should bounce from here., page-82

Richard Demille Wyckoff

.....A pioneer in the technical approach to studying the stock market, Wyckoff was a broker, a trader and a publisher during the classic era of trading in early 20th Century.

He codified the best practices of such legendary traders as Jesse Livermore and others into laws, principles and techniques of trading methodology, money management and mental discipline. Mr. Wyckoff was dedicated to instructing the public about "the real rules of the game" as played by the large interests behind the scenes. In the 1930's he founded a school which later became the Stock Market Institute. His time tested insights are as valid today as when they were first promulgated ....

Wyckoff's Investment Theory

Conception of Primary Phases



Accumulation: The establishment of an investment or speculative position by professional interests in anticipation of an advance in price.

Markup: A sustained upward price movement.

Distribution: The elimination of a long investment or speculative position.

Markdown: A sustained downward price movement

.....Wyckoff believed that the action of the market itself was all that was needed for intelligent, scientific trading and investing. The ticker tape revealed price, volume and time relationships that were advantageously captured by charts.

Comparing waves of buying and selling on the bar chart reveals the growing strength of demand or supply. With the aid of schematics of accumulation or distribution, the speculator is able to make informed decisions about the present position and probable future trend of a market. The figure chart is added to project the probable extent of a price movement.

Wyckoff also revealed how to interpret the intentions of the major interests that shape the destiny of stocks and how to follow in the footsteps of these sponsors at the culmination of bullish or bearish trading ranges.

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wonder if Mr. Wyckoff was waiting for enough TA traders to be around for charting to become a self fulfilling prophecy

P.S. at age 15, he was a 'stockbroker runner'

born November 2, 1873, died March 19, 1934