Forex and Stocks Trading: Baby Bird Capital

 Accumulation occurs after a prolonged downtrend, which is also known as the Mark down phase. The accumulation and the distribution phases are range bound trading periods where there is no clear direction of price movement. The distribution phase occurs after an uptrend which is also known as the Mark up phase. You may find this article helpful:  Price action analysis using the Wyckoff method Accumulation Schematic There are five phases to the Wyckoff accumulation schematic. Phase A  Phase A starts with price moving in a downtrend and volume steadily increasing. Buyers begin to enter the market  and are trying to change the direction of the market resulting in preliminary support. However, the buying power is not enough to stop the downward movement of price till it reaches a selling climax. A selling climax is a sharp decrease in the prices of stocks or derivatives for a very short period of time alongside increased volume. At this stage, price has been oversold and...

Introduction Richard D. Wyckoff was a very famous stock market trader. He is considered one of the five titans of technical analysis along with Dow, Gann, Elliott and Merrill. Wyckoff proposed a method to help traders understand price movements in markets. This method is called the Wyckoff method. Wycoff advised traders to try to understand the market and play the market game as the Composite man. The fluctuations in the market in all the various stocks should be studied as if they were the result of one man`s operations. Let us call him the composite man, who, in theory, sits behind the scenes and manipulates the stocks to your disadvantage if you do not understand the game as he plays it; and to your great profit if you do understand it    ~R.D Wyckoff   A composite man is a highly skilled and better informed investor who has the ability to shape the market and control the price. He carefully plans, executes and concludes his campaigns. His aim is to gather as...