Weighted Move
Volume Spread Analysis glossary · Wyckoff Phases & Schematics
Definition
The VSA principle that markets, like a weighted coin, develop a directional bias once enough stock has been transferred between weak and strong holders. Accumulation weights the market to go up; distribution weights it to go down. The amount of accumulation or distribution determines how far the subsequent move can travel—a wide accumulation base produces a large mark-up, while a narrow base produces a small one. This is why point-and-figure charts (which measure the width of the cause) are used to estimate the height of the eventual mark-up or mark-down.
Weighted Move in plain English
Imagine a coin that's been secretly weighted on one side — flip it enough times and it starts landing the same way over and over. That's what happens to a market once shares quietly move from nervous, casual owners ('weak holders') into the hands of big, patient professionals ('strong holders'): the market becomes biased to drift in the pros' favor — up if they were buying (accumulation), down if they were selling (distribution). The clever part is that the SIZE of that quiet buying or selling roughly predicts how big the eventual move will be — a wide, drawn-out buying zone stores up energy for a big rise, while a small one only fuels a small one. This is why some traders use point-and-figure charts, which literally measure how WIDE the quiet zone was, to estimate how HIGH the price will later climb.
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