Wyckoff AND Smart Money Concept[ Order Blocks] PDF

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WY WYCK CK CKO OFF SCHE CHEM MAT ATIC IC ICS S IN COM OMBI BI BINAT NAT NATIION WITH ORDER BL BLOC OC OCK KS [I [I.C .C .C.T .T .T]] TRAD ADIING NG.. In this e book, you are going to learn the basics on wyckoff schematics and how they are used to trade the forex market and any other financial instrument. Without further ado lets go into the components of the book: 1. Introduction to Wyckoff accumulation and distribution. 2. How I trade Wyckoff in relation to Smart Money Concepts and confluence with Order Blocks 3. Best time to trade with Wyckoff 4. Entry with Order blocks on Wyckoff 5. Other notes and advice to traders.

1. INT INTR RODU DUC CTI TIO ON TO WY WYCK CK CKO OFF ACC CCUM UM UMUL UL ULA ATI TION ON AND DI DISR SR SRIB IB IBU UTI TION ON ON.. We all got the name Wyckoff from our Mentor/Forefather, Richard Demille Wyckoff [1873-1934]. Wyckoff was an avid student of the markets, as well as an active tape reader and trader. He observed the market activities and campaigns of the legendary stock operators of his time, including JP Morgan and Jesse Livermore. So from all his doings we found out that Wyckoff, from his observations and practices he had learned to identify trades and entering the long and short positions, analysis of accumulation and distribution. The main aim and objective of Wyckoff is to determine the coming move of the market with a good risk to reward ratio. I guess we have done a little bit of introduction now lets get to the next phase where we talk about the Wyckoff Events and how they

relate to the charts. First we have the accumulation stage, this is a stage we need to look out for if the market has ended a nice downtrend and wants to start a new trend to the upside. Wyckoff deals with trading in ranges, the trade range must possess some characteristics before we can say its a trade range

because not all trading ranges are Wyckoff trade ranges to take trades on, to avoid liquidity grabs.

I will write the characteristics as I trade them personally and not as how the real Wyckoff wrote it because I have modified the strategy to how it works for me, so if you are expecting me to write the whole 2 to 5 Wyckoff phases, sorry, Its not possible because I don’t trade everything in this market and since am an ICT trader I am not a full Wyckoff trader. I just borrowed this Wyckoff knowledge so I can get accuracy on my charts to know when the market wants to swing position from an uptrend to a downtrend or vice versa which can also help you. The characteristics include the following: 1. PRELIMINARY SUPPORT [PS]: This is a point where the initial buy starts after a very strong move to the downside. 2. SELLING CLIMAX [SC]: As the name said, selling climax, a last point where the market sells and the buying starts by the big boys which are the banks. The SC is always lower than the PS. 3. AUTOMATIC RALLY [AR]: Is when the market reaches SC and starts to push to the upside a little bit to show that selling pressure has finished. 4. SECONDARY TEST [ST]: When market comes to test the SC and creating more like a support area. We can have multiple ST after SC. 5. SIGN OF STRENGTH [SOS]: When price has a nice impulsive move to the upside at a higher volume. 6. LAST POINT OF SUPPORT [LPS]: When market pulls back after a SOS to retest a previous resistance that has now become a support.

These 6 phases are the characteristics that most of my trades possess before I enter any trade using Wyckoff schematics,

although there are other phases but I am writing this E book according to the way I trade and enter the market. I will show a labeled illustration that possess these 6 characteristics.

ILLUSTRATION 1.

From the diagram above we can see the Preliminary supply PS as the point where the initial buying begins after a long sell. Then SC which is selling climax that creates the first support follows, then the automatic rally AR to the upside followed by the secondary test ST which test the SC selling climax to create a support. Sign of strength is what I watch out for when I want to trade Wyckoff after seeing the first 3 characteristics, the I enter with the last point of support LPS. I will explain more on the entry at the later part, remember we are still in the introductory parts.

