WYCKOFF TRADING PRACTICUM COURSE

11.19.2019

Next WTPC webinar sessions in November:

November 26 at 3:00-5:30pm PST

Homework submission: All homework assignments should be submitted in ONE file per person in .pptx, .pdf or .doc formats.
Please include your first name and the first letter of your last name in the homework file name, e.g., “Thomas B_WTC
Homework 1”. All assignments should be submitted to wyckoffassociates@gmail.com with the email title WTC Fall2019-
Homework# .
Students who would like to participate in discussions should have a working headset with a built-in microphone.

Announcements
November Special: Momentum and Volume and Price Structures; 11/21 at 3 pm PST

Session 11 1. Bias Game

SELECTION 2. Anatomy of a Trade (TTD)
3. Q&A
4. Market Update
5. Exercise #7

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Disclaimer
This presentation (including the lecture, slides and discussion) is for informational and educational purposes only; it should not be
construed as investment advice of any kind. Roman Bogomazov (Presenter) is not a registered investment advisor or broker-dealer, and
does not purport to recommend or suggest any securities to buy or sell. Presenter assumes no responsibility or liability for your trading
and investment results. You understand and acknowledge that there is a very high degree of risk of financial loss involved in trading
securities and that you alone are responsible for your own trading and investment decisions and results.

It should not be assumed that the methods, techniques, or indicators presented will be profitable or that they will not result in losses. Past
results of any individual trader or trading system published by Presenter are not indicative of future returns by that trader or system, and
are not indicative of future returns which will be realized by you. In addition, the indicators, strategies, articles and all other features of
Presenter's products are provided for informational and educational purposes only and, again, should not be construed as investment
advice. Accordingly, you should not rely solely on the Presenter’s information in making any investment. Rather, you should use the
Presenter’s information only as a starting point for doing additional independent research in order to allow you to form your own opinion
regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any
investment.

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE
RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND DO NOT INCLUDE BROKERAGE AND OTHER FEES, OR SLIPPAGE.
ALSO, IN SIMULATED PERFORMANCE RESULTS NO TRADES HAVE ACTUALLY BEEN EXECUTED, AND THEREFORE THE RESULTS MAY HAVE
UNDER- OR OVER-COMPENSATED FOR THE IMPACTS OF A VARIETY OF MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED
TRADING PROGRAMS, IN GENERAL, CAN ALSO BE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT
ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.

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 WYCKOFF TRADING PRACTICUM COURSE

BIAS GAME

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 BIAS GAME #25: ACCUMULATION OR DISTRIBUTION?
Vote on @wyckoffanalysis

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 Session 9 BIAS Session 10 BIAS

I was split on how I should define the rally in phase B on the last BIAS game. Weak hands rally Vs EoM? What tricked me was the big volume on the way down and higher low.
After the volume started going down to average, we then had 2 spikes in volume. First one gave the best upbar than any previous bar in the range. On the second one we
had even higher volume on a small gap down. Price made a dip, but recovered and even closed positively daily. Although close to close was negative.

These 2 charts also had a lot of similarities, I guess that was the point ;)

At the time, this confirmed the bullish BIAS for me. As a retest was expected due to the volume in phase B. Test came on high volume but made a higher low. And only had temporarily commitment
below the support. In hindsight it’s easy to see that the move to the downside in BIAS 10 is much more aggressive then the move in BIAS 9.

So my question is then: If there is an EoM to the upside or downside, is there certain price structural things we don’t want to see after such a move?? If there is an EoM to the downside, would it be
reasonable to expect that the price should not be able to recover to relevant resistance area after such move? And would it be reasonable to expect the same on a EoM to the upside. Price should not
be able to go back to previous support?? There could of course be exceptions, but is this a reasonable thought?

