THE PROTRAIT OF RICHARD D. WYCKOFF IMAGE SOURCE

HELLO EVERYONE,

I'm making this article solely the homework task given by our crypto-professor @fendit and it's listed below:

• SHARING MY UNDERSTANDING ON COMPOSITE MAN AND FUNDAMENTAL LAWS. WHAT'S MY VIEW?

• Share a chart of any crypto currencies trading charts apart from BTC AND ETHEREUM. ANALYSED IT WITH THE PRINCIPLE.

COMPOSITE MAN

Figuratively, It is a "man" believed that controls and decided how the market trends. Although not a human being rather the "scene" created because of the interaction between the two antagonising and familiar forces of demands and supply in the market. This interplay of this forces brings about the dynamism in the market and prices fluctuations. But this "scene" behaves like a human. That's why Wyckoff termed it a "composite man".

Composite man's actions are compellingly. As his actions dictate other investors what to do. And his activities changes the market trends and cycles. So when his actions are carefully examined, the price trends will be known and dictated. The investment opportunities will be open and profits will be maximized. His actions was postulated by Wyckoff as follows:

• His actions are well planned and executed carefully like buying/selling in large volumes of coins at wonderful prices and optimally.

• His actions attract more investors to buy other coins, he already accumulated at very large volumes when it's on low price by advertising his assets and creating a "broad market".

• His actions are predictable. It can be adjudged from the market trends and the behavior of the owners of those coins in the market.

• His actions can be used as a yardstick to notice the investment opportunities optimally and benefits therein.

Composite man's actions or "scene" created by him can be interpreted in these fours stages of the market cycles.

Image Source

• ACCUMULATION
• MARK-UP
• DISTRIBUTION
• MARK-DOWN

ACCUMULATION

This is the first stage in this market. At this usual initial stage, the market "moves" side-ways indicating that there's a much price change of the asset and trade volumes, the composite man buy in large volumes at this low price and keep them safe

MARK-UP PERIOD

This is the ascending order of the market Or otherwise known as the uptrends. Here the demands is higher than supply. The composite man makes investors thinks that the price will keep increasing and supply can't get scared, Which is a lie. Truly, the supply is scared And the price is ever increasing, the composite man will be create a scene where investors will be buying at the new high prices. Profits ensured. When it get to a limit. He will re-accumulated the coins again at the spring as indicated in the chart above.

DISTRIBUTION

Here, the composite man start to buy his coins to absorb all the buyers absolutely. Because of this action of his, the prices fluctuates horizontally just like the accumulation period.

MARK-DOWN PERIOD

This is the descending order of the market showing the increment in the number of suppliers and the large volume of the trading volumes supplied less than the demands. The price keep descending too. This happened as other investors decided to sell their wares thereby increasing the supply forces.

FUNDAMENTAL LAWS

These are laws that dictate the market trends and market cycles. As postulated by Wyckoff theory. They includes:

PRICE CHANGES GOVERNED BY FORCES OF DEMANDS AND SUPPLY.

The movement of prices on the chart Which can be simply refers to as price change are indicator of the interplay of the market influences of the demands and supply parameters. Whenever the demands are higher than the supply of any particular coin at a period of time, the price of such coins will increase and vice versa. It's rare to have a perfect market where the demands and supply can be perfect because demands and supply are inevitable and there's cases of scarcity too.

CAUSE AND EFFECT

When there's an action, there must a reaction of such action that happens so it is true the cause and effect in the market. For instance, a composite man acquired more coin in the accumulation period (i.e, cause), there will the attention of the investors to acquire such coins too(i.e, effect) although may not be at the same price. That means cause beget effect on the market .

EFFORT AND RESULTS.

A farmer did all the necessary actions to get his plants to grow (i.e, effort). It takes a great effort from him but in due time, He will harvest his produces (i.e, results) too. Results are rewards or pay back, one get because of his efforts. In steemit, Making a reasonable post takes time and great effort, the knowledge and the upvote generated from the post is the appropriate results too.

Share a chart of any crypto currencies trading charts apart from BTC AND ETHEREUM. ANALYSED IT WITH THE PRINCIPLE.

In the chart above, the trade between cake and BNB. There are four moments insolated.

• 1 ACCUMULATION period

Here, the COMPOSITE man acquired more coins.

• 2 Mark up period

Here, the price is high as other investors are buying that coin.

• 3 Distribution

It's at the peak and don't last long. Here, the composite man sold his coin to few buyers found there.

• 4 MARK-DOWN

Here, other investors are supplying their coins to sell. There are more supply than demands forcing the price to decline as noticed.

CONCLUSION

Richard D. Wyckoff is a person behind this principle. He works majorly on stock market and studies the price trends and market conditions for Price prediction and forecasting. His principle and approaches impress a lot of investors and traders. They are well documented on his numerous books on this field.