Wyckoff Method: How to Enter Trades Like Smart Money

The Wyckoff Method is a powerful strategy used by institutional traders to predict market movements. If you want to trade like the smart money, you need to understand accumulation, distribution, and market cycles.

1️⃣ Market Phases in Wyckoff

The market moves in four key phases:

Accumulation (Smart money buys before the trend starts)

Markup (Price rises as public joins in)

Distribution (Smart money sells at high prices)

Markdown (Price drops as public panic-sells)

2️⃣ Wyckoff Entry Strategy

🔹 Long Entry (Buy) in Accumulation Phase

✅ Look for Spring (Fake Breakdown) – a stop-hunt move below support.
✅ Wait for a Break of Structure (BoS) – price quickly moves back up.
✅ Enter on a retest of support, with a stop-loss below Spring.
✅ Take profit at resistance zones or during Distribution Phase.

🔹 Short Entry (Sell) in Distribution Phase

✅ Look for Upthrust (Fake Breakout) – a stop-hunt move above resistance.
✅ Wait for a Break of Structure (BoS) – price sharply drops.
✅ Enter on a retest of resistance, with a stop-loss above Upthrust.
✅ Take profit at support levels or during Markdown Phase.

3️⃣ Risk Management in Wyckoff Trading

Use 3-5x leverage for safe trading.

Risk only 1-2% of your capital per trade.

Set stop-loss outside manipulation zones (below Spring or above Upthrust).

Exit partially at 1:2 or 1:3 risk-reward, then let the trade run with a trailing stop.

Final Thoughts

The Wyckoff method helps you trade like professionals by following smart money movements. Stay patient, wait for confirmation, and manage your risk wisely!

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