How to Trade Like The Banks - Part 2 *Wyckoff Accumulation Phase* — Transcript

Full transcript

1. 0:00as most of you guys know i hate periods
2. 0:02of consolidation they are boring and
3. 0:06when i see it i get out of my trade
4. 0:08immediately in this video we're gonna
5. 0:10take a deep dive into a period of
6. 0:13consolidation in regards to the y cough
7. 0:16method to show you exactly how those
8. 0:19movements happen why they happen and
9. 0:22when it's going to break out of that
10. 0:24period of consolidation
11. 0:26[Music]
12. 0:31welcome back to the channel everybody my
13. 0:33name's artie and this is the moving
14. 0:35average a show where we discuss
15. 0:36everything day trading to keep you
16. 0:38profitable on a consistent basis
17. 0:40monday's video did really well you guys
18. 0:42want to learn about smart money concepts
19. 0:45and the y cough method so this video
20. 0:48really breaks down phase a through phase
21. 0:51e
22. 0:52of this consolidation range so that you
23. 0:55can trade within that range and or trade
24. 0:58the break out for a long term position
25. 1:01now there is a lot of debate on the
26. 1:03internet about this and the why cough
27. 1:05method a lot of people say the wyckoff
28. 1:08method is only for periods of
29. 1:10accumulation those really really really
30. 1:13long periods and they say that it can
31. 1:15stay in that accumulation phase for two
32. 1:17to three weeks if not months sometimes
33. 1:21and i want to kind of tweak that a
34. 1:24little bit and say that it also works on
35. 1:26smaller time frames
36. 1:28just not identically to how it works on
37. 1:31larger time frames let's get into the
38. 1:33charts okay so we are looking right now
39. 1:36at bitcoin us dollar because it is the
40. 1:39newest most manipulated pile of
41. 1:43cryptocurrency that i've ever seen
42. 1:45and it displays perfect wyckoff method
43. 1:49trends on it so
44. 1:50i'm gonna look at this previous low and
45. 1:53consolidation period that we had before
46. 1:55the recent rally that it just took to 57
47. 1:58000 i'm gonna drop these lines of
48. 2:00support and resistance on the
49. 2:02accumulation phase as we're talking
50. 2:04through this but we have this big rally
51. 2:07push down right once it stops i want you
52. 2:11guys to draw a line right across the
53. 2:13bottom there i'm gonna label this in
54. 2:15just a second but that's the absolute
55. 2:18bottom of that move
56. 2:19then it came up to this point i want you
57. 2:22to draw another horizontal line across
58. 2:24this point this is now your range now
59. 2:28within
60. 2:29the y cough method
61. 2:31there are preliminary levels of support
62. 2:34during that first big move down for this
63. 2:37specific move there was two low points
64. 2:39here that were the preliminary support
65. 2:41levels ps then right here at its low
66. 2:45point we had the selling climax then
67. 2:48immediately after the selling climax you
68. 2:50have the automatic rally the ar then
69. 2:53after the automatic rally you have the
70. 2:56secondary test to test whether that move
71. 2:59wants to continue down
72. 3:01or whether we're going to go into a
73. 3:03period of consolidation so if you look
74. 3:05at this schematic right here you can see
75. 3:08those first preliminary levels of
76. 3:10support the selling climax the automatic
77. 3:14rally and the secondary test all in
78. 3:17phase a so right here we have phase a
79. 3:20once that's over we start phase b phase
80. 3:23b only has one part to it and that is an
81. 3:26additional secondary test in phase b
82. 3:29however there is a lot of
83. 3:33not concrete rules that are to be met
84. 3:36here every accumulation phase is shaped
85. 3:39differently there is a massive amount of
86. 3:41debate on how exactly it should look but
87. 3:44you need to take this not as concrete
88. 3:46rules but general structure a lot of
89. 3:49people say that in the secondary test
90. 3:51area it should break out of that support
91. 3:54and down and create these new levels of
92. 3:56support and resistance or ranges of
93. 3:59support and resistance within this
94. 4:01accumulation phase but sometimes it
95. 4:04might create narrower support and
96. 4:06resistance levels like it does here so
97. 4:09when that does happen i want you to look
98. 4:11at the peaks in this consolidation range
99. 4:14and this is the only evidence that you
100. 4:16have to go off of because you're not
101. 4:18seeing any of this area so i'm going to
102. 4:20put it right here at the bottom of the
