Areas: price advanced on expanding volume, has a reaction on lesser volume (back ground). Price movement small ranges, holding gains.