The basics of a Wyckoff cycle

in #cryptocurrency4 years ago (edited)

Richard Demille Wyckoff was a trader of the 19-20th centuries (yeah, they were charting with papers and pencils)

He is the inventor of what we call "Wyckoff cycles", we could write thousands pages about it, but I will teach you only the accumulation-distribution principle.

Here is a classic W. cycle:

It is extremely visible in the altcoin charts. Take a look at Siacoin, we can see 3 cycles, separated by vertical white lines:

It is not always as perfectly drawn, many other factors can get in and disturb it, as we will see in the next example.

See this bitshares chart, search for yourself the different phases. I'm sure you'll find.

Looking at the price this way, it looks easy to buy low & sell high

The main thing is to control your emotions:

  • If your fear is too high, you might desperately wait for a dip, when we are already in the buy rally!
  • If your greed is too high, you might end never selling and getting stuck in the wheel of hope, until you get to the next accumulation phase!

It doesn't matter if your exit/entry isn't perfect, as in long term you are sure to make profit if you take action.

If you have still doubts

About all this cycle "theory", refer to dogecoin's price action:

Legal disclaimer: Sue me if you lose. I will go to jail  and give you my money. I am responsible for what you do. By reading  the article, you did accept to comment, vote, and resteem it. 

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Great article and synopsis. Resteemed. Love technical analysis. Im buying now.

Yeah, TA is very useful. Thanks for the resteem!

What I’m bad at is the exit. I wish I had a crystal ball

You should draw the levels where you will sell at the same moment you buy. Corresponding to previous resistance.
You may want never sell more than 50-60%, just in case it get overly bullish a la bitcoin/ethereum back in the days 😉

I’ve heard that before about making an exit plan before you buy. So you never sell more than half?

So you never sell more than half?

It depends what I sell.
For example, last time I sold 100% of my dogecoins. But I don't do the same with projects whose I have "faith" for.

I use your content, it's really awesome, thanks🌷🙏

Its awesome if it's useful for you 😀

hey bto، I also specialize in this subject, to share?🙈

Enough of the accumulation, let's start distributing :)

Patience is the key!

Very useful article dear @toucancrypto. Thank you for sharing such a kind info. It is really very helpful.

It was an interesting cycle
I used to take advantage of your post
Thank you for subscribing to this post
good luck

.....I see all your articles, articles are very good for me....

Hello @toucancrypto, how is family and work, trust you're doing great.
Wow this a great article illorstration, I think this would make the transaction to be easier. Thanks for sharing this.

I'm coming to your blog every day, why not send post?❤🌷

What do you mean ?

Why have your posts dropped?

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