Its worst for some of my trend-trading friends anticipating breakouts......buying near to the top of the range.......before cutting lost when the stock trades back to the lower bottom range.
One of the key teaching of Richard Wyckoff Method is the analysis of a trading range; Accumulation, Re-accumulation, Distribution and Re-distribution.
With his deep experience working with market insiders, he drafted out a set of rules helping private traders to identify the true actions of smart money, trade alongside with the smart money.
Here is a summarised range analysis of Singapore Post (S08), applying the Richard Wyckoff Method. You'll see the tell tale signs of a bearish re-distribution range as it develops, helping private traders to avoid long on the stock or profit by shorting the stock.
Bearish Signs of Re-Distribution Within SingPost's Trading Range
- Price Never traded above The Creek
- Stock Trading Weaker Against Market
- Stock Flow is Mostly Negative
- Price Showing Bearish Character
- Registered Sign of Weakness (SOW)
To learn more about the analysing the various type of range and the Wyckoff Method for trading. Click HERE to find out more about the next Richard Wyckoff Method class.