WYCKOFF METHOD: MY VIEW ON THE OLD SCHOOL OF MARKET MANIPULATION

Richard Wyckoff... A legendary trader of the last century, whose ideas still inspire admiration in some and skepticism in others. I have studied his methods for many years, and you know what? They work! But not as perfectly as many think.

The essence of the Wyckoff method is to understand the psychology of the "big players." Those very "sharks" that move the market while we, the small fish, flounder in their waves. I often caught myself thinking: "I was outplayed again!"

WYCKOFF'S FIVE-STEP APPROACH

1. Accumulation - here the whales quietly accumulate assets while everyone is in panic
2. Uptrend - when it's already too late to enter, but the crowd is still rushing to buy.
3. Distribution - smart money starts to sell off
4. Downtrend - a crash when ordinary traders lock in losses
5. Consolidation - the calm before a new cycle

On my monitor, there is always a reminder: "Define the market phase or you will lose money." I swallowed this bitter pill after making several serious mistakes.

PRICE CYCLE - WHAT YOU NEED TO KNOW

In the accumulation phase, when everyone is shouting "the market is dead", large capital is already being accumulated. On the charts, this looks like a boring sideways movement. A classic trick of manipulators is to lull the crowd's attention!

In an upward trend, naive investors are finally waking up and starting to buy. Smart money is already in profit.

In the distribution, the whales sell you their assets at inflated prices. They need your money! I have seen so many times how mass euphoria turns into panic in just a few days.

The downward trend phase is the fastest and most painful. Panic spreads faster than greed. This psychological fact was understood by Wyckoff a hundred years ago!

WYCKOFF MARKET LAWS

The law of supply and demand

A banal truth: more demand — higher price. But are you watching the volumes? I noticed that many don't even look at them. A big mistake!

Law of Cause and Effect

The essence here is simple: large capital creates a "reason" for future price movements. They buy your coins when you are desperate and sell at a loss. And then they sell them back to you, but at a higher price! A brilliant scheme, isn't it?

Law of effort and result

This law is often ignored. If the price is rising but the volumes are low — prepare for manipulation and a reversal. How many times have I seen such traps on trading platforms!

CAN THIS METHOD BE TRUSTED?

Wyckoff works. Not perfectly, but it works. Even in the cryptocurrency market, although it is more volatile. With the arrival of institutional investors in the crypto market, manipulations have become even more obvious.

But keep in mind - the lower the liquidity of the asset, the worse the analysis works. Searching for Wyckoff patterns in small tokens is a waste of time.

I long denied this method, considering it outdated. But after several years in the market, I realized — the psychology of the crowd has not changed in a hundred years. Greed and fear remain the same. And Wyckoff simply created a tool for analyzing these emotions.

And remember — trading platforms with their commissions are interested in you trading more often. The Wyckoff method teaches patience. Maybe that's why it isn't talked about as often?