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We are financial market enthusiasts using methods expressed by the Gann, Hurst and Wyckoff with a few of our own proprietary tools. Readtheticker.com provides online…

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Wyckoff 2.0 vesus Darvas, Elliot Wave, Drummond

Thinker

A quick re vamp, the Wyckoff 2.0 Chart

 

 

Market Phases with Cycles

The above chart is the visual definition of the Hurst and Gann value added Wyckoff method, or more simply Wyckoff 2.0. The above chart is Richard Wyckoff method for the 21st Century.

Wyckoff 2.0 Defined: It is the application of the Richard Wyckoff method in the pure form with the added value tools of Gann Angles and Hurst Cycles. The Gann Angle 1x4, 1x2 and 1x1 are used to assist in the location of pure price mark up (or down), the Hurst cycles are used to forewarn of (re) accumulation and (re) distribution phases. Extract from the site page called 'Richard Wyckoff method'

.."Wyckoff wished only to invest in the mark up (or down) phase of the stock price cycle, he also new determining the change over from accumulation (or distribution) to mark up (or down) phase was tricky and the risk of loss was at this time highly probable"...

Simple put, investing during the accumulation and distribution phases of a stock phase cycle is just too hazardous to warrant an investment decision.

Once an investor has determined the stock price is in the mark up phase then it does not matter the method or indicators used to profit, as all indicators and methods will do well during the mark up (or down) phase. The trick is to know the phase the stock is in. Lets use Apple Inc (AAPL) as an example once again.

Apple

From 2009 to 2011 Apple Inc is above the blue corridor (1x2 Gann Angle), this is confirmation that price is in a pure mark up phase. We hold the conclusion that all methods work well during the mark up phase.

For example:

1) Standard Indicators: Any oscillator picking short term dips would work.
2) Elliot Wave: The application of the 1 to 5 count for the impulse wave would work.
3) Darvas Boxes: The application of Nicolas Darvos boxes would work.
4) Drummond Geometry: Indicators from his toolset would work.
5) William O'Neil: CANSLIM would work.
etc

And the list will never end, everything works when the chart is nice and pretty.

It should be noted that:

1) Some of these system could exit you early. For example the Elliot Wave method may via the application of Fibonacci count may call a 5 wave top at only the 60% completion of the move.
2) The majority (or I should say all) of methods that allow investments during an accumulation or distribution phase struggle.

The above goes for newsletter and stock pickers, those that do well have selected more stocks during there mark up phase that those that have not, it is as simple as that. The reader has the ability to apply and learn Wyckoff 2.0 via our site to take advantage of profitable stock price mark up (or down) phases for better returns.

In our humble view the Wyckoff 2.0 method is the granddaddy of all methods, it is the approach all investors should apply.

 

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