Step 1. Determine current position ̣and possible future trends of the market. Is the market consolidating or trending? Analyzing the market structure, and examining whether supply and demand factors indicate a possible direction in the near future? This review will help you decide whether to enter the market and if so, whether to enter long or short positions. Use both candlestick charts and Point & Figure charts for major indices and industry indicators in this Step 1.

Step 2. Choose stocks that are in harmony with the trend. During an uptrend, choose stocks that are stronger than the market. For example, look for stocks that show larger percentage gains than the general market during rallies and smaller declines in corrections. During a downtrend, do the opposite - choose stocks that are weaker than the market. If you are unsure about a particular issue, remove it and move on to the next issue. Use the candlestick chart of each individual stock and compare it with the chart of the best market indicator for Step 2.

Step 3. Choose stocks that have "Cause" equal to or above your minimum target. A key component in Wyckoff's trading selection and management is the method of determining price targets using the target estimation formula of Point & Figure (P&F) charts for both buying and selling transactions. . In Wyckoff's basic law of 'Cause and Effect', the horizontal background of the P&F graph represents the 'Cause', while the next price movement represents the 'Result' - Corresponding to H-count and V- count that I often use. Therefore, if you are intending to enter long positions, choose stocks that are accumulating or re-accumulating and that have sufficient cause to satisfy your outcome. In Step 3 we mainly use Point & Figure graphs for individual stocks.

Step 4. Determine the "ready" level of the stock. Applying 9 test buy and sell test (link below). For example, in a trading range that emerged after a prolonged rally, does evidence from 9 sell trials suggest that a significant amount of Supply is entering the market? If so, start selling. Or in a clear cumulative trading range, 9 buying trials have shown that Supply has been successfully absorbed, as evidenced by the Spring hits with low volume appear. If satisfied, start buying! Use candlestick charts and Point & Figure charts of individual stocks for Step 4.

Step 5. Control the order and determine when you no longer want to stick with the market. Three-quarters of the time, the individual stocks move in harmony with the general market. So, to improve trading probabilities and success, define the strength of the overall market behind it. Wyckoff's specific principles help you predict potential market moves, including changing price action characteristics leading to trend changes (such as largest bearish bars on high volumes. after a long uptrend). Place your stop loss at the specified position, and then progress it (trading), until your position is closed. Use candlestick charts and points and shapes for Step 5.