NOTE: TO KNOW THE SOS, IT BREAKS THE AR AND ALL FORM OF

RESISTANCE, SIGNIFYING BUYING PRESSURE. Also, when you see these characteristics on a trade range for accumulation we are very clear that the market is not creating a liquidity zone because from previous lessons we know that when market is ranging then its creating liquidity as it bounces off the support and resistance zones but the case is different here, once we spot the following characteristics we know for sure its a Wyckoff Accumulation phase. Secondly, we have the distribution phase which is directly the opposite for the accumulation phase. Its a situation whereby the market has ended or finished its move to the upside and wants to start a new fresh trend to the downside. So how do we now market is about to change direction?? First we need to wait for a trade range and check if it also has the following characteristics so that we are sure that its not a liquidity grab that wants to take us out. 1. PRELIMINARY SULLPY [PSY]: The first stage where market starts to sell after a strong move up to signify a change in trend is coming. 2. BUYING CLIMAX [BC]: Just as opposite to the selling climax, an area where the buyers climax reaches as it goes further up above the PSY. Just like the highest point that cant be broken again. 3. AUTOMATIC RALLY [AR]: When market starts to come down after its finished buying at BC. 4. SECONDARY TEST [ST]: A situation whereby market revisits or retests the BC and closes below the zone. 5. SIGN OF WEAKNESS [SOS]: A massive move to the downside usually breaking the AR. This is to signify a down move about to start then this is the point I look out for to start getting ready

to trade. 6. LAST POINT OF SUPPLY [LPS]: This is when the market retest the SOW or a support area created by the SOW.

I get my entries at the LPS most of the time because it gives a form of retest to the SOW. You identify a SOW when it breaks past all support zones most especially the AR. Sometimes we have the UTAD which is up trust after distribution that occurs when we have a break above resistance, it doesn't occur every time.

ILLUSTRATION 2 ON DISTRIBUTION PHASE BELOW:

ILLUSTRATION 3 ON DISTRIBUTION PHASE BELOW:

It wont be as easy as it seems when it comes to identifying these areas but all you have to do is identify good trend and look for when it will start to range then you can start these identifications so as to get your entries.

2. HO HOW W I TRAD ADE E WYC YCK KOF OFF F IN RELA LAT TIO ION N TO SMA SMAR RT MO MONE NE NEY Y CO CON NCE CEPT PT PTS S AN AND D CONFL NFLU UEN ENCE CE WI WITH TH ORDER BL BLOC OC OCK KS. In this Chapter I will be showing more of practical examples than writing but I will also be explaining them as I post them. Most of the time when I trade, I don’t see Wyckoff everyday but when I see setups on Wyckoff I make sure I try my best to milk the trade. Order blocks are smart money concepts that most ICT traders use to trade without any confluence but I personally use order blocks as a form of entry for Wyckoff analysis. When I spot Wyckoff accumulation or distribution, I wait for SOS or SOW then I wait for the Last point of supply and I use order blocks to look for entry after confirming the accumulation or distribution. The aim of Wyckoff Is to target good risk management but imagine when you use Order blocks for your entry after a Wyckoff accumulation or distribution, how sick the entry will be!

LETS GO WITH EXAMPLES. ILLUSTRATION 1.

From the illustration above we can see that the market has mitigated the 4hr order block and in the process of mitigation, the market gave us Wyckoff accumulation on the smaller timeframe as shown on illustration 2 below. Most of the time while trading with order blocks, we just wait for the normal mitigation and enter with another OB on the M5 time frame. And sometimes the mitigation presents a Wyckoff distribution or accumulation phase, which we will be looking at.

ILLUSTRATION 2

We can see a practical example of this trade taken. I will talk more about the entry when we get there and how to know if a wyckoff accumulation or distribution will take place.

ILLUSTRATION 3.

Clearly from illustration above, we have a nice order block that has been mitigated and in the process of mitigation we have Wyckoff distribution as shown in the next illustration 4.

ILLUSTRATION 4.

In this illustration, we can see the distribution process with the correct characteristics that a Wyckoff distribution phase must possess. If we could go deeper into lower time frames we would see more of the Secondary Test retesting the BC. Mostly you don’t

need to see the full characteristics but importantly is the SOW and SOS, then wait for LPS. ILLUSTRATION 5.

Same approach, yet looks so simple but very effective.

ILLUSTRATION 6.

From illustration 6, we can see the clear qualities of the accumulation, this one didn’t give me entries the day I was watching this trade so it flew off after the LPS. I as expecting the

LPS to come lower to test a resistance broken by the SOS but It didn’t do that.

ILLUSTRATION 7.

From illustration 7 above we can see the same order block and mitigation process, now lets go the the smaller timeframe for Wyckoff distribution. ILLUSTRATION 8.

After spotting the Wyckoff phases, we look for entries around the

LPSY. Lets move to the next chapter we had enough of confluence examples.

3. BE BEST ST TIM IME E TO TRAD ADE E WIT ITH H WYC YCKO KO KOF FF. Wyckoff, from my personal observation, I got two times to trade Wyckoff, which is after the Asian consolidation session and a nice Monday morning but in this E book I will write just little about the Asian session range then I would talk about the Monday Wyckoff trades in my mentor ship program, since this is just a free E book. Wyckoff deals with range and the Asian session also ranges before the London session comes in, does this make sense?? Lets move to the next chapter. Wyckoff doesn't work on volatility index but order blocks work on volatility index.

