Wyckoff Method
Richard Wyckoff accumulation/distribution method. Identifying composite operator intent through volume, price spread, and the four market phases.
4 Strategy Templates
The Wyckoff Method is a price-and-volume framework developed by Richard Wyckoff in the early 20th century, structured around four market phases: Accumulation (institutions build long positions), Markup (upward trend phase), Distribution (institutions unload positions), and Markdown (downward trend phase). Within Accumulation and Distribution, specific canonical events unfold in reliable sequence. Preliminary Support, Selling Climax, Automatic Rally, Secondary Test, Spring, Sign of Strength, Last Point of Support. giving Wyckoff practitioners a structural roadmap through ranging markets that looks random to outsiders.
The strategies in this category trade the highest-probability Wyckoff events. Wyckoff Spring trades the terminal shakeout of an accumulation range. A false break below support designed to trap shorts before markup begins. Wyckoff Phase C Test trades the secondary test that follows the Spring. A lower-volume retest of the Spring low that holds, confirming the accumulation is complete. Wyckoff Sign of Strength trades the decisive break above the accumulation range with expanded volume, confirming trend onset. Wyckoff Upthrust trades the distribution mirror. A false breakout above a distribution range before markdown begins. Wyckoff requires higher-timeframe patience. Most practitioners work on Daily and Weekly charts where accumulation and distribution phases take weeks to months to unfold. The reward is understanding price action at the institutional-structure level rather than reacting to individual candles.
The Spring occurs when price dips below accumulation range support to sweep stops, then rapidly reverses back inside. This is the smart money shakeout.
The Upthrust is the distribution equivalent of the Spring. Price spikes above resistance to trap buyers, then reverses sharply as smart money distributes.
Phase C of Wyckoff accumulation features a 'test'. Price returns to the Spring low on decreasing volume, confirming supply exhaustion. This is the lowest-risk long entry in the entire accumulation str...
Sign of Strength (SOS): after accumulation completes, price advances with wide range and expanding volume. The first clear evidence institutional buying has overwhelmed supply. Enter on the pullback (...