103. 4:22wick of the secondary test in phase b
104. 4:26let that move up and then put my next
105. 4:29resistance line right here at the top of
106. 4:32that push after the secondary test these
107. 4:34are the ranges that you need to be
108. 4:36extremely cautious in and fearful of
109. 4:40like i mentioned in monday's video
110. 4:42during this accumulation phase
111. 4:45the composite man the the bad guy in
112. 4:48this situation
113. 4:50is slowly
114. 4:52buying up a ton of positions not enough
115. 4:55to really move the market in any
116. 4:57dramatic way but enough to slowly build
117. 5:00up his position to then push for that
118. 5:02extremely long-term uptrend so we're
119. 5:05gonna draw up another line right here
120. 5:07ending phase b and we're gonna start
121. 5:10breaking down phase c in phase c again
122. 5:13there's only one thing you need to keep
123. 5:14in mind right here and that is the lps
124. 5:17the last point of support so normally
125. 5:19the last point of support happens once
126. 5:22and then it starts going up but in this
127. 5:24scenario the last point of support
128. 5:26happened at the exact same time but also
129. 5:29wicking below the support line that the
130. 5:31previous secondary test made and in this
131. 5:34scenario as you're watching it play out
132. 5:36that last point of support is going to
133. 5:39conclude phase c now in phase d usually
134. 5:42you get those higher lows showing the
135. 5:45movement up creating higher last points
136. 5:49of support those lps's at this point we
137. 5:52start to break out of that previous
138. 5:55price range and right here this happens
139. 5:57very very quickly within a few hours and
140. 6:00if you can see we're on the one hour
141. 6:01chart right here right here we get two
142. 6:04things that happen almost at the same
143. 6:06time and that is the sos the sign of
144. 6:10strength breaking out of that little
145. 6:12range right there as well as the b u
146. 6:16slash lps which is the buy up or the
147. 6:20break up and the last point of support
148. 6:23right there so basically you break out
149. 6:25of that range and you're putting your
150. 6:27long position right here and your stop
151. 6:30loss below
152. 6:32that previous high now i know i advocate
153. 6:35one to two risk to reward ratio but when
154. 6:37you're looking at price manipulation on
155. 6:40such a grand scale with the composite
156. 6:42man and all of this theory behind it
157. 6:45you're looking for a break out of a
158. 6:46consolidation period to completely
159. 6:49change the trend and go on a really long
160. 6:51term bull run
161. 6:52in these scenarios one to fours one to
162. 6:56fives are completely suitable but what i
163. 6:58would suggest is after you get to a one
164. 7:01to three
165. 7:02take most of your profit off the table
166. 7:04and use a trailing stop loss using like
167. 7:07a 50 moving average hoping that it will
168. 7:10continue and you can ride that trend all
169. 7:12the way up until the next stage in the y
170. 7:16cough method which is going to be the
171. 7:19distribution phase that next area of
172. 7:22consolidation on the high end which i
173. 7:25will probably have to get into in
174. 7:26another video because this thing is
175. 7:28already like 20 minutes long now i'm
176. 7:30really anti making a one hour long video
177. 7:32on this so in the next video i'm gonna
178. 7:35explain the entire mark up phase that
179. 7:38entire phase that goes up to the
180. 7:40distribution phase covering this stuff
181. 7:42again on the high end for people looking
182. 7:44for short positions so what i'd like to
183. 7:46do now is show you this in replay mode
184. 7:49so that you can really see what's
185. 7:50happening during this entire movement we
186. 7:53start to come down in this nice push
187. 7:55down the selling pressure is hard
188. 7:58we create that preliminary support on
189. 8:01that first move we create another
190. 8:03preliminary support right there and then
191. 8:06at the very bottom we make the selling
192. 8:09climax that usually comes accompanied
193. 8:12with long wicks
194. 8:13but you really have to wait for the
195. 8:15selling climax to be over and then the
196. 8:18automatic rally to go up and that
197. 8:21usually happens right here because we're
198. 8:23creating these lower highs then once
199. 8:26that trend breaks that's that automatic
200. 8:29rally that break in the trend line so
201. 8:31now these are your two levels of support
202. 8:34and resistance and then it will come
