Wyckoff Power Charting

Homework Assignment

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ChartCon 2018 is fast approaching and preparations are being made. Let’s take a few minutes during this busy week to study some charts. For contrast we will compare the NASDAQ Composite, which is one of the leadership indexes, to the Dow Jones Industrials, which is a laggard. 

A big thank you to fellow Wyckoffian, Roman Bogomazov, for his collaboration in the preparation of these charts for original publication in the Wyckoff Market Discussion sessions (click here for more information).


                             (click on chart for active version)

The NASDAQ Composite ($COMPQ) rallied in late June (end of the quarter) into three forms of Resistance. Also, there was an Upthrust of the Buying Climax (BCLX) which is labeled a Major Sign of Strength. In July the Major SoS was tested and the index is at that level now. Consider the scenarios that are possible here, both bullish and bearish. What is the price and volume action that would signal each?

                            (click on chart for active version)

Recently the Dow Jones Industrials ($INDU) has come to life after forming a Last Point of Support (LPS). The $INDU is attempting to hold just above Resistance, after a constructive rally, and is labeled a Back Up (BU). In both of the above examples, study the multi-year trend channel that has set the stride of the bull trend. Consider three scenarios for the $INDU at this juncture. 

See you at ChartCon 2018,

Bruce
@rdwyckoff

Announcements:

Best of Wyckoff Online Conference 
BOW 2018: Judging the Market by its Own Action. September 1, 2018 – watch live or on-demand. This is the Wyckoff event of the year. CLICK HERE to learn more about this Epic Conference and to register now.

 

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Bruce Fraser
About the author: , an industry-leading "Wyckoffian", began teaching graduate-level courses at Golden Gate University (GGU) in 1987. Working closely with the late Dr. Henry "Hank" Pruden, Bruce developed curriculum for and taught many courses in GGU's Technical Market Analysis Graduate Certificate Program, including Technical Analysis of Securities, Business Cycle Analysis and the Wyckoff Method. For nearly three decades, he co-taught Wyckoff Method courses with Dr. Pruden, and has also used this approach to the markets as the foundation of his own trading for over 35 years. Learn More
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