Wyckoff and Hurst Would Be Best Friends

By: readtheticker | Sun, Jul 3, 2011
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Jim Hurst

Our site is about Wyckoff, Gann and Hurst, or should I say how the tool set of Gann and Hurst add strings to the bow of the Wyckoff investor. In the end we all wish to invest like Richard Wyckoff, we are all hunting for stock price mark up.

In a closing paragraph of this post Wyckoff method improved1 we said:

.."If you haven't yet worked it out, the Wyckoff Investor is a mark up (or down) hunter. Wyckoff determined that the highest probability for mark up (or down) to occur was on the completion of his nine rules. We believe the application of Gann Angles in the correct way aid the Wyckoff Investor to nurture and enjoy as much of the mark up (or down) process as possible"...

We would like to add another set of scenario's to Wyckoff nine rules, and that would be the three signals produced by the Jim Hurst method through the application if cycle theory.

  1. When price conforms to a cycle trough and moves upwards with the cycle rising.
  2. When price conforms to a cycle peak and moves downwards with the cycle falling.
  3. Which price fails to conform to the cycle and moves in a manner inverse to the cycle action.

The short and long term dominant cycle are the birth places of accumulation and distribution. The monitoring of cycles is very beneficial to forecasting the next market phase. Cycles have a very good habit of timing the next explosion of activity (mark up or down). We feel Hurst cycles add another string to the bow for the Wyckoff Investor.

NOTE: Cycles do not replace Wyckoff nine rules, they do however help filter out those patterns that are less attractive.

Market Phases With Cycles

The posts named Wyckoff method improved 1 and 2 are presented summarized in the post called Powerful patterns.

 


 

readtheticker

Author: readtheticker

readtheticker
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We are financial market enthusiasts using methods expressed by the Gann, Hurst and Wyckoff with a few of our own proprietary tools. Readtheticker.com provides online stock and index charts with commentary. We are not brokers, bankers, financial planners, hedge fund traders or investment advisors, we are private investors.

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Source: The Contrarian Take http://blogs.forbes.com/michaelpollaro/
austrian-money-supply/