Bittrex ETCBTC 1D - Wyckoff Accumulation/Distribution Analysis

This is an attempt at trying to identify Wyckoff events and phases of ETCBTC:BITTREX.

Starting off with the previous distribution, we have the following events:

• Preliminary Supply - This shows an unloading of the asset after a strong rally, usually accompanied by large volumes (in this case higher relative to previous time frames).
  
• Buying Climax - Very large rally accompanied by highly increased volumes and large spreads.
  
• Automatic Reaction - After the buying diminishes post buying climax, the reaction takes place; sets the limits of the lower trading range.
  
• Secondary Test - The price action revisits the area of the climax testing demand and supply at these level.
  
• Sign of Weakness - Supply is now dominant; sets the limits of the lower trading range
  
• Last Point of Supply - After a support is tested on a sign of weakness, a small rally forms which will struggle due to weak demand or substantial supply (or both). Usually it represents the exhaustion of demand before markdown begins
  
• Upthrust after distribution - It occurs in the late stages of the trading range and provides a final test of new demand after attempting a breakout above the trading range resistance.
  

Going into the new accumulation phase, we have the following events:

• Preliminary Support - Substantial buying occurs after a prolonged down move, we have high volume and high spreads signaling that the down-move is ending.
  
• Selling Climax - Point at which large spreads and large selling pressure is starting to be absorbed.
  
• Automatic Rally - Occurs after intense selling pressure diminishes. The high of this rally will help define the upper boundary of accumulation trading range
  
• Secondary Test - Price revisits the area of the selling climax to test supply/demand at these levels. It is common to have multiple tests after a selling climax.
  

Bình luận:

What we are to expect is the finishing of Phase B of the Accumulation and going into the Spring phase. So on a medium term we are to expect a potential down-turn of the price until it goes under the lower bound of the trading range, the end of which will result in a set of strong rallies, pushing the price action strongly up.

Bình luận:

Tl;dr - place buy orders under 0.001, start taking profit at around 0.1.

Bình luận:

Small correction of the above, buy orders to be under 0.0013.

Bình luận:

Taking profit from 0.0058 is also reasonable maybe...