WyckoffTheory

Richard D. Wyckoff and his Market Investment Theory

in FI 354-355graduateclasses

Wyckoffs InvestmentTheory

Conception of Primary Phases

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Accumulation:Theestablishment
of an investment or speculative
positionby professional
interestsin anticipation
of an advancein
price.
A sustainedupwardpricemovement.
Markup:
Distribution:
The elimination
of a longinvestment
or speculative
 position.
' Markdown:A sustaineddownwardprice movement.

.....Wyckoffbelievedthat the action of the market itself was all that was neededfor
intelligent,scientifictradingand investing.The tickertape revealedprice,volumeand time
relationships that were advantageously capturedby charts.

Comparingwavesof buyingand sellingon the bar chart revealsthe growingstrengthof

demandor supply.With the aid of schematicsof accumulationor distribution,the speculator
is able to make informed decisionsabout the present positionand probablefuture trend of a
market. The figure chart is added to project the probableextent of a price movement.

Wyckoffalso revealedhow to interpretthe intentionsof the major intereststhat shapethe

destinyof stocksand how to follow in the footstepsof thesesponsorsat the culminationof
bullishor bearishtrading ranges.