What are the key components of the Wycoff schematic and how do they apply to cryptocurrency?

1 answers

• John TakerJul 14, 2023 · 2 years ago
  The Wycoff schematic is a popular framework used in technical analysis for cryptocurrency trading. It consists of four main components: accumulation, markup, distribution, and markdown. During the accumulation phase, smart money accumulates positions in a cryptocurrency, often at lower prices. The markup phase is characterized by a rapid increase in price, driven by increased demand. Distribution occurs when smart money starts selling their holdings, leading to a potential reversal or consolidation. Finally, the markdown phase is marked by a significant drop in price. By applying the Wycoff schematic to cryptocurrency trading, traders can gain insights into market trends and potentially make more informed investment decisions.
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