Alphabet (GOOG) - Wyckoff Reaccumulation Breakdown

25 сент.

In this idea, I’m analyzing a potential reaccumulation pattern on Alphabet (GOOG) using Wyckoff phases and the behavior of vector candles and volume. Price action, vector candles and volume give us clues about market participants' behavior at each phase.

Let’s break down the phases:

Preliminary Support (PS) occurs after an upward incline, showing the first signs of buyers stepping in to stabilize the price. Volume slightly increases, and bullish vector candles appear, signaling the beginning of accumulation.

Buying Climax (BCLMX) is the temporary high where buying pressure peaks. Volume spikes as large traders sell to retail buyers, and we see both bullish and bearish vector candles, indicating a tug-of-war.

Automatic Rally (AR) follows the BCLMX, marking the lower boundary of the trading range. Volume decreases as sellers lose strength, and bearish vector candles appear with less conviction.

Sign of Strength (SOS) is the breakout above the AR, confirming the dominance of buyers. Volume increases significantly, and large bullish vector candles signal strong demand.

Secondary Test (ST) is a pullback that retests support, with volume dropping off. Small, weak vector candles confirm the absence of aggressive selling, showing that buyers are still in control.

Spring is a shakeout that dips below support to trap sellers before reversing. Volume remains low, and any bearish vector candles lack follow-through, confirming it as a fake-out.

Test confirms the Spring with a low-volume retest of support. The lack of activity and small candles indicate the market is ready to resume its upward move.

Key Things to Look for in Reaccumulation:

-Declining sell volume on down moves, indicating weakening supply and a lack of aggressive sellers.

-Bullish vector candles with increasing volume during up moves, confirming demand and strength.

-Low-volume pullbacks (ST, Spring, and Test) with narrow candles, showing that sellers are being absorbed and buyers are in control.

-High-volume breakouts (like SOS) with wide bullish vector candles, signaling the potential for the markup phase.

-Sell volume spikes at resistance with no follow-through, indicating failed attempts to push the price lower, often followed by bullish moves and stronger uptrends.