A comprehensive approach to technical analysis and market theory developed by Richard D. Wyckoff in the early 20th century that focuses on the relationship between price, volume, and time to identify the activities of large institutional operators (smart money). The methodology includes three fundamental laws: Supply and Demand, Cause and Effect, and Effort vs. Result, along with detailed schematics for accumulation and distribution phases. Modern traders apply Wyckoff principles to identify institutional buying and selling campaigns, optimal trade entry points, and the likely direction of the next major price movement.
Example
“The analyst identified a Wyckoff accumulation schematic on the daily chart, with a spring below support on low volume confirming the final shakeout before the markup phase began.”