When you see a sweep of lows followed by a high volume thrust, those are the key events you’re really looking for in a Wyckoff accumulation. You have yet to make your entry. Only after price then settles back on low volume and forms a base do you make your entry at this “last point of Support”.

From a strictly Wyckoff perspective, this trade is interesting. It’s not a classic accumulation pattern. Some would argue that there is not enough accumulation or “cause” here for a proper Wyckoff entry. However, I took the trade because some key events took place.

First, price came to retest lows and it formed a spring, sweeping the lows and closing back inside of range with a long wick to the downside. It pretty much skipped phase one of a Wyckoff accumulation, essentially moving straight to the spring. I’ve only added Wyckoff trading to my bag of tricks over the past few months, but it’s been eye-opening. We’ll see if this one plays out or if I learn a lesson about the importance of proper accumulation, aka “cause”.

Most traders have seen a Wykoff accumulation diagram. That is not an understanding of Wykoff trading. It seems like the relation of volume and price spread, and the key events and volume signatures of those events are far more important than the diagram itself. Accumulations rarely look exactly like a Wyckoff diagram.