The Wyckoff Method

Stock Selection

Wyckoff laid out exactly how to implement his method.  It is a well-thought out and sound process that takes into account all vital factors before making a commitment to the market.  Because the “path of least resistance in the markets is the trend,” this is the first consideration to make: what is the trend of the overall market?  Equally important, a trader wants to determine whether the trend is just beginning or if it has been running for a while and becoming overextended.  Stocks are selected that are not only trading consistent with the trend, but are also showing clear signs that it is stronger than the trend if up or weaker than the trend if down.  These stocks are also assessed for valid periods of accumulation or distribution, depending on whether the trader is looking to buy or sell short.  With this broader overview, more refined analysis brings the trader to a stock or two best ready to move.  Entries are timed with turns in the overall market.