4. EN ENTR TR TRY Y WITH ORDER BL BLOC OC OCK KS ON WYC YCK KOF OFF. F. Now that we know about confluence [which is trading Wyckoff when we get a mitigation on our HTF order block], we need to know how to enter a Wyckoff range with the use of order blocks. Remember our entry on Wyckoff should be after we get our SOS or SOW then we enter at the LPSY or LPS. I wont do the analysis again since we have done that in previous chapters so I will only go straight to the point. But I send analysis everyday on my mentor ship group to help my students.

Our entry will be at LPS, which will be a mitigation on the order block caused by the SOS. Most of you will ask that what if there is a liquidity grab but once you see the Wyckoff properties, the ST or UTAD will be the liquidity grab for Wyckoff. ILLUSTATION 1.

From this illustration 1 above, we got our entry at the LPS when it mitigated the order block caused by the impulsive move to the upside also known as SOS. Remember LPS is a pullback to retest a broken zone caused by the SOS, in this process we look for order block and set our pending orders according to the psychological numbers. Round/Psychological numbers will be treated in my mentor ship. ILLUSTRATION 2.

Same logic and process applies also to Illustration 2. No hard rules here at all, spot the Wyckoff phase and wait for the SOW the enter the LPSY as your entry after spotting an order block created by the SOW. ILLUSTRATION 3.

Still the same process again but in this trade I sent to my students today and even in the free group, I got in too early without waiting for the UTAD and as you can see I almost got my SL hit out of

impatience but in the process I got the real UTAD and SOW then I entered again at the LPSY which is meant to be our real entry as the market moved down again I used order blocks to get my entry that's why you can see two tools for a sell. The move is still small am still expecting bigger moves since an following the market trend, which is an overall downtrend from the daily TF. The next illustration will be an example of Wyckoff trade taken on a Monday morning. There are levels to trading these things. Trading Wyckoff on a Monday morning means you are not using any confluence. I will stop there. ILLUSTRATION 4.

The market didn’t present it clearly this is because its not a confluence, the entry was on the LPS as always and the orders were set on the order block created by the SOS. That will be all for now.

5. AD ADV VIC ICE E TO TRAD ADE ERS  ITS NOW HOW MUCH MONEY YOU MAKE IN THIS MARKET,

ITS HOW YOU MADE THE MONEY  HAVE ONE STRATEGY  KNOW THE TYPE OF TRADER YOU ARE EITHER SCALPER, DAY TRADER OR SWINGER, AM A DAY TRADER AND SWINGER  ALWAYS KEEP YOUR LOSSES SMALL. RISK MANAEMENT IS KEY, IM ALSO TEACHING MY STUDENTS THIS BY NEXT WEEK.  DON’T FALL FOR THE BLUES, KNOW THE RISK ATTACHED THIS IS ESPECIALLY WHEN YOU ARE SEING CRAZY INSTAGRAM TRADERS.  KNOW WHY YOU MADE PROFIT AND WHY YOU MADE LOSS THIS WILL HELP YOU GROW AS A TRADER A TRADING JOURNAL IS ESSENTIAL.  DO NOT FAIL TO PLAN  DON’T DEPEND ON SIGNALS  ACCESS YOURSELF SO YOU CAN ALWAYS BE IN PROFIT. PRAY BEFORE YOU TAKE TRADES AND PRAY AFTER YOU TRADE, GOD IS THE GIVER OF KNOWLEDGE. MY ME MENT NT NTOR OR ORSH SH SHIP IP PR PRO OGR GRAM AM IN INCA CA CASE SE YO YOU U AR ARE E IN INT TER ERES ES ESTE TE TED D.  FEE IS 50$ ONE TI TIME ME PA PAYME YME YMENT NT  MEN MENTO TO TORS RS RSHIP HIP IS A LI LIFET FET FETIM IM IME E SE SERV RV RVIC IC ICE, E, S OM OME E OF MY ST STUD UD UDEN EN ENTS TS HA HAVE VE BEE BEEN N WI WITH TH ME FO FOR R MO MORE RE TH THAN AN 2 YEAR EARS S

IN THE ME MENT NT NTO ORS RSHIP HIP I DEAL WIT ITH H TH THE E FO FOLL LL LLO OWI WING NG BA BASE SE SED D ON TH THE E ST STR RAT ATEG EG EGIE IE IES S TA TAUG UG UGHT HT HT:: 1. 2. 3. 4. 5. 6.

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