Wyckoff Power Charting

Bruce Fraser
About the author: , an industry-leading "Wyckoffian", began teaching graduate-level courses at Golden Gate University (GGU) in 1987. Working closely with the late Dr. Henry "Hank" Pruden, Bruce developed curriculum for and taught many courses in GGU's Technical Market Analysis Graduate Certificate Program, including Technical Analysis of Securities, Business Cycle Analysis and the Wyckoff Method. For nearly three decades, he co-taught Wyckoff Method courses with Dr. Pruden, and has also used this approach to the markets as the foundation of his own trading for over 35 years. Learn More

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Wyckoff Power Charting

Solar Stocks Go Dark

by Bruce Fraser

Since mid-May the renewable energy stocks have tumbled. This may have come as an unexpected surprise to many. Let’s do a mini-blog case study of the Dow Jones Renewable Energy Equipment Index ($DWCREE) to determine if there was advance warning of trouble brewing. As Wyckoffians we are really in the dark here as volume is not available. To shed some light on this problem, look at two actively traded renewable energy ETFs: TAN and ICLN. They have a family resemblance to $DWCREE (with volume) for study purposes.               Read More 

Wyckoff Power Charting

Tale of the Tape

by Bruce Fraser

As Wyckoffians we often generate a hypothesis regarding the forces that propel stocks and industry groups higher (or lower). Homebuilders enjoyed a major uptrend in 2016-17.  In this case study from 2016; interest rates were near historically low levels, thus we could conclude that home purchases would be stimulated. And homebuilding stocks should rally. The Wyckoff Method requires that such a theory be confirmed by market conditions. It is very important that the action of the market itself provide the evidence of the validity of the theory. In other words the 'Tale of the Read More 

Wyckoff Power Charting

BankRoll

by Bruce Fraser

Bank stocks are telling an interesting tale. As Wyckoffians we interpret the story the market is telling through the action of the tape. Banks are at the hub of the wheel of the economy. These financial institutions continually inject or remove liquidity from the economy through their operations. It has been said that money flow is the grease that lubricates the economic machinery. When the lubrication of money is being injected into the economy, it keeps the machinery running smoothly.  When banks are telling a tale on the tape it often has consequences for the Read More 

Wyckoff Power Charting

Ship in a Bottle

by Bruce Fraser

A model ship in a bottle reminds me of the intricate detail, on a minature scale, available with the Wyckoff Method. Wyckoff analysis scales up, into very large timeframes, and down into the shortest of timeframes. Those who study and trade on an intra-day basis should consider adding these Wyckoff tools for analyzing smaller timeframes.  Very large time periods are ideal for campaign trading very long term trends. While intra-day charts are best for short term and swing trading. As a normal practice I keep and count intra-day index Point and Figure charts. This helps keep me in Read More 

Wyckoff Power Charting

Two Way Markets

by Bruce Fraser

Since 2016 the broad stock market has been in a robust uptrend. Corporations have enjoyed an environment of stable and low interest rates with moderate rates of inflation. Such a backdrop of business conditions allows companies to efficiently manage their costs and grow earnings. Investors are willing to pay higher prices for stable and steadily rising earnings and sales.  One of the biggest cost inputs for corporations is energy costs. The price of energy permeates every aspect of the cost structure. When energy prices are stable or falling macro business conditions benefit Read More 

Wyckoff Power Charting

Richard W. Arms Jr., Wyckoffian

by Bruce Fraser

Richard (Dick) Arms was a very creative market technician. He tackled one of the most elusive concepts in technical analysis: Volume. He became famous for creating the ‘ARMS Index’ (previously known as the TRIN Index). Dick created the ARMS Index in 1967 and published it in Barron’s Magazine. It caught on very quickly. Because it compared the ratio of advancing and declining stocks to the ratio of up volume to down volume, it was understood to be a sentiment gauge. Quote platforms began to include the ARMS (TRIN) Index on their systems (read more about the Arms Index by clicking here) Read More 

Wyckoff Power Charting

Does This Market Have Bad Breadth?

by Bruce Fraser

The percentage of stocks above their 200 day moving average (200dma) is a breadth indicator that I have depended on for many years. It theoretically oscillates from zero to 100 percent. During bull markets this oscillator spends most of its time between 40% and 85%. During bear markets between 60% and 5%.  We chartists pay close attention to the position of our stocks to the 200dma. I seek stocks that are above their rising 200dma. This is a useful definition of an uptrend in force. When the inevitable correction arrives, we will look for the stock price to return to the 200dma and Read More 

Wyckoff Power Charting

A Wyckoff Week

by Bruce Fraser

Two events happened this week that captured the attention of Wall Street. There was much buzz about both and they seem to be related. On Tuesday the stock market took a big tumble, with the Dow Jones Industrials falling 424 points. The next day the Ten-Year US Treasury Yield ($TNX) touched 3.035% (topping the 3% threshold for the first time since late 2013 when it reached 3.036%). Together, these noteworthy events solidified investor anxiety. We Wyckoffians might be as anxious as the next investor when such headline events pass by. But then we manage those emotions by turning to Read More 

Wyckoff Power Charting

Jumping the Creek. A Review.

by Bruce Fraser

Let’s review the concept of the ‘Creek’. This is a nuanced Wyckoff principle, but once understood, it becomes a very powerful trading edge. Support and Resistance zones are typically understood to exert their influence at linear price levels. Horizontal lines are drawn on charts to represent these important levels. Wyckoffians employ Support and Resistance zones in chart analysis with fervor. To read more on the concept of ‘Jumping the Creek’ click here. In the area of Accumulation and Reaccumulation the forces of Supply and Demand are competing with each other Read More 

Wyckoff Power Charting

Win the Race with Relative Strength

by Bruce Fraser

Fellow Wyckoffian, Dan, emailed a very good question this week. Dan is seeing the energy stocks move up and he observes that being a cyclical industry, these stocks typically move in unison. Dan is observing that some of the stocks are completing Accumulation phases while others are already in uptrends. He asks how to select the likely best performers among these stocks. The Wyckoff Method offers excellent techniques for identifying the best stocks in the best groups. Stockcharts.com has given us great tools for modernizing these concepts. In addition to trendline analysis and Point Read More 

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