| MAR 1987
Wyckoff in action (part 2) by David Weis
Wyckoff in action (part 2) by David Weis In Part 1 of this article (S&C, June 1986), we recognized at point #12 (Figure 1) that large operators were accumulating bonds prior to an upswing. The conservative point-and-figure count AB (Figure 2) indicated potential for a move to 63-28. Long positions were recommended for the opening on April 8 with protective sell stops placed beneath the low at #10. The following discussion dissects the volume/price behavior during the subsequent mark-up and distribution phase that evolved over a 13-day period. April 8. June bonds open at 61-11 before moving to a low of 61-09. Based on an entry price of 61-11, we are risking 7/32nds for a gain of at least 2 1/2 points. After opening lower, prices steadily move higher throughout the session. It is noteworthy to mention here that tick volume has a U-shaped pattern. Tick volume is heavy in the opening 45 minutes and tapers off toward mid-day. From this lull in activity, trading increases until the final rush of volume in the closing hour.
by David Weis
Technical Analysis of STOCKS & COMMODITIES
The Traders’ Magazine since 1982
has had over 1,226,237 subscribers from 174 different countries.
37,000 Page Traders’ Archive for $89.99
To continue reading, sign-up for trial access to Traders.com and the S&C Archive — 37,000 pages of trading ideas!
After verifying your email address, you will have limited access to the S&C Archive, as well as access to a Digital Edition of S&C, and access to Traders.com Advantage and Working Money for 30 days.
Not a subscriber to Technical Analysis of
STOCKS & COMMODITIES magazine?
Click
here to subscribe, or request
a trial subscription.
Log-in now to view articles from the S&C Archive.
Your Subscriber ID is located at the top of your magazine label, highlighted here in red.
Your last name can be found on the second line, highlighted here in blue.
*If you have a company name on the label, that can also be used. It will appear below your name on the label.
If you do not have a Subscriber ID on your label, you can find it on your statement or renewal form.
For help locating your Subscriber ID number, please call us at 1-800-832-4642 or send an email to Survey@Traders.com. If sending an email, please include your name and mailing address.