Buying Climax
A simple definition for the buying climax would be a climactic action that stops the previous uptrend. All previous attempts to stop the trend have failed ( psy -preliminary supply ) and the market delivered higher prices. This one is a stopping action and we can confirm this when it produces a ChoCh a Change of Character, an AR (automatic reaction), and ST (secondary tests) which concludes phase A. I will say this a lot so please get used to it :
A simple definition for the buying climax would be a climactic action that stops the previous uptrend. All previous attempts to stop the trend have failed ( psy -preliminary supply ) and the market delivered higher prices. This one is a stopping action and we can confirm this when it produces a ChoCh a Change of Character, an AR (automatic reaction), and ST (secondary tests) which concludes phase A. I will say this a lot so please get used to it :
The goal of phase A is to STOP the trend.
Phase A always stops the trend!
Phase A always stops the trend!
Please note that no matter what type of schematic we are looking at be it accumulation, re-accumulation, distribution, or redistribution phase A it is always the same. Starts with a stopping Action aka Buying Climax or Selling Climax. Followed by the Automatic Reaction ( or Response) and a Secondary Test which confirms the stopping action.
The weak hands become so excited and create such an opportunity and value for the CM/CO , in other words, a proposition "He" can't refuse, that "He" must act and "He" must act now, therefore the automatic response. The market will deliver lower prices looking for buyers and higher prices looking for sellers. In a true Zen fashion, I should just come, make that statement, snap my hand fan or clap, with one hand mind you, and then leave. But I feel since you are here you are looking for something more than that. But in the same Zen fashion, I would like to remember you of another saying. They say that when you don't know Zen, clouds are just clouds and mountains are mountains; when you start to learn zen and you start to realize certain things clouds are not just clouds anymore and mountains are not mountains, but in the end when you truly understand Zen clouds are clouds again and mountains are mountains :)
Indeed it does not need to be complicated. Hey, some of us enjoy the journey, right? Not all that wander are lost ,I get it... ;)
Back to Wyckoff schematics, they can take any shape or form. Many textbook schematics are unfolding every day in the marketplace but many will look very different than your textbook type 1 or type 2 schematic. I think the most important thing is understanding the events and the anatomy of the trading range (hint hint - Jim Forte - see the library in the group) rather than memorizing schematics or in other words a pattern. Wyckoff is not a pattern although most patterns are a Wyckoff schematic. If you can do that you will never have to memorize a schematic in your life. "If"... of course, you can, the question is will you do it?
To summarize, the BC is a climatic run into a wall, always a stopping action that stops the previous move. This stopping action is confirmed by the following events namely, AR and ST, and will be done with decreasing volume signature. The psy and bc in most cases will have the highest volume but should be noted that a trend doesn't necessarily have to end with a climax. An uptrend could end with a SOT (shortening of the thrust), where instead of a climax we can see exhausting of the demand, decreased spread and volume, and less progress on each rally until the supply emerges producing a change of character. More about volume analysis at a later date but as an exercise one could go and look in the charts for these types of climactic actions that resulted in a trading range. any time frame, any asset. Here are a few examples :
The weak hands become so excited and create such an opportunity and value for the CM/CO , in other words, a proposition "He" can't refuse, that "He" must act and "He" must act now, therefore the automatic response. The market will deliver lower prices looking for buyers and higher prices looking for sellers. In a true Zen fashion, I should just come, make that statement, snap my hand fan or clap, with one hand mind you, and then leave. But I feel since you are here you are looking for something more than that. But in the same Zen fashion, I would like to remember you of another saying. They say that when you don't know Zen, clouds are just clouds and mountains are mountains; when you start to learn zen and you start to realize certain things clouds are not just clouds anymore and mountains are not mountains, but in the end when you truly understand Zen clouds are clouds again and mountains are mountains :)
Indeed it does not need to be complicated. Hey, some of us enjoy the journey, right? Not all that wander are lost ,I get it... ;)
Back to Wyckoff schematics, they can take any shape or form. Many textbook schematics are unfolding every day in the marketplace but many will look very different than your textbook type 1 or type 2 schematic. I think the most important thing is understanding the events and the anatomy of the trading range (hint hint - Jim Forte - see the library in the group) rather than memorizing schematics or in other words a pattern. Wyckoff is not a pattern although most patterns are a Wyckoff schematic. If you can do that you will never have to memorize a schematic in your life. "If"... of course, you can, the question is will you do it?
To summarize, the BC is a climatic run into a wall, always a stopping action that stops the previous move. This stopping action is confirmed by the following events namely, AR and ST, and will be done with decreasing volume signature. The psy and bc in most cases will have the highest volume but should be noted that a trend doesn't necessarily have to end with a climax. An uptrend could end with a SOT (shortening of the thrust), where instead of a climax we can see exhausting of the demand, decreased spread and volume, and less progress on each rally until the supply emerges producing a change of character. More about volume analysis at a later date but as an exercise one could go and look in the charts for these types of climactic actions that resulted in a trading range. any time frame, any asset. Here are a few examples :
Naturally, the opposite is true for the SC (Selling Climax)
We can also note the unusually high volume at the end of the run; a stopping action will always have that x2-x3 or more volume compared to the previous local average volume. that type of candle with that type of signature will always result in a stopping action if not reversal. We'll talk a lot more volume later.
I think this is a good start for now; I think next We'll talk about the ChoCh which is part of phase A and continue with AR and ST. Would really like to know if you have something to add about the Buying Climax or Something that you look for, let me know in the comments.
I'm me, you're you, see you around.
I think this is a good start for now; I think next We'll talk about the ChoCh which is part of phase A and continue with AR and ST. Would really like to know if you have something to add about the Buying Climax or Something that you look for, let me know in the comments.
I'm me, you're you, see you around.
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