The topic that I will choose to discuss from the work given by the professor @fendit This week's assignment is about Wyckoff Method

The Wyckoff Method is a method that was successfully created and developed by someone named Richard Wyckoff in 1930. The Wyckoff Method is a set of principle methods and also a strategy that Richard Wyckoff developed from his own ideas, with the aim of targeting traders and investors. Wyckoff also tried to do further research on the method he had developed, and in the end he managed to make several other aspects in the development of this method, including the Composite Human Concept.

Composite Man is a new idea created by Wyckoff, which has the function of making it easier to understand price movements in trading, where in this idea of ​​Composite Man Wyckoff makes all operations under the control of one person. Composite Man only needs to monitor the market that is happening by looking at trades and then profit by trading by manipulating the market.

Wyckoff argues that, this composite human strategy can be done by reading the graphite and then making predictions for the next movement. Wyckoff made several phases to identify the current cycle or market movement, there are 4 phases given by Wyckoff, where we do and try to observe the behavior of Price, Volume and time movements, from that way we as composite humans can determine when good entry and also the right time out, Here are 4 phases that Wyckoff created :

1. Accumulation

The first is Accumulation, where in this Accumulation phase the composite human performs or tries to accumulate data on the trading market he is reviewing before other investors also enter the market. In this Phase we have to look at the Volatility and its volume, a composite human being must be careful in accumulating the assets under review, because we have to find the right entry and exit prices, so that when we enter and exit we do not exceed the review we want.

2. Uptrend

The second is the Uptrend Phase, where in this phase as a Composite Man it is the person who will make the price to soar upwards, where when a Composite Man saves or collects assets on a large scale, this will automatically invite other investors to invest. trade, so that when other investors come in and trade, this will help the price to soar upwards, but keep in mind which of these can be created. If, a demand for the asset is greater than the supply for the asset, then it will an Uptrend is created

3. Distribution

Distribution phase, where in this phase is when more and more investors trade in the same market, this will make a demand jump higher than an offer, this is a good side because it will push prices to soar upwards. Here as a Composite Man, we must be able to take action to be able to enter to sell the assets that we have, because if we are late in making decisions and price movements begin to appear to decline, automatically as a Composite Man this will be very disadvantaged, because we cannot receiving benefits.

4. Downtrend

So in the Downtrend Phase, this is the phase where when Composite Man sells very large assets, because the volume he has is very large, then this will affect the movement of the market, which if Composite Man sells assets with large volumes, generally speaking automatically the market will decline in price, when a Composite Man sells assets and then other investors see that there will be a deep decline, other investors try to sell their assets, and then automatically the result of all that is where the return Again, the supply of assets becomes large so that prices will continue to experience a downtrend.

I will try to give an example through an illustration of an image about the phases above, it can be seen in the image below :

So it can be seen in the picture above, where when a market is going through a Accumulation phase and then Composite Man buys assets with a large volume and is followed by other investors, the market will automatically occur Uptrend or rise to a price level which is quite high. the price, but before the price rebounds, there will be a thing called Re-accumulation first, then the price will be at its highest point. Furthermore, when entering Distribution, here a Composite man determines when he sells his assets, massively he sells his assets, then there is a Downtrend or a decline in the price of the asset, but before a drastic decline occurs, there will be where Redistribution first then the price will touch the lowest point. and back will repeat like that.