Many market strategies are built on Richard D. Wyckoff's principle: "Before a price increase, there is accumulation; before a price decrease, there is distribution". Based on this concept, we'd like to introduce Breakout Hunter, an indicator that focuses solely on price action to identify breakout opportunities. The indicator identifies absorption zones, where the price moves sideways as buyers/sellers absorb selling/buying pressure, indicating a pause before a breakout. Once the absorption process completes, the price exits the zone, and the indicator signals a breakout in the next direction (up or down). For more details, please visit its product page.
Chat with serious traders? Wyckoff's principles were bastardized by Stan Weinstein in his late 1980's book. Weinstein bought The Professional Tape Reader (name and subscriber list) from the late Justin Mamis Candles were introduced to the US in 1991 by Steve Nisson. 50 years after Wyckhoff died. Apples and oranges. Thee accumulation phase, for a meaningful move, generally takes years. Low volume. Tiny little sucker rallies. Wears out all rigid retail holders. Including both bag holders and the deep value investors. Accumulated by the ax (core inventory) and/or insiders. They enjoy the mark up. I suspect you don't know jack about a tax-segregated omnibus account. Available since 1948 via a Federal Reserve Regulation letter. Ushered in the post-war bull market. As much as 20-1 leverage. Requires a money center bank line. In addition to core inventory (in theory to maintain a fair and orderly market) he has a trading inventory and his order book of open orders and both sides of his spread. Shrug your shoulders? Simply multiply the average (in cents) between bid and ask of HIS spread by daily volume. His order flow. Per day. "Ax" isn't some cute little nickname.
Hello ninZa.co, Great video. Please use NinjaTrader 8 Strategy Analyzer and back test Breakout Hunter, from 2006 to today and post the results to the thread. This should only take you 2 minutes of your time and effort. Thank you kindly.