Lecture Notes on Trading and Wyckoff Theory

Opening Remarks

• Good morning from South Florida
• Presenter plans to take kids out due to nice weather
• Presentation is a crash course on Wyckoff theory and analytics, not beginner trading
• Disclaimer: Not a market expert, sharing personal trading journey

Presentation Setup

• Presenter has a PowerPoint as a reference
• Encouragement for attendees to take notes
• Opportunity for Q&A during the session

Wyckoff Theory Overview

• Not a beginner course; assumes some trading knowledge
• Focus on Wyckoff theory and analytics
• Few experts in the community have thorough understanding
• Presenter is a full-time trader, started in 2019
• Background in harmonics, pitchforks, break, and retest strategies
• Transitioned to smart money concepts and Wyckoff theory

Personal Journey and Experience

• Learned from mentors Zach McDonald and institutional courses
• Spent significant hours studying and backtesting
• Developed a detailed trading plan with guidelines
• Emphasis on personal confirmation and backtesting

Wyckoff Theory Fundamentals

• Originated from Richard Wyckoff
• Analyzes market behavior by structure and price action
• Major market participants are key players (institutions)
• Takes significant financial power to move major currency pairs
• Identifies trend changes and corrections

What Wyckoff Theory Is Not

• Not a predictive tool for future price action
• Not a formula or algorithm
• Not a strategy, but a theory
• Requires incorporation of various trading concepts

Wyckoff Theory Techniques

1. Schematics: Accumulation and distribution phases
2. Phases of Structure: Understanding market cycles and structure
3. Key Indicators: Using tools like RSI, volume, and more

Accumulation and Distribution Schematics

• Types of accumulation: Type 1 (with spring), Type 2 (without spring)
• Key points: Preliminary support, selling climax, automatic rally, secondary test
• Volume analysis: Preliminary support shows largest volume spike

Market Structure and Cycles

• Importance of understanding market structure
• Market moves in cycles: accumulation, reaccumulation, distribution
• Avoid trading against the trend

Comparative and Relative Strength

• Use of correlations between pairs (e.g., AU and NU)
• RSI analysis for change prediction
• Volume indicators for trend interest

Practical Trading Application

• Identifying logical areas for trades
• Confirmations and confluence in trading plans
• Importance of break of structure for trade entry
• Trade management strategies: partials and hedging

Conclusion

• Presentation aimed to provide a comprehensive overview of Wyckoff theory
• Encouragement to continue studying and practicing the concepts
• Open for questions and further discussions

Q&A and Closing

• Presenter addressed questions on schematics, trading strategies, and more
• Provided guidance on backtesting and identifying Wyckoff schematics
• Encouraged attendees to practice and reach out for further clarification