Observing the current chart, it appears to exhibit characteristics of a low-volume pressure test occurring at a significantly low point in the price action. There is potential for this condition to facilitate a relatively unhindered traversal through the existing price gap, with minimal counteractive forces. As customary in Wyckoff analysis, the most telling insight is typically derived from the session divider.
The session divider precisely indicates the moment when the day's lowest trading volume occurs. This can be interpreted as the market's invitation for us to identify an appropriate entry zone. In the context of Wyckoff's methodology, this phase could be categorized as "phase B." However, it is noteworthy that this apparent weakness in the chart often goes unacknowledged, as many Wyckoff practitioners tend to adhere rigidly to terminology and textbook definitions while overlooking the chart's inherent information.
Richard Wyckoff himself would likely disapprove of this approach, as his teachings emphasized the identification of pressure points and areas where pressure is lacking. The zone characterized by negative volume, precisely as observed at the session divider, holds the key to success in navigating the market.
To comprehend this phenomenon, one should focus on the volume at the session divider and the trough of the price wave, rather than fixating on its crest. The objective is to identify areas with the least resistance, not merely traditional "support and resistance" levels but the resistance generated by buy or sell pressure dynamics. This pattern is conspicuously evident on the chart itself.
In essence, it is prudent to temporarily set aside the conventional Wyckoff rulebook and leverage one's own visual acuity to discern this unmistakable and highly significant pattern readily apparent before us.
(Look at the volume where I placed the red lines on the Y-axis... THAT is the lowest volume of the day. It doesn't matter what time frame you use. This is an undeniable fact in the chart. You can use this to study and to eventually succeed. If you zoom in using the 5 or 15 min, it will amplify this).
The session divider precisely indicates the moment when the day's lowest trading volume occurs. This can be interpreted as the market's invitation for us to identify an appropriate entry zone. In the context of Wyckoff's methodology, this phase could be categorized as "phase B." However, it is noteworthy that this apparent weakness in the chart often goes unacknowledged, as many Wyckoff practitioners tend to adhere rigidly to terminology and textbook definitions while overlooking the chart's inherent information.
Richard Wyckoff himself would likely disapprove of this approach, as his teachings emphasized the identification of pressure points and areas where pressure is lacking. The zone characterized by negative volume, precisely as observed at the session divider, holds the key to success in navigating the market.
To comprehend this phenomenon, one should focus on the volume at the session divider and the trough of the price wave, rather than fixating on its crest. The objective is to identify areas with the least resistance, not merely traditional "support and resistance" levels but the resistance generated by buy or sell pressure dynamics. This pattern is conspicuously evident on the chart itself.
In essence, it is prudent to temporarily set aside the conventional Wyckoff rulebook and leverage one's own visual acuity to discern this unmistakable and highly significant pattern readily apparent before us.
(Look at the volume where I placed the red lines on the Y-axis... THAT is the lowest volume of the day. It doesn't matter what time frame you use. This is an undeniable fact in the chart. You can use this to study and to eventually succeed. If you zoom in using the 5 or 15 min, it will amplify this).