Wyckoffian Logic

For those new to Wyckoffian Logic known as the Richard Wyckoff Method, this page aims to explain the concepts. Richard Wyckoff presented 3 basic laws at work always in the market.

The Law of Supply and Demand
When there is an excess amount of something (supply) the value of that item is reduced to draw in the demand needed to absorb that supply. Or, if there is a scarcity of something, then the value of that item will increase to create the supply that will meet that demand.

The Law of Cause and Effect
In order for there to be an effect (change in price), there needs to be a cause. The effect will be in direct proportion to that cause. Best price moves occur when there has been enough time to allow for a period of accumulation or distribution (or in other words a cause). A great example is when we see an expansion of box volume, length, and time.

The Law of Effort vs Results
If there is an effort, the result must be in proportion to that effort and cannot be separated from it. An example is when we have a lot of volume on an attempted up/down move. If we see a lot of volume we should see a lot of move. If we don't, we could have 
an imbalance in the market. These can create great entry points for trades in the market.

Time

Wyckoff talked a lot about time being correlated to volume. Time, like Volume also shows effort. Being able to see both time and volume at work proves to be very advantageous.

MBoxWave Wyckoff Trading System and the Wyckoff Method

The MBoxWave Wyckoff Trading System serves to show these 3 laws at work and helps identify periods of harmony or imbalance in the market. When imbalances can be identified this opens up a world of low risk trading opportunities.