hard · Volume Price Analysis wyckoff-laws
A trader maps a market as: a multi-week base (Phase A), a sloping advance with rising volume on up-bars (Phase B), a sharp blow-off rally that finally fails (Phase C), and a slow grinding decline (Phase D).
Under Wyckoff's four phases as Coulling teaches them, what is the single most serious error in this mapping?
- Phase C should be relabelled the accumulation base and Phase A should be relabelled the markup phase, meaning all four labels are simply rotated one step forward
- The grinding decline is mislabelled: distribution must precede the markdown, so the failing blow-off is the distribution phase and the decline is the markdown that follows it
- Phase B cannot legitimately show rising volume on up-bars, because healthy markup, by strict Wyckoff definition, always proceeds on steadily declining volume and participation
- The base should instead be labelled distribution, because every multi-week sideways structure preceding a subsequent advance is, by strict Wyckoff definition, a distribution zone
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