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Here’s another example of accumulation into markup.
Any questions are welcomed.
hi, thank you for your explanation. now I start to see a little bit clearer. So my question would be: giving you a chart, how do you identify ‘accumulation, markup, distribution’ phases so that you can catch the big moves? Hope my question makes sense. THX
you’re right, you really don’t think like others. eg personally I’d write the pdf first, then start the thread.
You identify accumulation on mondays after high to mild volume over take a specific price area but it has to do this twice then going into wenesdays is usually when the market maker will pull out the markup phase and distribution is usually on fridays to close out the week. They have a shedule and once you master on when to track that shedule you can gauge when setups will happen. The key is to use WallStreet’s own tactics against them. Using the analysts’ calls and using the prior session to gauge when another trading session of accumulation will take place. These two things are your edges. For example once you’ve identifed where distribution is it is important to mark off where it occured then immediately pinpoint the next trading session with dividing lines, it’s that simple.
It’s not complicated. But you have to be careful and measure the strength in bars to make sure that the move will last. This is where volume comes into play.
Like i said it gets very complicated but is really very simple. You could base your entire trading setup off of the market maker and the analyst and be 80 % successful using only those two things but you need the entire setup. Strength and weakness measuring in bars is vital for these setups to work.
I think the other poster is right, maybe i should write the pdf first then mention it in the thread. I won’t lie, it will take some time, maybe a month or two but it can be done.
Going back to the accompliss, the market maker needs this individual if he’s going to make money in the markets. My setup also identifys when the accompliss will enter the market and will leave the market which is another chance to make extra profit. This all happens during the accumulation phase the methods that i use. So, why wouldn’t i trade the market using the markup phase. Time cost, the day is divided up into 24 hours. 10 of those hours will be spent and used for trading and the other 8 will be used for work for most of you and the other 6 will be for sleep. The markup phase is used by the market makers during the morning, the london session which is where the news releases come into play and add more risk. Say you want to trade the morning session, usually markups are about 30 to 80 pips wide. You catch the move then your done for the day. And keep in mind that the markup has no hidden buying pressure enough for you to scalp it, it’s a single spike then it’s done. There’s nothing signifigant there, trading that session, the markup phase. But if you consistantly trade the closing session when everyone is ‘asleep’ then accumulation and distribution can and will guarantee you heavy movement, in range of 200 to 250 pips moves everyt two days, some times more.
With accumulation you can scalp numerous times, with distribution it’s alittle more risk as the move is alot smaller than the markup phase, but you can scalp it because the market makers are unloading all the buys that they’ve accumulated earlier. To identify the distribution phase you have to look at volume and the analyst sell recommendation. Why would you ever look into the analyst recommendation? Because he will lie to you about 80% of the time but will be truthful with you the other 20% to capitalize on profit taking from the investing public.
The reason you can rely on the analyst during fridays and thursdays for the sell recommedation is because the market makers want to close out the week in profit and don’t want to be caught in another trading session week without finishing off the prior week for profit. Also, the sell recommendation plays right into accumulation. The distribution is a down bar. So, what better way to make money off of the investing public than to recommend a sell after distribution. Once they sell into the down trend after distribution they in turn have played right into the market maker’s trap gaining the market maker another set of profits to start off the trading week. Accumulation does not begin on Mondays despite what you may believe.
It does it when it’s more quiet when the investing public is least suspecting of it’s nature. Sunday is when accumulation usaully begins. The market makers know that the trading public usually don’t ‘get up’ and around into the markets until Monday, so Sunday is the perfect time to sneak into the market. This is when the accompliss is needed most. You could also play the markets off of just using range, volume, bars and accumulation but you have to be careful because alot of times bars lie and range becomes weak.
I could go into a whole array of detail but there’s much, much more to be said about the method.
Anymore questions are welcomed.
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The market maker has to have massive buying and minimal selling if he is going to be successful during the markup and has to have massive selling and less buys if he is going to be successful during accumulation.
I’ll give you a lay out of it so you know what it really behind all the so called “huge whipsaws” and so on.
