Quote from: Wechsler on June 23, 2018, 10:18:39 AM

I would like some thoughtful replies on those who are familiar with the Wykoff Method. Recently, there have been many citing the Wykoff Method for Bitcoin - that it's in accumulation mode.

I would like to forward my critique of this method, which is based on breakouts. According to the method, an uptrend with little volume is a signal for the continuation of said uptrend. This is because:

1. The lack of volume signals that whales are purposely limiting the supply and therefore forcing even small buys to have a significant influence in upwards momentum.
2. Lower supply means the thinning of sellers

Now for the counterargument. We've all heard statements like 'oh, this pump was without significant volume, therefore it is likely not to be sustainable'. The thinking behind this is

1. Big buys result in higher volume. This means more commitment in an uptrend (which is directly contradictory to the Wykoff method)
2. With Bitcoin's overall volume being very small compared to normal assets. Market manipulation often happens easily - so a breakout with low volume is easily 'painted' onto the charts. It could very well be a bull trap.

Now, it does seem that the 2nd line of thinking has been closer to what's happening compared to Wykoff's principles, or I am missing something?

The Wykof method is considered one of the best methods of technical analysis on Wall Street. In addition, there is hard evidence that this method works in most cases, the only point is that it's more suitable for the stock market, which is slower than the cryptocurrency.