Wyckoff trading method

Originally posted by Jako8557: ↑

Nice job @farmlife

Was all the volume last week traded 'on market' ??

If so, I expect there was pretty strong buying on this weeks narrow spread high volume down bar - that is generally a bar and volume to take note of.
Especially as there can often be an expansion in spread or range after a contraction in spread like that.

I don't know what sort of trader/buyer you are, but a short term trader would buy a break above the high of this weeks bar (with a stop below its low if you use stops), as all that buying would likely have caused a short term supply vacuum to develop and price might accelerate higher in response (at least temporarily).
It might not be a very long trade to hold, but if you are after pips, that would be a strategy. Keep in mind there is increased risk and reward buying at these levels.

Whereas an investor or medium term buyer would probably be better served waiting for confirmation, and potentially a clear breakout above the range (you may be giving up some potential profit doing this, but would likely be reducing risk in return).

Or perhaps a mixed strategy of the two can be confined if the initial buying is successful.

cheers

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I know I'm a better short term trader than swing trader. Your explanation of bullish reversals consolidated my thoughts, thank you for that, and @sharks37 explanation of spike lows also helped put it together for me. Thank you for that @sharks37. I used it during the week on the Buy Now Pay Later,(BNPL) stocks and started thinking I was a master trader until I read comments on various threads saying they had never seen activity like it. So now I think it was more I was just in the right time at the right place.
Am working on getting to swing trades. Your question about on market trades got me researching and I realized to be better at swing trades research should be more than a couple of mouse clicks and quick look.
So with WHC I found it has dropped out of the asx100 index.
My thoughts on that are some group had to drop there holding because they only hold asx 100 shares and they found someone to take it. To make it a fair price they agreed on a 5 day volumne weighted average price (VWAP). So straight away the buyers started forcing the price down to get a lower VWAP and the sellers had to support the price to get a reasonable VWAP so a line in the sand was drawn by the crew supporting it and that was as low as they were willing to let it go. I imagine all the buying and selling which resulted in such high volumnes on the different days was all done through computer trading.
Here's a 5 minute chart and the volumne can barely be seen because of the final sale.

Seems like a fair tussle was going on with each push down getting more strenuous.
That brings us to now, the sellers of the parcel don't have to support the price and have moved on and the buyers have paid their money so don't need to force the price down. So now it should find it's own level and like you said @Jako8557 it's possible a short term supply vacuum has been created.
It remains to be seen if they have made a good investment but it certainly is an interesting situation.
I'll definitely be watching it tomorrow.
Like everything in life the more you learn the more you find out how much more there is to learn.
I'll say thank you again @Jako8557.
Have a great night