The Wyckoff Method

1-Share your understanding on "Composite Man" and the fundamental laws. What's your point of view on them?

The "Composite Man" is the idea of representing a market as one person or entity, with this in mind we have to follow the path this "Man" takes in his investments. This "Composite Man" stands behind everything, like a shadow and manipulates the market, if you understand how this Composite Man operates, your advantage is great and your investments will most probably give good results. If on the other hand you fail to understand the workings of this "Composite Man" you will most probably work at a disadvantage with your investments.

What are the Fundamental Laws?

Price direction is determined by supply and demand

This is obvious, price is always determined by supply and demand, if there is more demand than supply prices will go up, if there is more supply than demand prices will go down. So we take advantage of this by buying in this case a crypto currency at low prices and then make it seem that there is a huge demand for this coin, once enough people start buying it, its price goes up, and what we accumulated gives us a very good return.

Cause and Effect

Again this is a supply and demand operation, it comes in two phases, accumulation and distribution. During accumulation we reach a point where demand tops supply and we see prices go up, and then comes the moment of distribution when holders divest themselves of this asset and the sell off leads to a decrease in price.

Law of effort vs Result

The more effort we put in to something the better results we expect, but in trading we can see a trend happening if the efforts made are not rewarded with good results. Like a lot of people invest in an asset, or a group of people invest big amounts of money in it and the price remains about the same or gains are insignificant, this is a good moment to get out because probably we will se that this asset will follow a downward trend. Or if on the other hand investment is small yet the price rises a lot we can expect this asset to be giving good returns in the near future.

2-Share a chart of any cryptocurrency of your choice (BTC or ETH won't be taken into account for this work) and analyze it by applying this method. Show clearly the different phases, how the volume changes and give detail of what you're seeing.

We can see a sideways trennd in March which was the Accumulation phase, after this we can see the price going up until it reaches an appex and starts coming down and we can see it going sideways again which is the distribution phase, we can even see a small bump with price going up for a few days until the inevitable downtrennd which we have been going through with Steem the last few weeks. On the other hand and following our laws of supply and demand I am seeing that we should have a breaking out in the near future as I think we are now entering an accumulation phase.

Conclusions

Like all Technical Analysis theories and strategies, you can see the logic that is followed, but with this Wyckoff Method we can actually see that markets are manipulated and that is the idea behind this strategy, if you follow the Composite Man that manipulates the market you will most probably do very well with your trading.

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