All it is over all, all the zig zags, huge down bars, huge up bars and so on. All it is is accumulation into a big circle. A literal circle, notice the roundish formation of price after it finishes the distribution phase. That’s the layout of price acton. I personally use 1 minute, 15 minute and 30 minute charts. Because in my opinion they are the most accurate.There are many more things to cover, but basically that’s about 25% of the setup.
I hope you’re starting to see just how simple trading really is, it’s basically just an auction market. Except you’re auctioning off prices.
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Another question that might be rolling threw the back of your minds is,
Isn’t it illegal for the market maker to use ‘trader assistance’ (accompliss) filling? Some would say it is so, but being the nature of trading, what could the authoritys prove? Remember, for every buyer there’s a seller. You never know who is buying and selling at a certain price level and who isn’t, all trades are anonymous and that’s the way WallStreet loves it.
Hi Von,
How do you identify if it’s going to be a markup or markdown?
cheers
I’m subscribed and anxiously awaiting to hear more.
I’ve recently started learning/reading up on Wyckoff. Much of what you are saying about auctions, accumulation, distributions etc… I believe is the basis of his methods. Is Wyckoff the basis of your method?
Anthony
To identify markup you have to gauge the analyst recommendation and compare it to accumulation days and also about the markdown, you identify it using volume, usually there’s a ‘huge’ decreased in volume when the mark down is about to occur just before the distribution phase.
No, i don’t follow the Wyckoff method, i learned from a fellow trader known by the name of Chris Farrell, a stock trader that made it big during the late 90’s. He taught me alot in his writings, i learned the principals of buy and selling from him and started with just those two quotes, For Every Buyer There’s A Seller. I hope you all are beginning to see just how easy it is to get this way of trading down once you understand all of the key elements, 25% or so i’ve layed down thus far.
You have to excuse me, i’m not the best teacher so bare with me.
Thst’s great.A question,
That is a 30min chart on eur/usd from the last week.
How do you explain the markup pointed out on the chart?
Cheers
What would you like to know, about the volume, the distribution day?
If it’s about the markup day inbetween wenesday, thursday would be for the markup sometimes not always, but thursday into friday is usually for distribution days. Going back to the analyst, you could use the analyst to guage the timing of the markup into distribution. You can go back on numerous charts dates and they all point to the same schedule unless if it a news release on friday, NFP mostly.
I hope that i answered your question properly.
He wanted to know how you catch the markup phase using volume.
which analyst?
There are many analysts to choose from, but dailyfx plays out nicely.
Today the market is going into an early accumulation phase.
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hi, von:
Ok, after re-reading your thread from the 1st post, I have some questions that I hope you can further clarify in here or in your pdf. THX.
- What currency pairs/timeframes does your method work on?
- accumulation, distribution, markup/down, how do I tell when they begin/end?
- how do I enter/exit trades using your method?
Thx for your time!
MOst important and nice question. We are eagerly waiting for VON’s answer
I trade the EUR/USD mostly, it has the thinnest spread.
You know when they begin by observing downbars and paying close attention to the range of the bar.
For example,
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is it in a weak uptrend or a strong downtrend? If in a weak up trend then you know that it’s a buying compain by the market makers wanting to increase in on the range of the move. In other words accumulation will be done in an uptrend instead of your usual choppy whipsawish manner. If it’s in a strong downtrend and there is high volume on both sides of the market then you know that the move is foreal and is going up into markup really soon afterwards.
If it’s a weak down trend on low volume then you know that the move is fake and is a trap by the market maker because with all of his buying power he has to make the accumulation last for as long as he can until he can convince enough buyers to enter long for the markup phase. Meaning, that the move won’t last and is subject to a quick reversal.
You enter when there is a strong downtrend with weak volume into a strong down bar, as shown in the example of the chart, you enter long. You want to enter long at the end of the downbar on high volume. You exit after the up move has run out of steam, take your pic, you’ll know when because the move will stall for abit then momentum will start dying down.
All of this points to one inevidable ourrance, accumulation days are what dominate the market and hence is my perfered method of trading. I hope that i’am breaking some ground here.
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