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Price Action Methodology

Wyckoff Theory

Master the art of reading institutional footprints through Wyckoff methodology. Understand accumulation, distribution, and trade with smart money.

4
Market Phases
10
Wyckoff Events
Multiple
Trading Setups
Key
Volume Logic
Market Phases

Accumulation Phase

The phase where smart money quietly builds positions before a markup. Learn to identify when institutions are accumulating.

📈 Bullish
Market Phases

Markup Phase

The trending phase where price moves up after accumulation. Understand the characteristics of a healthy markup.

📈 Bullish
Market Phases

Distribution Phase

The phase where smart money distributes their positions to retail traders. Learn the warning signs of distribution.

📉 Bearish
Market Phases

Markdown Phase

The downtrend phase following distribution. Understand how markdown unfolds and what to expect.

📉 Bearish
Market Phases

Distribution Phase

Understanding the Wyckoff Market Cycle

Wyckoff divides the market into 4 main phases that repeat across all timeframes. These phases are not random—they reflect institutional intent. By understanding where the market currently is, you can stop predicting blindly and start reading what Smart Money is actually doing.

Every trend begins and ends with a purposeInstitutions follow a repeatable cycleThese phases apply to all markets and timeframesRecognition > Prediction

Distribution Phase Chart

DISTRIBUTION PHASE Smart Money Sells to Public Buyers After Uptrend PRIOR UPTREND DISTRIBUTION RANGE (Topping Pattern) → MARKDOWN RESISTANCE (Selling Pressure) SUPPORT VOLUME Rising Volume High Volume at Highs (Supply Entering) Breakdown Volume

Overview

Distribution occurs after an uptrend when Smart Money begins selling their positions to late-arriving public buyers. Price moves sideways again, often in a range similar to accumulation, but this time supply is being distributed rather than absorbed.

Key Characteristics

  • Occurs after a significant uptrend
  • Smart Money sells to retail buyers
  • Price moves sideways—forms a topping pattern
  • Public interest and media hype are at peak
  • Rallies become labored and fail to make new highs

Volume Behavior in Distribution

  • High volume appears at price highs (supply entering)
  • Price struggles to advance despite volume
  • Up-moves lack follow-through and show weak closes
  • Heavy volume on down-moves within the range
  • Volume pattern shows effort without upside result

Trader Insight

  • Strength becomes weakness—what looks strong is actually distribution
  • Late buyers get trapped at the highs
  • Don't chase new highs on weak volume
  • Watch for bearish divergences in volume
  • Prepare for markdown—don't become a bag holder

Warning

Distribution is where retail traders lose the most money. They buy into media hype at exactly the wrong time.

Important Educational Notes

  • Phases can overlap—there's no clean line between them
  • Not every phase is immediately obvious—confirmation takes time
  • Confirmation comes from both volume AND structure
  • Different timeframes may show different phases simultaneously
  • Practice identifying phases in historical charts before trading live

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