Wyckoff Accumulation/ Distribution (WAD)- Day Trading NF


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Distribution 1 & 2- below are the schematics for distribution 1 & 2. there may be many variations to them. the basic difference between them... 1 is having an upthrust (fake out) most of the time this is the distribution one should look for as it is easy to find and analyze, distribution 2 is complex as it does not have a fake-out one way to identify it is to find LH LH in a trading range, which signifies the dominant pressure.

distribution 1:-

distribution 2:-


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below are the main events that happen in distribution:

PSY - Preliminary Supply. Substantial selling begins to provide pronounced resistance after an up-move. Volume and spread may widen and signal that the upmove may be ending in the near future.

BC - Buying Climax. This is the point at which the force of buying climaxes and is often characterized by gaps up, widening spread, and increased volume and price velocity. Heavy demand by the public is being filled by larger professional interests at prices near a top. This event often occurs on good news or in apparent response to stellar earnings.

AR - Automatic Reaction. With the urgent buying pretty much exhausted and heavy supply continuing, an AR follows the BC. The low of this selloff helps define the lower boundary of the distribution trading range (TR).

ST - Secondary Test(s). Price revisits the area of the Buying Climax to test the demand/supply balance at these price levels. If a top is to be confirmed, supply will outweigh demand; volume and spread should diminish as the market approaches the resistance area created by the BC. Secondary tests of demand occur multiple times as the TR unfolds.

SOW-Sign of Weakness. An SOW at or below the level of the AR will usually occur on increased spread and volume. Supply is dominant, but sufficient demand remains to elevate price into the TR again.

UT- Upthrust (as an ST). In a distribution TR, an upthrust occurs when the price rallies above the level of the BC, and subsequently falls (often immediately) back into the trading range.

UTAD - Upthrust After Distribution... Similar to the Spring or Shakeout in an Accumulation TR, a UTAD may occur late in a Distribution TR. It is a false breakout above the upper resistance line of the TR, orchestrated by dominant interests to provide a more definitive measure of remaining demand.

Test - Professional interests may test to assure themselves that there is poor- quality demand again after a UTAD or LPSY.

LPSY- Last Point of Supply. After a UTAD or MSOW, a feeble rally attempt with narrow spreads and low volume shows the difficulty the market is having in going up. Volume may be light or heavy, showing weak demand or substantial supply. LPSYs can be considered as tests of the demand/supply balance, and represent the last waves of distribution before markdown begins. (Despite the adjective "last," there can be multiple LPSYs in a TR.)

MSOW-Major sign of weakness. A pronounced break below the low of the TR will likely be followed by (generally unsuccessful) attempts to get back above it. The LPSY following an MSOW is analogous to the Backup in an Accumulation TR and often represents a good place to initiate short positions or to add to profitable ones.

this complete both basic accumulation/distribution concepts. I will put some examples of distribution also


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11-12-20 GOLDM 2M distribution with UTAD


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11-12-20 NF 1M distribution. a very complex distribution. was able to pick only after UTAD (this is the beauty of the method as there are many reference points to pick the pattern). but the good part is UTAD most of the time is not an entry point for me. additional confirmation from a break of TL and convergence of TLs. not shown on chart but HOD is at significant resistance of HTF (30M)


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one of the most important things one can try to master and see on the chart..." for the price to move up it has to go down first & for the price to move down it has to go up first."

once we are able to see this on the chart lower time frames like a tick and 1M will become very clear. and instead of finding patterns, one can "dance with the market".


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if anybody is interested in this way of trading and not able to find the A/D patterns in real-time. focus on identifying conventional reversal patterns like HNS etc as most of the time they are A/D patterns only. also, you will get the targets also.
another trick is to find 3 pushes pattern as at times both A/D has pushes
I will post some stuff on this.

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