Market trends in composite averages Wyckoff method of trading stocks part 3 by Jack K. Hutson.
By looking at Vertical Line charts of composite averages using Wyckoff analysis, you can learn where the market is taking your individual and group stock picks. This third part of the Wyckoff Method series shows you clues to pinpointing future market actions.
Now that you have an overview of the history and philosophy behind the Wyckoff Method and an
outline of the procedures, let's start digging deeper into the actual techniques. Although we'll be
concentrating on the stock market, these techniques are equally valid in the commodities, currencies,
bond, and precious metals markets.
Before you can master the Wyckoff Method, however, you must remember that judgment is the most
important technique. You must use your mind and your experience because there are no fixed and firm
rules about market behavior—only general guidelines.
Keep two rules firmly in your mind, and you'll greatly increase your likelihood of success with the
Wyckoff Method. The first rule is this: Don't expect the market to behave exactly the same way twice.
The market is an artist, not a computer. It has a repertoire of basic behavior patterns that it subtly
modifies, combines, and springs unexpectedly on its audience. A trading market is an entity with a mind
of its own.