Glad you liked the quiz...I think I might do it for a few weeks now....
I'm pretty sure that the very large volume spike on the SLC chart was an off market transfer, that just happened to be conducted and announced on that day. I personally ignore any volumes that were not actually traded on market, during trading hours. So when following a chart, try hard to find out if any very high volumes were all traded 'on market'. If you can't find out for sure, just look at the subsequent trading, there will always be a reaction you will understand in response. It there is no reaction at all, or nothing like what would be expected after a really high volume event like that, or an actual climactic event, you can pretty confidently expect it was an off market transfer.
That said, if I properly understand what you are saying, and it was an on market event, a couple of things come to mind.....
-Sometimes there is really high volume (or stopping volume) over a number of days, which may prove to be climactic action on a weekly timeframe.
And also remember if this type of event was to occur over a weekend, say from a Thursday through to a Tuesday (four days of very high volume), it probably wouldn't even show as climactic on either of the weekly bars, even if it actually is a climactic event overall - in the real world things don't always happen in a textbook fashion, so you need to be flexible in the way you think.
-If I understand you correctly, when the really high volume is drawn out after the initial Selling Climax, it shows that the original event may not have actually been as climactic as first thought, as much more supply has been drawn out at a later date. I understand that when it happened it would have appeared climactic, but in hindsight its name may need to re re-considered - this is one reason why I have changed from using these fixed labels all the time, and prefer to use words like "serious supply event" where possible, as it covers everything from very high volume to a climactic event, and although I do have to use words like 'buying and selling climax' sometimes, as they are the words other members know and understand, I prefer not to if I can help it.
So in this case, it is just that 'for some reason' a secondary supply event has occurred (remember pretty much anything is possible in the real world, so just take whatever happens in your stride, and remember not everything that happens on the markets will always fit into the regular wyckoff schematic, or at least not easily).
-Remember a true selling climax is a pretty rare thing, it really is a CLIMACTIC EVENT !!
Much more common is 'stopping volume' and even more common is 'much higher than average volume'.
It's a bit like an active volcano....it might rumble and smoke a bit quite regularly (higher than average volume),
and then it might get a bit more serious and some lava might spit or ooze out from time to time (stopping volume),
but a massive explosive eruption that requires evacuations, and shuts down all surrounding airspace, is much more rare (a true climactic event).
It is the same thing in the markets, a really climactic event is really quite rare, because something very very bad needs to happen for everyone involved in a stock, to capitulate and sell at the same time.
When I started to properly understand VSA and Wyckoff, and I realised how powerful these event could be, and wanted to know when they occured so I could possibly benefit from them. I would try really hard to find these events using scans, and with some help from other members.
But sadly there just wasn't very many to find, actually hardly any at all.
We would find high volume a lot, and perhaps even stopping volume quite regularly, just not true climactic events.
And while stopping volume or high volume have a somewhat similar response or result.....it is usually a much more short lived in duration, and is much less powerful event overall.
After that I tried looking backwards at stocks which were already in a strong and sustained up trend (to see how they began).
And they did often appear to start with a sideways accumulation zone.
But not always one that always began with a true climactic event (like a selling climax), usually it was just a high volume or stopping volume event.
And at other times there was no serious event at all. Sometimes a downtrend just stopped because the selling pressure stopped (or reduced), and in response price slowly morphed into a sideways trading range (in these cases price often traded sideways for a period without proper direction, before the actual accumulation seemed to begin).
So as time went on, I came to realise that not all accumulation zones have to begin with climactic action of some sort........maybe they once used to back in Wyckoff's time and when Tom Williams was trading in the 1960's and 1970's, but not so much now, or at least not every single time.
Following that I watched, and was involved in some stocks, which formed a sideways base or trading range (potential accumulation zone), and it seemed that quite a bit of the accumulation was done by buying the stock 'up' from the lows of the trading range to the highs of the trading range.
This was generally not the way accumulation was taught to me, so I considered it a modern adaption, from what had happened in the years and decades earlier.
This is what (to me) seemed to be happening in these cases - and perhaps it is just a (modern ??) variation on what Tom Williams said the Private Trading Syndicate he worked for would do, when they were accumulating a position.
So price is pushed lower by selling, but often it seemed (to me) to be done by short selling small amounts of stock, and buying back almost immediately from the stock drawn out as price falls. So not much stock is actually held short for any long period, it is just a process used to stabilise a stock when price maybe 'getting away' for some reason, and to ease price lower when in control of the price action. And if more stock is drawn out than needed to cover their current short positions, it was bought and accumulated as part of the overall long position. This was done repeatedly until price was down near the lows of the trading range. And at the same time as price was falling, the 'offer' was building up from holders who now wanted to exit the stock, but slightly higher than the current price. Then without any obvious reason, the price begins to rise and in a relatively short time the entire offer is bought 'up', and is accumulated back to the highs of the range. This overall process can be repeated over and over, until the accumulated position is complete.
---------------------------------------------------------------------------------------------------------------------------
Maybe when you see some of these charts in the future, you can post them on this thread (or on the wyckoff thread), and tag me in, and we can all look at them and see if we can disect what is happening.
cheers
