0: Structures, Volume Profile and Order Flow Combining the logic of the Wyckoff Methodology and the objectivity of the Volume Profile Rubén Villahermosa Chaves Liên hệ zalo: 0898424904 để được hỗ trợ tải nhanh nhất Copyright © 2021 Rubén Villahermosa Chaves All rights reserved No part of this book may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, or by photocopying, recording, or otherwise, without the express permission of the publisher. Liên hệ zalo: 0898424904 để được hỗ trợ tải nhanh nhất Content PROLOGUE PART 1. ADVANCED CONCEPTS OF THE WYCKOFF METHODOLOGY 1.3 ADVANCED CHART TYPES 1.4 ACCUMULATION OR DISTRIBUTION FAILURE 1.5 STRUCTURAL FAILURE Liên hệ zalo: 0898424904 để được hỗ trợ tải nhanh nhất 1.6 SHORTENING OF THE THRUST (SOT) 1.7 OTHER TYPES OF STRUCTURES 1.1 STRUCTURES WITH A SLOPE 1.2 UNUSUAL SCHEMES PART 2. RESOLUTION OF FREQUENT DOUBTS 2.1 EFFICIENT USE OF LINES 2.1 THE IMPORTANCE OF CONTEXT 2.2 LABEL CHANGES AND SCENARIO PLANNING 2.3 HOW DO YOU DISTINGUISH BETWEEN ACCUMULATION AND DISTRIBUTION? 2.4 HOW TO ANALYZE A CHART FROM 0? Liên hệ zalo: 0898424904 để được hỗ trợ tải nhanh nhất 2.3 DECREASE IN TEMPORALITY.
STRUCTURES FROM MAJOR TO MINOR 2.4 INCREASE IN TEMPORALITY. STRUCTURES FROM MINOR TO MAJOR 2.5 WHAT TO DO WHEN THE CONTEXT IS NOT CLEAR? 2.1 THE CONTROLLER PART 3. THE CURRENT TRADING ECOSYSTEM 3.1 TYPES OF PARTICIPANTS IN THE FINANCIAL MARKETS 3.2 HIGH FREQUENCY TRADING Liên hệ zalo: 0898424904 để được hỗ trợ tải nhanh nhất 3.3 OVER THE COUNTER MARKETS 3.5 ARE MARKETS RANDOM OR DETERMINISTIC? 3.1 THE ADAPTIVE MARKET HYPOTHESIS 3.2 WHERE DOES THE WYCKOFF METHODOLOGY FIT IN? PART 4. THE IMPORTANCE OF VOLUME 4.1 AUCTION MARKET THEORY 4.3 THE FOUR STEPS OF MARKET ACTIVITY 4.2 THE LAW OF SUPPLY AND DEMAND 4.1 COMMON INTERPRETATION ERRORS Liên hệ zalo: 0898424904 để được hỗ trợ tải nhanh nhất 4.2 BID/ASK, SPREAD AND LIQUIDITY 4.3 TYPES OF PARTICIPANTS BASED ON THEIR BEHAVIOR 4.4 HOW DOES THE PRICE MOVE? 4.5 HOW DO MARKET TURNS OCCUR? 4.1 ADVANCED ORDER TYPES 4.4 TOOLS FOR VOLUME ANALYSIS 4.5 THE ORDER FLOW PROBLEM Liên hệ zalo: 0898424904 để được hỗ trợ tải nhanh nhất 4.1 PROBLEM #1 PRICE DIVERGENCE 4.2 PROBLEM #2 DELTA DIVERGENCE 4.3 PRICE & VOLUME OPERATOR 4.1 AUCTION MARKET THEORY + VOLUME PROFILE 5.2 VOLUME PROFILE COMPOSITION 5.4 DIFFERENCE BETWEEN VERTICAL AND HORIZONTAL VOLUME 5.5 DIFFERENCE BETWEEN VOLUME PROFILE AND MARKET PROFILE 5.6 PROFILE SHAPES Liên hệ zalo: 0898424904 để được hỗ trợ tải nhanh nhất 5.7 VOLUME PROFILE USES 5.2 DETERMINING MARKET BIAS 5.3 TREND HEALTH ANALYSIS 5.5 CALIBRATION OF POSITION MANAGEMENT 5.8 OPERATIVE PRINCIPLES WITH VALUE ÁREAS 5.1 TRADING RANGE PRINCIPLE 5.4 FAILED REVERSION PRINCIPLE 5.5 SUMMARY TABLE OF OPERATING PRINCIPLES WITH VALUE ÁREAS PART 6.1 READING THE FOOTPRINT 6.1 BEARISH ROTATION PATTERN: BUYING ABSORPTION AND INITIATIVE SELLING 6.2 BULLISH ROTATION PATTERN: SELLING ABSORPTION AND INITIATIVE BUYING 6.1 TRADING RANGE CONTEXT 7.3 OPERATING IN TRADING RANGE 7.4 OPERATING IN TREND 7.2 IDENTIFICATION OF ZONES AND OPERATIONAL LEVELS 7.3 SETTING UP SCENARIOS 7.4 WHAT TO DO WHEN THE PRICE LEAVES WITHOUT US? PART 8.1 EURO/DOLLAR CROSS CURRENCY ($6E) 8.2 POUND/DOLLAR CROSS CURRENCY ($6B) 8.4 US DOLLAR/CANADIAN DOLLAR CROSS CURRENCY ($6C) 8.5 POUND/DOLLAR CROSS CURRENCY ($6B) 8.6 EURO/DOLLAR CROSS CURRENCY ($6E) BIBLIOGRAPHY ACKNOWLEDGEMENTS ABOUT THE AUTHOR BOOKS OF THIS AUTHOR Prologue With the publication of this new content we give continuity to the first book "The Wyckoff Methodology in Depth", where all the analytical tools that this methodology covers are presented in a clear way, as well as the more theoretical aspect in the study of the behavior of financial markets.
