This is my first ever attempt to jump onto the Wyckoff’s method bandwagon after spending weeks of reading and testing.
This post is as much an effort to figure out $ZILUSD’s trend as it is to grow my understanding in this school of thought.
As such, I welcome all feedbacks, criticisms, advices, and where I might have erred a thing or two, my apologies in advance.
Richard Wyckoff established simple but powerful observational rules for 4 trend recognitions: Accumulation, Markup, Distribution and Markdown — but nothing is really that simple, right?
Within this debilitating chart, which looks nothing like your standard Wyckoff schematics, it is pretty difficult to pinpoint in which trend $ZIL is in.
We see preliminary supply (PSY) contracting circa Dec 2020.
However, I find it difficult to confirm if we are in a distribution trend, as we see characteristics of upthrusts (UT), or if we are in a re-accumulation trend, where we see signs of strengths (SOS) aplenty.
$0.10 will be the critical point of support, while $0.15 is the crucial wall of resistance that Bulls need to break to induce retail confidence and invoke a ‘spring’ out of this creek, which is the highlighted red rectangular zone.
This ‘creek’ will be a point of particular interest in the next few weeks (or months even).
Until then, happy trading~!