How to Trade Like The Banks - Wyckoff Method Explained in 8 minutes — Transcript

Full transcript

1. 0:00every day trader knows that the main
2. 0:03push of whatever market movement is
3. 0:05happening is due to banks and financial
4. 0:08institutions and big money the retail
5. 0:11trader cannot affect the market as the
6. 0:14big banks can a lot of you guys have
7. 0:16been requesting this video so i'm going
8. 0:18to try to do a extremely short video
9. 0:21explaining how banks trade and the
10. 0:24entire wyckoff method
11. 0:27[Music]
12. 0:32welcome back to the channel everybody my
13. 0:34name's artie and this is the moving
14. 0:35average a show where we discuss
15. 0:37everything day trading to keep you
16. 0:38profitable on a consistent basis okay
17. 0:41now if you are not a intermediate or
18. 0:43advanced trader please just click away
19. 0:45from this video this is extremely
20. 0:47advanced stuff and you need to learn the
21. 0:50basics before you get into this that's
22. 0:52why i've been waiting for over 100
23. 0:54videos to make this it's
24. 0:56it's not the easiest thing the wyckoff
25. 0:58principal or wyckoff method
26. 1:01um actually let's just get into the
27. 1:03charts and i'm going to show you what
28. 1:04i'm talking about so there are four main
29. 1:06parts of the y-cof method the first part
30. 1:09is the law of supply and demand when
31. 1:12demand is greater than the supply the
32. 1:14price will rise then when the supply is
33. 1:17greater than the demand the price will
34. 1:19fall and one of the tools that you can
35. 1:21use to identify this is volume bars so
36. 1:25for example in an area like this you can
37. 1:27see that the price was going flat yet
38. 1:30volume is massive same thing right here
39. 1:34price is flat yet volume is spiking i
40. 1:38will get into that a little bit later
41. 1:39the second part to the wyckoff method is
42. 1:41the law of cause and effect the two
43. 1:44examples put forth in the wyckoff method
44. 1:47is a period of accumulation moves into
45. 1:50an uptrend the cause and the effect and
46. 1:53a period of distribution moves into a
47. 1:56downtrend
48. 1:57cause and effect so for example this
49. 2:00would be a period of accumulation
50. 2:02causing the uptrend and this would be a
51. 2:05period of distribution which will
52. 2:08probably end up in a downtrend as it did
53. 2:11here as well as here now the third part
54. 2:14is the law of effort and result this is
55. 2:17where we're going to look at the volume
56. 2:19bars in conjunction with price action so
57. 2:21the first example that i showed you
58. 2:23right here was this period of
59. 2:25accumulation accumulation is basically
60. 2:28consolidation on the bottom end so we
61. 2:31had this big move down
62. 2:33a slow moving period of accumulation
63. 2:37this consolidation phase and yet you
64. 2:39could see in this area when the price
65. 2:41was dropping the volume was relatively
66. 2:43growing and you know getting there
67. 2:46now in this period where the price
68. 2:49action is flat you see this massive
69. 2:51amount of volume that's the effort and
70. 2:54result that this theory is pointing to
71. 2:57that in these zones there's massive
72. 2:59amounts of volume so this is basically
73. 3:01like a divergence price is flat yet
74. 3:04volume is high
75. 3:06versus when it's in confluence with each
76. 3:08other you know you get that nice smooth
77. 3:10movement down or up these are the areas
78. 3:12you need to look out for i get asked all
79. 3:15the time how do you know if price is
80. 3:16consolidating it's because it's flat and
81. 3:19volume is massively high that's how you
82. 3:21know the fourth part of the wyckoff
83. 3:23method is known as the composite man um
84. 3:26basically this is wyckoff's way of
85. 3:29saying that the market is pushed by an
86. 3:32evil entity the man the banks the
87. 3:35manipulators
88. 3:37and this allows you to think of the
89. 3:40market manipulator as a bad guy and you
90. 3:42know how he moves the market to screw
91. 3:44over the retail trader and how you can
92. 3:47actually get on board with him so you
93. 3:50guys probably want to know how to trade
94. 3:52this there are four stages to the whole
95. 3:57wyckoff thing and there's multiple i'm
96. 3:58going to get into like a more in-depth
97. 4:00video if you want to see that if you
98. 4:02actually do want to see that let me know
99. 4:03in the comment section down below but
100. 4:05i'm going to try to make this video
101. 4:06super short because every y cough video
102. 4:08is like an hour and a half long okay if
103. 4:11we fine tune this area of consolidation
104. 4:14you can see that once price started
105. 4:16going flat volume started to rise and
106. 4:19then we got this spike out of this range
107. 4:22and then it broke out this spike out of
108. 4:24the range is the trap that literally
