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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

Introduction to Wyckoff

Learn the foundation of Wyckoff Theory - understanding market structure through the lens of supply, demand, and the Composite Man.

📚 Foundation

Accumulation Phase

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

Markup Phase

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

Distribution Phase

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

Markdown Phase

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

Selling Climax (SC)

A climactic event marking potential end of a downtrend. Panic selling creates the foundation for accumulation.

Automatic Reaction (AR)

The natural bounce after a Selling Climax. Establishes the trading range top.

Secondary Test (ST)

A retest of the SC area on reduced volume. Confirms supply absorption.

Buying Climax (BC)

A climactic event marking potential end of an uptrend. High volume exhaustion at the top.

AR in Distribution

The natural drop after a Buying Climax. Establishes the distribution range bottom.

ST in Distribution

A retest of the BC area on reduced volume. Confirms demand weakness.

Spring

A false breakdown below support that traps sellers. One of the most powerful bullish signals in Wyckoff.

Upthrust

A false breakout above resistance that traps buyers. The bearish equivalent of the Spring.

Last Point of Support (LPS)

The final pullback in accumulation before markup begins. Offers low-risk entry opportunities.

Last Point of Supply (LPSY)

The final rally in distribution before markdown begins. Offers low-risk short entry opportunities.

Advanced Concepts

Cause & Effect (Volume Logic)

Understanding how volume accumulation in ranges creates the 'cause' for subsequent price moves (effect).

Advanced Concepts

Springs & Upthrusts Explained

Deep dive into springs and upthrusts - volume requirements, confirmation, and trading execution.

Advanced Concepts

ABCDE Swing Structure

Master the internal anatomy of trading ranges - understanding the 5 key swings that define Accumulation and Distribution.

Advanced Concepts

Wyckoff + Supply & Demand

Mapping Wyckoff concepts to Supply & Demand zones for precise trade execution.

Practical Trading

How to Trade Wyckoff

Practical guide to trading Wyckoff setups - entries, stops, targets, and common mistakes to avoid.

Market Phases

Accumulation 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

Accumulation Phase Chart

Overview

Accumulation occurs after a downtrend when prices have fallen to levels that attract institutional buying. During this phase, Smart Money quietly builds positions while the public is still fearful and selling. The market moves sideways, often in a defined range, as supply is absorbed.

Key Characteristics

Occurs after a significant downtrend
Smart Money quietly buys from weak hands
Price moves sideways in a defined range
Retail interest is low—most are still bearish
Media sentiment is typically negative

Volume Behavior in Accumulation

High volume spikes near the lows (support) as institutions absorb selling
Volume increases without significant price progress downward
Selling pressure is gradually absorbed
Lower volume on tests of resistance
Volume pattern shows effort without downside result

Trader Insight

This is a preparation phase, not a breakout phase
Patience is more valuable than prediction
Don't try to catch the exact bottom—wait for confirmation
Watch for decreasing selling volume on tests of lows
The breakout will come when accumulation is complete

Warning

Accumulation can take weeks or months. Rushing entries before confirmation leads to frustration and losses.

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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