XAO Monthly with Wyckoff Method of Analysis 28/08/2016.

What is the most important piece of information on a single price bar/candle ? Answer to this question will be revealed as we go along with our analysis.

What happened in August 2015  with XAO ? A selling climax was in place. Did we know whether the trading range that we have entered was accumulation or redistribution ? No, the short answer is.

What was our PnF  tentative bearish price objective which I have published ? 4760 from a 20 point 3 box chart.

Now, please look at the low made in August 2015. Did we see a close below that level on any subsequent month ? What was the message from the chart if we did not ?

What was ( how much)  the volume in Feb. 2016 ? Largest that it had been on any single bar since April top. Where was the close of Feb. 2016 ? Were buyers or sellers in control by the close ?  In terms of Effort vs. Result ( volume or VSA as some call it) if we analyse the bar of FEB. 2016, how do we read it ? Bit of a homework for those of us who may be interested in learning the second most important element ( volume) on any chart.

I will answer the first question. CLOSE is the most important information on any bar/candle.

Did XAO at any subsequent period, looking at this monthly chart, close below August 2015 low ? NO. Was there a WYCKOFF SPRING in place with Feb. 2016 Low ? Yes.

What do we expect after the high volume SPRING ?  Retest. Was that in place ? A big YES.

In terms of putting the jigsaw puzzle together we have THREE different methods ( including PnF) telling us that the C.O ( Composite Operator) was probably busy accumulating below August 2015 low. Wyckoff Analysis was loud and clear on this front.

I don’t personally know of any other method than the Wyckoff Method which would have signalled an earlier entry on this front.

Jeremy, thanks for the feedback about the prior post. No mistakes according to Jeremy with my markings on the prior post. I also wish you a success with your upcoming CFTe IFTA exam. as well. GL.

Monthly XAO Chart, Wyckoff Method applied.

xaomonthlywyckoff

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