Mastering Wyckoff Volume and Price Analysis: 6 Principles for Successful Trading

#wyckoff supply and demand priceSix principles for playing with volume and price:1. Art rather than scienceVolume and price analysis is an art, not a science. He cannot conduct volume and price analysis through software. The reason why he is not competent in volume and price analysis is very simple, because most of the analysis is subjective. What we have to do is to compare and analyze the price behavior and the corresponding trading volume, looking for mutual confirmation or anomalies. At the same time, compare the historical trading volume to determine the size of the current trading volume. There is no quantitative standard here to tell you how big or small the trading volume is, or how much the price can rise based on the trading volume.2. PatienceMarkets never stop suddenly and then reverse. It takes some time for all the sellers or buyers in the market to be completely cleared out, and it is this continuous tug-of-war that creates the price range in an extended market, regardless of whether the previous market was rising or falling.The essence of volume and price analysis is not to act immediately once a signal appears. Most signals are not warnings of an immediate reversal and we should remain patient.Please be patient. The reversal will eventually come, but it does not come immediately after a certain K-line chart sends a signal.3. RelativityThe analysis of trading volume is always relative, we are comparing the current trading volume with the past trading volume to determine whether it is higher, lower, or equal to the past trading volume. If the data is imperfect, it doesn't matter because we are comparing imperfect data to imperfect data.4. Practice makes perfectNeedless to say, I know a few masters of quantity and price who have reviewed reviews * 10,000 times and have written hundreds or thousands of review essays.5. Technical analysisVolume and price analysis is only a part of Wyckoff. Trend analysis is equally important, as is price pattern analysis. They are all components of technical analysis as an art.6. Confirmation or abnormalityEfforts must have results. When efforts have no results, there is an abnormality. When using volume price analysis as a tool of analysis, we are only looking for two things. Is the price confirmed by volume, or is there an anomaly in the price. If the price is confirmed, then the continuity of the price action will also be confirmed.In contrast, if anomalies are present, that is a sign that there is underlying change. These two things are what we look for when using volume price analysis.

标签： FOR