In this book we will go a step further and discuss more complex concepts; we will review the doubts most commonly raised by students of the methodology and incorporate new tools based on the information provided by the volume data that will be very useful, such as the Volume Profile and Order Flow. I strongly recommend that before starting the study of this book you have previously internalized all the concepts covered in the first one, since everything seen is taken as understood and, if not, it could cause some confusion or lack of understanding. Liên hệ zalo: 0898424904 để được hỗ trợ tải nhanh nhất Part 1. Advanced concepts of the Wyckoff methodology Both the previous book "The Wyckoff Methodology in Depth" and this one do not intend to divulge at any time the approach of the Wyckoff methodology from its purest point of view.
There may be Wyckoff operators who do but we understand that today's markets have changed substantially from those studied by Richard Wyckoff and it is our task to know how to adapt to these changes. But if there is one thing that is invariable and where the advantage of this approach over others really lies, it is the principles on which his teachings are based. Regardless of how markets and their operators have changed, everything continues to be governed by the universal law of supply and demand; and this is the cornerstone of the methodology. This new way that I propose to analyze the markets has caused me some discussion with known (purist) disseminators of the method.
As I said, my objective is not to teach the most primitive form of the methodology, but to take the principles I consider valid and enhance them together with the most modern tools of volume analysis. In fact, I believe that spreading Richard Wyckoff's teachings as he shared them is practically impossible. In the end, each one teaches his point of view of the methodology together with the tools that give him more confidence; and this does not mean that any one is above the rest. The important thing is to obtain profitability from the market regardless of the approach used.
Having said that, I am sure that if Richard Wyckoff were alive today, he would have taken care to evolve his own teachings by adapting them to new markets. As he was at the time, he would still be a student of volume, and this would have led him to delve deeper into tools such as the Volume Profile and Order Flow. And this is exactly what we have done and what I will present to you throughout the book; bringing together the most solid principles of market analysis with the most advanced tools of volume analysis. But before we get to that point let's add some advanced concepts that you should know and clarify a number of doubts that occur frequently.1 The labels The entire theoretical section seen in the first book is a necessary and indispensable content to master this approach and truly understand how the market moves, but the Wyckoff methodology, or my way of understanding it, goes much further.
It is not simply a matter of labeling a chart almost robotically and that's it. We've learned what's behind each event; how it's formed, how it's represented on the chart, the psychology behind it, and so on. But as I say, the method is much richer. I mention this because, by the very nature of the market, it is practically impossible for two completely equal structures to occur.
Although it is true that every day we see "book" diagrams, which are very genuinely adapted to the classic examples, in most cases the market will develop less conventional structures, where the identification of such events will be more complex. It is therefore essential not to focus on the exact search for the events (mainly the stop events that make up Phase A) and to stay with the fact that what is really important is the action as a whole. That is, in many chartics we will see that a trend movement stops and starts a lateralization process, but we are not able to correctly identify those first 4 stop events. Maybe in view of this, we discard the asset and we are missing a future operational opportunity.
This is a mistake. As I say, the important thing is not that we are able to identify those 4 stop events, but that the market has objectively stopped the trend movement. It may not identify the Climax, the Reaction and the Test in a genuine way, but the objective is that the market has stopped and has started a change of character (migration from trend to lateral state). As we see in the examples, although these structures do not look anything like the classic ones already studied; if we open the chart and we find ourselves in that point that I mark with the arrow, it is not unreasonable to think that possibly below they have developed a process of accumulation.
It will be more or less difficult to identify the events of the methodology, but the objective is that we see a level where the price has rejected on several occasions (Creek) and that it has finally managed to break through and position itself above. This is the key. Surely if we force ourselves we can label each and every movement but I repeat that this is not the important thing. What is important about the methodology is the logic behind it: that for the price to go up there must first be an accumulation; and for a distribution to go down.
The way or manner in which these processes develop should not be the determining factor. The level of open-mindedness required is very great. Some may even have their heads blown off, but this is the reality. Fortunately we often see classic structures but the continuous interaction between supply and demand means that these processes can develop in infinite ways, and we have to be prepared to see them as well.
Rather than thinking about labeling each and every price movement, let's focus on trying to identify according to the fingerprints we observe who is probably gaining market control based on the theory studied.2 Price & Volume In our way of conceiving the market analysis initially we do not value the possibility of not taking into account any of these two data, price and volume. But as you delve deeper into the ecosystem that surrounds the financial world, you begin to see some pitfalls. Without going too far, I have to say that in my view the price data are certainly more relevant than the volume data. And I will now reason out this statement on the basis of two elements.
On the one hand, the intraday volume that we can analyse on any asset can be very misleading depending on the time of the session. For example, at the opening of the S&P500 US session in its local time (ETH), we will always see a large volume, much larger than that seen prior to that opening during the regular time (RTH). And of course, all of the previous analysis will be somewhat biased. As we can see from the ES chart (SP500 future), the highest volatility and therefore price shift occurs during the American session, with the lack of participation during regular trading hours being very clear.
It wouldn't make much sense to analyze the overall price and volume action as it could lead to confusion. It is not that during regular hours we have identified a movement with lack of interest (low volume); but that low volume is due to an absence of traders at that time. The same would happen with other moments of the session, such as at the mid-day stop or just before the start of the day's final stretch, when there is also a significant increase in volume. Once we know this, we have two ways to solve this situation: If we want to continue operating in intraday time frames we must necessarily analyze price and volume in comparative terms; on the one hand that observed during local time and on the other hand that seen during regular hours.