Ronny

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 I Voted : Accumulation Wrong – saw Twitter solution BIAS GAME #25: ACCUMULATION OR DISTRIBUTION?
So I have 3 Questions shown on chart Vote on @wyckoffanalysis
to understand where my thinking turned wrong
Arvind

A B C
HH

3. Question E>>
Compared to R<
earlier analogue
So- Bullish ?
HL
CO Buying zone
HL
Selling Exhaustion
SO in B
Demand
1.Question : Where did I go wrong in Identifying Bias from L – R,
picks up
1. Switch to Down Bias on 10/01 and
2. Switch back to Up Bias on 11/01 and finally
3. The Rational for continuation of up bias at the Higher Low points in Feb/Mar
UPTREND TR – Assume RA Down Bias UP Bias UP Bias To HL To HL
So Up Bias Remains CHoCH CHoCH Continues

2. Question
Highest Volume – Yes ?
So Why Is This Not CO Buying ?
 MU (DAILY) DISTRIBUTION
Micron Technology, Inc.
WYCKOFF STORY #25
Upthrust after Distribution (UTAD) + Test
#1 The relatively low Supply
Secondary Test (ST)
Buying Climax (BC) emerging during the Change of
Last Point of Character (CHoCH) suggests
Supply (LPSY) consolidation with a potentially
bullish bias to be confirmed or to fail.
Last Point of
Weak Hands Change of
Character Supply (LPSY)
Value Zone #2 Increased Supply in Phase B
(CHoCH)
produces a Shakeout-type reaction
Automatic leading to a lower low (ST as a
Reaction (AR) mSOW). The synchronicity between
downward Effort and Result in this
Secondary Test as a minor Sign sharp, high-volume break below
of Weakness (ST as mSOW) Major Sign of support changes our bias to bearish.
Weakness (MSOW)
#3 The next rally occurs with
Phase |A| Phase |B| Phase |C| Phase |D| diminishing Demand; price commits
only briefly above resistance before
falling back into the trading range.
This behavior suggests an Upthrust
3. LOW-DEMAND 4. DEMAND FROM After Distribution (UTAD), which is
2. INCREASED RALLY CANNOT WEAK HANDS confirmed by a low-volume test and
1. LOW SUPPLY SUPPLY (EFFORT) SUSTAIN ATTRACTS MORE markedly increased Supply during the
PRODUCES PRODUCES A COMMITMENT INSTITUTIONAL next reaction. Our bearish bias leads
INITIAL CHOCH LARGER RESULT ABOVE RESISTANCE SELLING us to expect a Last Point of Supply
(LPSY).

#4 The rally into the LPSY on

SUPPLY SUPPLY SUPPLY increased up Effort brings price into
SUPPLY
the “Weak Hands Value Zone” (in
red). This price range attracts Weak
Hands to buy what they perceive as
short-term value; institutions sell into
the increased liquidity throughout
this zone (blue arrows). The bearish
bias is re-confirmed.
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 BIAS Game #25

BIAS Game #24

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 TJX (DAILY) Accumulation
TJX Cos., Inc.
WYCKOFF STORY #24