203. 8:36down to create the secondary test that
204. 8:39double check whether the trend wants to
205. 8:41continue down or whether it's going to
206. 8:43fall into phase b c d and e once you see
207. 8:46that secondary test be made in phase b
208. 8:49then you need to start really marking up
209. 8:51okay we are in an area of consolidation
210. 8:54let's see what phase c looks like and
211. 8:56you're going to draw phase c you're
212. 8:58going to see where the last point of
213. 9:00support is going to be and you're going
214. 9:02to mark that up then you know once that
215. 9:04last point of support is made we are now
216. 9:07in phase d
217. 9:08at phase d is when you should start
218. 9:10looking for long positions setting up
219. 9:13your long right here at the top of that
220. 9:15range in phase d you're gonna start
221. 9:18seeing these higher lows being formed
222. 9:21this new trend being formed and at that
223. 9:24point you can start seeing these lower
224. 9:26points of support building up and then
225. 9:29breaking out of that range right here is
226. 9:31where you really need to start looking
227. 9:33for your long position entry and where
228. 9:35you want to put your stop loss because
229. 9:38like you see right here it happened very
230. 9:40quickly whereas on the traditional they
231. 9:42give you a little bit of seesaw effect
232. 9:44right here but on this one it happened
233. 9:46immediately you need to be ready knowing
234. 9:48that you've already gone through phase a
235. 9:51b c and you're in phase d looking for
236. 9:54your long position and phase e of course
237. 9:57is going to be the entire bull run that
238. 10:00you're having now with this one i had a
239. 10:02one to five risk to reward ratio but
240. 10:04obviously if i kept a trailing stop loss
241. 10:08so let's say that i did a trailing stop
242. 10:10loss after i got my one to five you use
243. 10:12a 50 or a 100 in this case the 100
244. 10:15worked a lot better so maybe you should
245. 10:17just do that and ignore my 50 statement
246. 10:19earlier trailing stop loss on the 100
247. 10:22and you can see it really kept that
248. 10:24upwards momentum
249. 10:25and at this point i mean if you would
250. 10:27have held that that's what a one to nine
251. 10:30once it broke out of that hundred it's
252. 10:33these long-term positions after big
253. 10:35areas of accumulation or consolidation
254. 10:38or however you wanna call them these are
255. 10:40big moves guys these are really
256. 10:42profitable i really appreciate the whole
257. 10:44wyckoff method and everything taught in
258. 10:47this it helps you realize like what's
259. 10:49going on in market manipulation
260. 10:51scenarios and it's not only on a higher
261. 10:53time frame where you're looking at four
262. 10:55hour or daily charts this is the
263. 10:57psychology of a retail trader versus a
264. 11:00bank the composite man you know you have
265. 11:03this panic selling and then the
266. 11:05composite man comes in and swoops it up
267. 11:07and they're just growing their position
268. 11:09here while they're really messing with
269. 11:10the retail trader gaining as much
270. 11:12position as they can before they push
271. 11:14this uh
272. 11:16nice move up all right i know that was a
273. 11:17really long video and i really hope that
274. 11:19this video helped you guys understand
275. 11:22periods of consolidation i get a lot of
276. 11:24questions on it how do i know if price
277. 11:25is consolidating you're looking at
278. 11:28seesaw up and down you're looking at
279. 11:30high volumes and you're looking for any
280. 11:32type of structure with the wyckoff
281. 11:34method like you'll start seeing these
282. 11:36phases what i suggest you guys do is
283. 11:38really go and back test and look at
284. 11:41markets and different things that you
285. 11:43trade and see
286. 11:45okay this is a period of accumulation
287. 11:47let's break it down so that when i do
288. 11:49see it live i know what i'm looking at
289. 11:52now if you guys haven't seen monday's
290. 11:53video you can check it out right here
291. 11:55put these two together and you will have
292. 11:57more knowledge on all of this that i'm
293. 12:00discussing and if you guys appreciate
294. 12:02this video you like the way that i teach
295. 12:03you want to see more videos like this
296. 12:05consider subscribing to the channel by
297. 12:07clicking this button right here thanks
298. 12:08so much for watching and we'll see you
299. 12:10in the next video