Steemit Crypto Academy - Season 2 Week 8, The Wyckoff Method By: @zeeshanakram

Assalam-u-Alaikum!

Hello to all steem community members . i hope you will be fine and enjoying a good health by the grace of God . i am also fine. Today i will talk about Wyckoff , lets start our work.

"Composite Man" and the fundamental laws

When we're talking about the Composite Man, you'd think we're talking about a real person, let me explain a little bit that the Composite Man is just a representation of the entire market at one point like, we can imagine it as a Composite man, let's imagine that only one character is running the entire market, and that's what's going on around it, and this suits us because we can understand in a better way how the market is moving and its changes, in this way we can analyze the market and see how it will move soon.We have to follow the patterns given to us by Professor Fendit in the chapter on the movements of volumes which are represented in the graph itself using the Wyckoff method

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The composite man: looking at him as a single character he moves in the market following a pattern, this we can see in 4 phases

Accumulation:

If we want to see that the best part is after the rally or the fish rally, when the composition man at low prices creates some resistance because we should say it at this point and the price is long and the price neither increases nor Only then does the price increase. Downstairs and you keep buying on small limits. This is to reduce the demand for sales a little bit, and this is where the psyche starts to work, it can take advantage of a moment or a little uncertainty. The situation can get worse as small investors start buying that way. The price goes up and they are able to sell at the place where the comprehensive man wants to sell for profit.

uptrend / Price rises:

When the accumulated value is depleted, the token begins to deplete so that the compositor can fulfill his mission, the value will increase as new investors from small scale move the market. When we look at the chart we see that How Demand Increases Prices Obsilando This means that when this trend is happening, there may be some small trends to re-accumulate.

Distribution:

When the comprehensive man reaches his limit, he starts selling at a small percentage, and there is a limit to take full advantage of this position to take advantage of the new investors. Take advantage of those who come to see the movement and think that it is being done, instead of bringing this stage of division to this point, to understand more about the model time to stay at this point for a relatively period. Whether or not a comprehensive human being is needed.

Downward / Downward trend in price:

When the composite man has already done his job, he then sells the composite in large quantities to change the direction of the pattern and reduce asset prices, making it available to newcomers or investors. Fear arises and they are psychologically forced to sell at a lower price than they do. That the composite man finally completes his stages and once again he buys at low points to start the four stages of the composite man again.

The fundamental laws of composite man:

Law of supply and demand:
When the volume of sales exceeds the purchase price, the price falls, which means that there is very little interest in buying. Many people are willing to sell due to a variety of factors including the process, and when the price changes. Yes, there are other buyers. Compared to the seller, it is the most commonly used price artificial man is the basic law of manipulation in the psychological market
. If more people sell the price, and if more people buy, the price goes up. When you have more than 51% of the token, it gets tampered with. Whales usually have the ability to manipulate the price of these so-called "compound man" whales.

law of cause and effect:

We are all creating an ecosystem where all movements influence each other. In other words, if a complex person has a lot of assets at the time they are accumulated in the market, a new person will try to get them. That would be very difficult. Even if the price they are looking for is not the price that compound interest people want to buy for you, the price will start to rise slowly, widening the shortage and taking advantage of this moment in the currency. Means to rise. Until then, the trend is higher than that.
Thus, the same thing happens when the "complex person" decides to sell this stage: for maximum profit. In this phase, prices go down and reach the end of this phase.

Law of effort and result:

This law has two very important factors: power effort and volume. It is raising the market, but at some point it is falling at the same rate as when this price was rising.

My point of view:

Psychologically considering that millions of people buy and sell assets, getting an account turns out to be very complicated and tedious, so it's a single person called a compound man. Imagine that, psychologically, the method is very easy to predict. Good profits in our business when we find that prices do not fluctuate and areas where prices are still very low are formed. To get, you have to run the same current as he does through the analysis of a compound man, according to the first sell and buy signs, we have to buy and then go surfing with a strong man not. In this way we can maximize our profits. All the steps I mentioned above must be followed with a strong man.

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Share cryptocurrency charts (BTC or ETH is not accepted as an example of this task) and use this method to analyze them. It clearly shows how the volume changes at different stages and details what is visible.

phase 1

You can see that FLM / USDT has a compound man pattern

According to Wykov's theory, the movement is large, but the volume that follows it is small, so here the upward force is small, convincing us that nothing is happening. Less than.

Phase 2

At this stage, the rise is imminent. Looking at the graph, we can see that it is rising again towards re accumulation.

Phase 3:

The decrease in trading volume shows that, as stated in Wyckoff's theory, the compound person will not let the price fall further. What he wants is to reach a price or a stage where he will make a profit, and then the trading volume decreases. Then the price starts to rise according to your strategy

phase 4

Wyckoff said that the price is at the highest point and the compound man is ready to sell everything, so he tries to sell every time he sells the price. The opposite strategy is to deceive novice buyers and let them buy at a high price at 27 points in the chart. We see low volume, which is done by compounders to attract more investors and deceive them, and then sell everything and turn the trend into a bearish trend in the next phase.

phase 5

At this point, the people formed according to Wyckoff’s theory will profit by selling everything in this way, bringing us to the lowest level here, with greater power, because starting from point 28, the outside begins to be in a downward trend, which Lead us to a stage of redistribution to maintain a range in this part. Buyers and sellers

phase 6

It was overselling before the all-man got ready to buy again and reconfigure the shekel so that everyone could shake off the fear and had to sell to the all-man to buy from the panicked sellers. There are those who do not. You want to lose money when the price goes down that way.

Conclusion:

Wyockoff's method is a clear example of imitation in market trends. This means that whenever the method implemented by the composites can be clearly predicted, very few people will try to enter the market. Market. Understanding this process allows us to get into it, but we need to pay close attention to the signals that the market shows us so that we can get the most out of it. That's why it can greatly benefit our investment portfolio. Research is the basis, and good technical analysis and identification of sports are the basic points we must follow.

Cc

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Regards

@zeeshanakram