#1 Increased Supply on the

Change of Character (CHoCH)
Major Sign of Strength (MSOS) in conjunction with quick price
Phase |A| Phase |B| Phase |C| Phase |D| recovery off the lows of the
Automatic Reaction (AR) and
Minor Sign of ARVIND Secondary Test (ST) suggest a
Buying Climax (BC)
Secondary Tests (ST) Strength (mSOS) consolidation with a bullish
In discussing the bias game on 11/12/2019 Session 10, You made
bias.
Major Back Up
references and(MBU)
described Momentum for 3 different types of
chart patterns (Price ) followed by#2
Momentum
Huge EffortSignature
(volume) (volume
as
?) and finally Momentum Players. price
Around 11 minutes into
descends to and belowyour
Change of presentation when you start your support
L-R discussion of the
in Phase |B|Uptrend
produces
Character
(CHoCH) 1. Time: 11:00 – ‘Look at howlittle thesedownward
two rallies Result.
(Rally
Subsequent tests
Momentum) are behaving . There is a lot of Momentum leading to
Minor Back Up (mBU)
there is a lot of aggression’.the Spring in Phase
1. Question: Did you|C|mean
Automatic
Reaction (AR)
Secondary
Last Point of Support (LPS) from the Rally low to the rally high? 2. Questionof
indicate absorption Supply.
And this
Test (ST) The bias remains
is different from the Step Momentum SM1 to SM5 which is
bullish.
from the High of one rally to the high of the next rally
SPRING trading range #3 The Minor Sign of Strength
within a Swing – Correct ?
(mSOS) rally commits above
2. Time: 11:08 – ‘And then the last two, we have only
2. SUPPLY INCREASES 3. SUPPLY IS 4. INCREASED SUPPLY down-sloping resistance
momentum of the initial kickoff Bar’ (Bar Momentum –
1. INSTITUTIONS AND THEN DECLINES AS EXHAUSTED AND PRODUCES ONLY A despite diminishing volume.
this should be the same as ROC(1) correct ?)
QUICKLY ABSORB PRICE MAKES LITTLE RALLY SHOWS EASE OF MODEST DOWNWARD This suggests Ease of
DOWNWARD PROGRESS 3. Time: 18:10 – ‘We don’t see a significant momentum
EMERGING SUPPLY MOVEMENT (EoM) RESULT Movement (EoM) upwards,
buying on the way up’ (Swing Momentum) and that’s why
strengthening our bullish
it looks like a weak rally. Question: I actually see a lot of
conviction.
Momentum Bars, at least 5 – so am I correct in assuming
that – even with many momentum bars in a rally, the rally
#4 The reaction into a Minor
itself may not be high momentum Back Up ? (mBU) shows
4. Time: 18:30 –‘If there is something
increased missing
downinEffort,
this picture
but an
it is the momentum signature that we usually
inconsequential downward have in
phase D’ (Question : Now you are talking
Result. about volume
This reveals the –
right ? What is this volume existence
momentum Signature?)
of Demand and
5. Time: 19:30 – ‘No Momentum Players’
confirms the (sobullish
Value Buyers
bias. do
not have Momentum Signature ? only Momentum Players
www.WyckoffAnalytics.com ?)-
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 BIAS GAME: ACCUMULATION OR DISTRIBUTION?
Vote on @wyckoffanalysis

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 WYCKOFF TRADING PRACTICUM COURSE

MARKET CHARTS

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 WYCKOFF TRADING PRACTICUM COURSE
Q&A

SEAN

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 WYCKOFF TRADING PRACTICUM COURSE

ANATOMY OF A TRADE

TTD (Trade Desk Inc.)

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COREY
 WYCKOFF TRADING PRACTICUM COURSE

BIAS GAME

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Task: Define the directional bias and possible character of the next swing move
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Observations:
-
-
-
-
-
Deductions:
-
-
-

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Solution
Re-Distribution:
AR UT LPSY in Ph |C|
Supply is exhausted at Intermediate SC in |A|; increased Supply in |B|
pushes price below support for a SOW; Institutional Capitulation in |D|
Bias: Long-term and short-term Bearish
SC ST Result > LPSY
Phase |A| Phase |B| |C| Phase |D|
SOW
in Ph |D|
AR
Result > LPSY
Result >
But LH Point of analysis
Result >
Result < Result < Result <
or =
Result >
ST
Intermediate SC
Change of SOW
Character Supply > Result >
(CHoCH)

Institutional Major
Capitulation Short-term SOW
Supply > Demand Supply > Climactic
Breakout Supply < Supply Demand > Effort >
Supply

Institutional
Capitulation

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Task: Define the directional bias and possible character of the next swing move
1 2 3 4 5 6

Observations:
-
-
-
-
-
Deductions:
-
-
-

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Solution

Accumulation/Reaccumulation: Stepping Stone

Supply is decreasing and reactions contract Reaccumulation
Bias: Long-term and short-term Bullish Trading Range #2
Major
SOS

Phase |A| Phase |B| |C| Phase |D| Stepping Stone Reaccumulation
Trading Range #1 (BU)
ST as UA
BC Result > BU

LPS
AR
ST as a Minor
SOW in Ph |B| Spring #3
Local
Supply >

Supply < Supply <

Supply <
Demand >
Institutional Accumulation Local Demand >

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