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RT’s
I would like to post an excerpt from an article by Murray A. Ruggerio Jr.
out of the May 97 Futures Magazine called Wyckoff’s study of supply and
demand. I credit this with improving my own trading this past year. I have
edited for clarity.
“Commercial traders(pros) buy as prices fall or remain steady, which is
called accumulation. Next is the markup phase, which occurs after a
sideways period and after the pros have finished buying their positions.
During this time prices start to rise. Once prices have risen to a certain
level, the pros begin to sell their positions to the public. Prices
continue to rise and then even out. During this time the pros continue to
sell and become net short. Next, what is called the mark down phase, the
market begins to fall. At some point, pros cover their short positions by
buying from the public (that think that prices will continue to fall) once
the pros have finished selling, there is another sideways move.
Regards,
Brent
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