Wyckoff (Accumulation / Distribution)
Phase-based reading method to identify institutional accumulation and distribution zones.
Continuation
Difficulty: ●●●●○
Reliability: 7/10
Richard Wyckoff (1930s) — based on observing "composite man" (large players).
Accumulation phases (bottom)
- Phase A: Preliminary Support, Selling Climax — end of decline
- Phase B: Building Cause — long horizontal accumulation
- Phase C: Spring — false bearish breakout then test
- Phase D: Markup — start of true rally, Signs of Strength
- Phase E: Uptrend continuation
Distribution phases (top)
Mirror: PSY, BC, AR, ST, UTAD, SOW, LPSY, Markdown.
Key concepts
- Volume: Wyckoff reads volume as proof of institutional intent
- Spring: invalidation of bearish breakout = strong buy signal
- Upthrust: mirror at top = strong sell signal
When to look
On extended ranges. Wyckoff shines in consolidation.
Confirmation
Spring/upthrust is the signature. Confirmed by range break with volume.