Selecting the best individual stocks Wyckoff method of trading stocks part 9 by Jack K. Hutson
Our discussion of Wyckoff's analytical methods have so far concentrated on deductive reasoning to
reach investment or trading conclusions. We first determined the position and trend of the general
market, then the positions and trend of group averages, and finally selected individual stocks based on
their ability to move in harmony with those larger trends.
The opposite approach-inductive reasoning-offers the experienced Wyckoff analyst a valuable way to
double check those conclusions. I emphasize experienced analyst because determining the positions of
individual stocks first and then proceeding to the market and groups requires more skill and judgment, as
well as more analysis time.