Class 9 Wyckoff Trendlines

Trendline trade

connect two points make a trend line and find trades on each touch down

Wyckoff trendlines were not usually used by Umair as their strategies didnt need them but now they have added them again. It has two benefits. It can give

  1. Entry
    • Umair’s entry is usually volums based
  2. Target
    • target can also be calculated by structure

Umair abandoned it as previously ATH was broken in months but now a days ATH is broken very often and usually there is no structure on left to target. so they added this again in their strategies

Marking trend line

connect any two deep points. but starting from deepest is good.

First two consecutive swing lows are important

trendline would be from wick to wick. In VSA. Remember Wicks are not shown in line chart so we will use candle sticks

Valid/Invalid Trendline

Invalid if highs are not broken.
Valid as highest point between A and B is broken

Third Touch strategy

Wait for the third touch

Very good if third touch is at the same point of upper line. as support resistance confirmation is also added
Two confirmations

structure+trendline+fib confirmations. we add another volums based confirmation also.

for target clone the trend line to higher between A and B

usually target is achieved but if trend is at the end and close to reversal then possibility is price may return just before target

1H Time frame is good for this

Failed Example. retest wait is imp

Third Touch is after liq sweep

Target can be changed due to liq sweep or other factors so be tentative

Not valid as high doesnt break and 3rd touch is before high break. in this example third touch never happened

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