TAPE READING AND ACTIVE TRADING

tape-reading-resize

Click here to download study guide

“He (or she) must study the various swings and know where the market and the various stocks stand.  One must recognize the inherent weakness or strength in the prices and understand the basis or logic of movements.  He (or she) should recognize the turning points of the market.”  — Richard D. Wyckoff

TABLE OF CONTENTS

INTRODUCTION

The Law of Supply & Demand
Stop Orders
The Immediate Trend
General Rules
Tape Reading and The Longer Swings

JUDGING THE IMMEDIATE TREND

The Use of the Wave Chart
Buying and Selling Waves
Judging Turning Points
Tape Reading and the Immediate Trend
Selecting Market Leaders

BUYING AND SELLING WAVES

Relationships of Waves
The Wave Chart
Detecting Critical Points
Selection of Leaders
How to Construct the Wave Chart
Support and Pressure
Price Trend
Activity
Volume
Volume and Activity Analysis
Increases in Activity
One-Point and Three-Point Figure Charts
How to Coordinate the Wave Chart
Selecting Market Leaders
The Law of Supply and Demand

TRADING AREAS AND HOW TO PROFIT FROM THEM

Ranges of 3 to 5 Points
Volume on Rallies and Reactions
Boundaries of Trading Ranges
Establishing a Position

THE TAPE READING CHART

The Tape Reading Chart
Three Vital Charts
Study of J. I. Case

HOW TO DETERMINE BUYING AND SELLING POINTS

The Wave Chart and the Market’s Technical Position
The Tape Reading Chart with the Wave Chart
Buying and Selling
Anticipation of a Change

JUDGING STRENGTH OR WEAKNESS BY HALF-WAY POINTS

Half-Way Points
Floating Supply Reduced
Disciplined Training

HOW TO KEEP THE PERCENTAGE IN ONE’S FAVOR

Stop Orders
Risk at 1/2 to 1 Point
Commissions and Overhead
The Law of Supply and Demand

TRADING ON INITIAL ACTIVITY

A Stock Becomes Active
The Tape Reading Chart
Vertical Line Charts

JUDGING THE MARKET BY TESTS AND RESPONSES

The Composite Operator
Testing Groups
Activity and Latent Buying Power
The Law of Supply and Demand

THE BEST STOCKS FOR ACTIVE TRADING

Primary Requirements
Secondary Requirements
Leadership
Volatile Issues

STOP ORDERS AND OTHER VITAL POINTS

The Use of Stop Orders
Judging Efficiency
Time Limits
Qualifications
Trading

CHART STUDIES

Phillip Morris Reaction Bottom May 16-18, 1973
Phillip Morris Rally Top May 22-24, 1973
Polaroid Reaction Bottom May 16-18, 1973
Polaroid Rally Top May 24, 1973
Xerox Reaction of March 23, 1973
IBM with Five Leaders May 16-25, 1973

RECORDED LECTURES

Philosophy
Wyckoff Method
Charts
Intra-Day Chart
Responsiveness
Stop Orders
Trading Positions – Markup
Trading Positions – Markdown
Trading Positions – Trading Ranges
Setting Up Shop

Click here to download study guide