Wyckoff playbook

4/12/2017

The Essential Wyckoff Playbook

DR. GARY DAYTON

Disclaimer
IT SHOULD NOT BE ASSUMED THAT THE METHODS, TECHNIQUES, OR INDICATORS DISCUSSED IN THIS
PRESENTATION WILL BE PROFITABLE OR THAT THEY WILL NOT RESULT IN LOSSES. THERE IS NO ASSURANCE
THAT THE STRATEGIES AND METHODS PRESENTED WILL BE SUCCESSFUL FOR YOU, OR THAT YOU WILL BECOME
A PROFITABLE TRADER. THE PAST PERFORMANCE AND RESULTS OF ANY TRADING SYSTEM OR TRADING
METHODOLOGY ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. YOU SHOULD NOT TRADE WITH
MONEY THAT YOU CANNOT AFFORD TO LOSE. EXAMPLES DISCUSSED AND PRESENTED IN THIS PRESENTATION
ARE FOR EDUCATIONAL PURPOSES ONLY. THESE ARE NOT SOLICITATIONS OF ANY ORDER TO BUY OR SELL. DR.
GARY DAYTON AND TRADINGPSYCHOLOGYEDGE.COM AND ALL AFFILIATES ASSUME NO RESPONSIBILITY FOR
YOUR TRADING RESULTS. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO
ACHIEVE PROFITS OR LOSSESS SIMILAR TO THOSE DISCUSSED IN THIS PRESENTATION. THERE IS A VERY HIGH
DEGREE OF RISK IN TRADING. YOU ARE ENCOURAGED TO CONSULT A CERTIFIED FINANCIAL ADVISOR BEFORE
MAKING ANY INVESTMENT OR TRADING DECISION.
HYPOTHETICAL, HINDSIGHT, OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS.
UNLIKE AN ACTUAL PERFORMANCE RECORD, HYPOTHETICAL, HINDSIGHT, OR SIMULATED RESULTS DO NOT
REPRESENT ACTUAL TRADING. ALSO, SINCE SOME OF THE TRADES DISCUSSED IN THIS PRESENTATION HAVE
NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF
ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. NO REPRESENTATION IS BEING MADE THAT
ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE DISCUSSED AND/OR
SHOWN.

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Copyright
Please be aware that the material presented in this webinar, including PowerPoint documents,
video and audio recordings are copyrighted materials. Your use of these materials is limited for
your personal use only. You may not reproduce, translate, store in a retrieval system or transmit
in any form or by any means these materials for resale, redistribution, electronic display, or any
other purposes, including but not limited to books, pamphlets, articles, video- or audiotapes,
blogs, file-sharing sites, Internet or intranet sites, and handouts or slides for lectures,
workshops, or webinars, whether or not a fee is charged. Written permission to reproduce
these materials for these or for any other purposes must be obtained from the author and
owner of this intellectual property, Gary Dayton.

COPYRIGHT 2014 GARY DAYTON & PEAK PSYCHOLOGY, INC.

All Charts created with charting packages developed by:
TradeStation Technologies, Inc
Trade Guider, LLC
MultiCharts, LLC

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Why This Course?
 Difficulties of discretionary trading

 Simple, straightforward approach
 Small number of setups

Wyckoff Playbook – Trade Setups
Occur frequently
Straightforward
Not a lot of complicated elements
Easy to identify
Simple to execute
Straightforward profit targets
Produce good profits

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What We’ll Cover
Trading Wyckoff

Wyckoff Market Principles

◦ The Wyckoff Playbook: Trade Setups
◦ UpThrust
◦ Spring
◦ Sweet Spots in a Trend

◦ Bonus Trade Setups
◦ First Higher High
◦ First Lower Low

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Supply & Demand
Effort vs Result
Accumulation & Distribution
Line of Least Resistance
Overbought/Oversold
Market Structure
Climactic Action
Shortening of the Thrust
Pulse-Rest-Pulse

Wyckoff Playbook
PRIMARY TRADE SETUPS: UPTHRUST

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Wyckoff UpThrust

Wyckoff UpThrust – Example: GC Daily

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Wyckoff UpThrust – Example: CL Daily

Wyckoff UpThrust – Examples: ES Hourly

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Wyckoff Playbook
PRIMARY TRADE SETUPS: SPRING

Wyckoff Spring

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Wyckoff Spring – Examples: ES 60-Minute

Wyckoff Spring – Example:
CL 240-Minute

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Wyckoff Playbook
PRIMARY TRADE SETUPS: SWEET SPOT IN TRENDS

Sweet Spot in Trends

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Sweet Spot: Trends – Example:
CL 240-Minute

Sweet Spot: Trends – Example:
ES 60-Minute

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Sweet Spot: Trends – Examples: CL Daily

Monday Trading
S & P E-MINIS

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ES – Monday AM

ES – Monday AM

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ES – Monday AM

ES – Monday AM

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ES – Monday AM

ES – Monday AM

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ES – Monday AM

ES – Monday AM

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ES – Monday AM

Recap for Sweet Spot in Trend
1.

2.

3.

4.

Background conditions are conducive for short trade

◦ LH  LL  LH  LL
◦ Supply (Selling) is dominate

Weak Rally

◦ Price bars overlap; upflow is poor

◦ Demand volume is light or modest

Entry is clear

◦ Price action
◦ Low of last bar or 2nd to last bar is broken
◦ Uptrend line is broken
◦
◦

Exit

Measured move
Trend channel

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Wyckoff Playbook
BONUS TRADE SETUP: FIRST HIGHER HIGH

Bonus Trade Setup: First Higher High

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ES – Monday PM

ES – Monday PM

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ES – Monday PM

ES – Monday PM

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Recap for First Higher High Trade Setup
1.

Downtrend has ended
◦ Supply (selling) dries up
◦ Downtrend line breaks

2.

Price advances above last swing high
◦ Demand strong
◦ If there has been a congestion area that breaks, this is a plus

3.

Weak reaction
◦ Price bars overlap (downflow is poor)
◦ Light to modest volume
◦ Can go deeper than a typical trend reaction

4.

Entry & Exit same as Sweet Spot in Trend

Monday Trading
CRUDE OIL (CL)

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CL – Monday

CL – Monday

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CL – Monday

CL – Monday

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Recap for First Lower High Trade Setup
1.

Uptrend has ended
◦ Demand (buying) dries up
◦ Uptrend line breaks

2.

Price drops below last swing high
◦ Supply strong
◦ If there has been a congestion area that breaks, this is a plus

3.

Weak rally
◦ Price bars overlap (upflow is poor)
◦ Light to modest volume
◦ Can go farther than a typical trend reaction

4.

Entry and Exit as described for other trend trades

Monday Trading
GOLD (GC)

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GC – Monday

GC – Monday

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GC – Monday

Tuesday Trading
S & P E-MINI (ES)

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