109. 4:27like the people that got stuck here
110. 4:28really really got screwed and this is
111. 4:30what the composite man does he
112. 4:33traps traitors right here this is the
113. 4:35false breakout that i was talking about
114. 4:37in previous videos this is known as the
115. 4:40spring in the wyckoff method and it's
116. 4:42usually in an area of consolidation
117. 4:45which is on the bottom end known as a
118. 4:47period of accumulation with high volume
119. 4:50spikes and then it breaks out of that
120. 4:53range and that's when you can go in for
121. 4:54a long position so
122. 4:56when the price is accumulating after a
123. 4:59long downtrend this is why you want to
124. 5:02enter your trade at the top of this
125. 5:04range and not worry about these
126. 5:06breakouts keep the breakouts in your
127. 5:08mind and think of them as springs these
128. 5:10are the massive traps so look for the
129. 5:12breakout of these ranges with massive
130. 5:14volume and then you should start looking
131. 5:16for a long position once it breaks out
132. 5:18of that range after the accumulation
133. 5:20phase which is the first phase of the
134. 5:22wyckoff method the next one is the mark
135. 5:24up which is right here it breaks out of
136. 5:26that range moves up that's the markup
137. 5:28the next phase is distribution it's
138. 5:30another phase of consolidation but this
139. 5:32is on the high end and while
140. 5:34distribution is going you should be
141. 5:36looking for your positions to go short
142. 5:38so again you get this area of
143. 5:40consolidation with high spikes in volume
144. 5:43and then you get the spring out another
145. 5:46high spike in volume followed by a drop
146. 5:48in the price in the market this is known
147. 5:50as the mark down now this is an
148. 5:52extremely basic way to look at it the
149. 5:55whole wyckoff theory is extremely deep
150. 5:59and it can be broken down like way way
151. 6:02way more than what i'm doing right here
152. 6:04but i just want to give you a general
153. 6:06sense of price action supply and demand
154. 6:09and the white cough theory just to recap
155. 6:11we have a period of accumulation with
156. 6:13high volume spikes
157. 6:15followed by the mark up the uptrend once
158. 6:17that uptrend is exhausted we fall into a
159. 6:20period of distribution another
160. 6:22consolidation range with high volume
161. 6:25spikes and you need to keep an eye out
162. 6:27for the springs the breaks out of those
163. 6:30ranges those are the signals that once
164. 6:32those happen then you start looking for
165. 6:34your entry to go short after a period of
166. 6:37distribution and to go long after a
167. 6:39period of accumulation now also just to
168. 6:41clarify what the composite man does the
169. 6:44market manipulator he right here
170. 6:47is buying up a few positions not to
171. 6:50really you know make the market go crazy
172. 6:53but just to like build up his his long
173. 6:55position so he buys and buys and buys
174. 6:57every time he's at the bottom of this
175. 6:59range right here and then the last push
176. 7:01down is caused by the composite man and
177. 7:04then they start really taking off same
178. 7:07thing goes on the opposite end there's a
179. 7:09cell there's a cell and then there's a
180. 7:12big push off cell while the retail
181. 7:14trader is buying up he is slowly selling
182. 7:18off and then causing the mark down phase
183. 7:21now again if you guys want another
184. 7:23in-depth video explaining the entire
185. 7:26like breakdown of the accumulation phase
186. 7:29and the entire like series of events
187. 7:32that happens in each one of these phases
188. 7:34to get the laser entries let me know in
189. 7:36the comment section down below it goes
190. 7:39you know phase a phase b all the way to
191. 7:41phase e breaking the support and
192. 7:42resistance lines like this is
193. 7:44really really in-depth advanced stuff
194. 7:48so i just wanted to give you a breakdown
195. 7:49of the wyckoff theory and the why cough
196. 7:52method and how it works and how supply
197. 7:54and demand works so if you guys enjoyed
198. 7:56this video i'd really appreciate a big
199. 7:58fat thumbs up really helps out with the
200. 8:01youtube algorithm helps promote my
201. 8:02videos more and it helps the channel
202. 8:04grow so it's your thank you to me for
203. 8:07giving you this information for free and
204. 8:09if you guys have been in this situation
205. 8:11where you've been caught in the spring
206. 8:13and uh you know you've made those
207. 8:15mistakes check out this video that i did
208. 8:17on the top 10 mistakes that most retail
209. 8:19day traders make and if you guys want to
210. 8:21see more videos like this make sure
211. 8:23you're subscribed to the channel by
212. 8:24clicking this button right here thanks
213. 8:26so much for watching and we'll see you
214. 8:27in the next video