Adapting Sequential Sell Signals to Wyckoff’s methods
A long position that I put on a few days ago paid off for me today. DXPE showed up on my Sequential screen when it crossed into the shaded area shown on the chart. The area is defined by using a modified version of Demark’s TD Sequential indicator. Basically the Sequential indicator defines an important level that can correspond to a turning point in a move up or down. Many top money managers use it to help them scale into, or out of a position without driving the price higher or lower, depending on what side of the trade they are on. To put it another way, the Sequential...
read moreBreakout Watch list
The following charts had recent breakouts from sequential sell patterns. Keep these on your watch list and look for a retest of the breakout price on lighter volume. I will return to these charts some time in the future and check on the strategy’s performance. The shaded area is the retest area. The top line is the buy point (on lighter volume) and the bottom line is the stop-loss point. The price target will be the high of the consolidation (e.g. 19.75 for SBUX). Watch list = OCN, TASR, CHD, DLTR, SBUX, VRSK, STR, EL
read moreTrading a Sequential Sell breakout
I like to combine several trading ideas into my personal style as much as possible. One of the most effective is the use of the Sequential Sell indicator to help me scan for breakouts above critical levels. I then use Wyckoff’s price and volume methods to enter a trade. In the following example, Mastercard (MA) breaks out above the Sequential Sell stop-loss level. This is what Wyckoff called “jumping the creek”. The trade is then setup when the price comes “back to ice” and tests the breakout levels. (See a description here) If the retest is on...
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