Our Strategy is based on how Wyckoff views the market, in our opinion this is the best way of reading and analysing the market. Wyckoff’s break down of the market holds true to any trading style.
Wyckoff’s Law: Supply and Demand |Cause and Effect |Effort and Result
The Wyckoff method reflected Wyckoff’s repertoire of trading and investment philosophies that supported the economic tenets of supply and demand were reflected in the movement behaviours of price and volume; which in turn, could be used to project future movements. The price movements were regarded as significant based upon daily, weekly, monthly and annual comparisons. The 3 Laws of the Wyckoff Method consist of (1) the Law of Supply and Demand; (2) the Law of Effort versus Results; and (3) the Law of Cause and Effect, and are summarized below.
Market behaviour was expected to fluctuate according to basic patterns that continuously became modified. Based upon the Law of Supply and Demand, scarcity increases the price and supply will increase to meet demand. The Law of Effort versus Results and the Law of Cause and Effect support that the fluctuations in the market price action are proportional, as in each action produces an equal or proportionate reaction. In combination, the Law of Supply and Demand and the Law of Effort versus Result produce powerful revelations of the modern bull market.