Cosmos (ATOM) Wyckoff Analysis (May 2022 – Dec 2023)
22 Diciembre 2023 - 1:10PM
NEWSBTC
Wyckoff Analysis (WA) aims to understand why prices of stocks and
other market items move due to supply and demand dynamics. It
typically is applied to any freely traded market where larger or
institutional traders operate (commodities, bonds, currencies,
etc.). In this article we will apply WA to the cryptocurrency
Cosmos ($ATOM) to make a forecast for approximate future events.
Cosmos Price Data from MEXC Futures | Source: ATOMUSDT.P on
tradingview.com. Link to the raw image:
https://www.tradingview.com/x/r8asKWOI Cosmos $ATOM is currently in
Phase D of a Wyckoff Accumulation Schematic #1. Note the volume
spike near where I placed the SC and Spring. In Wyckoff Analysis
these typically must align even if the overall form isn’t perfect.
The only slight anomaly is that the ST dips sharply below the SC
breaking the ICE (not labeled). There are Advanced Schematics that
you can find online that accommodate many of these anomalous
formations. Phase D is where demand greatly overcomes supply
leading the rallies on higher (or noticeably increasing) volume.
When an LPS occurs that is typically a favorable (even optimal)
place for a long position. It recently finished a Reaccumulation,
to which it’s rallying sharply. Below are the typical schematics
for both Wyckoff Accumulation Schematic #1 and a Reaccumulation for
reference. Wyckoff Accumulation Schematic #1 | Source:
StockCharts.com Wyckoff Reaccumulation Schematic | Source:
StockCharts.com Related Reading: Cosmos (ATOM) Elliott Wave Summary
(2019 – 2023) Cosmos Price Targets The basic target (per the
schematic) is the top of the trading range. In this case it’s at
$18, but $15 is a preliminary target it must concretely clear
first. Doing some more work using the Horizontal Count method with
PnF charts yields different results. My settings are currently a
$0.25 box size and a three box reversal on a High-Low lookback.
When using the Horizontal Count method Extended Congestions need to
be accounted for differently. The main thing is finding the
relevant column in and out to create the Congestion Box. In our
case that’s from 13 to 20 December 2023 spanning 7 bars. Since this
is a Reaccumulation “breakout” we will need to add the value from
the formula the Horizontal Count uses. 7 x $0.25 x 3 = $5.25 The
relevant low to add this to is $10.25 so the PnF target is $15.5.
Related Reading: Cosmos Co-Founder’s Controversial Proposal
Triggers 11% Plunge In ATOM Glossary All quotes are from the first
link in Supplemental Reading. Preliminary Support (PS) – “where
substantial buying begins to provide pronounced support after a
prolonged down-move” Selling Climax (SC) – “the point at which
widening spread and selling pressure usually climaxes and heavy or
panicky selling by the public is being absorbed by larger
professional interests at or near a bottom” Automatic Rally (AR) –
“occurs because intense selling pressure has greatly diminished”
Secondary Test (ST) – when “price revisits the area of the SC to
test the supply/demand balance at these levels” Spring – “allow the
stock’s dominant players to make a definitive test of available
supply before a markup campaign unfolds” Test – where larger
traders “test the market for supply throughout a TR” Sign of
Strength (SoS) – “a price advance on increasing spread and
relatively higher volume” Last Point of Support (LPS) – “a pullback
to support that was formerly resistance, on diminished spread and
volume” Back Up (BU) – “a common structural element preceding a
more substantial price mark-up, and can take on a variety of forms,
including a simple pullback or a new TR at a higher level” Related
Reading: Cosmos, Polkadot, and Tradecurve Markets Top The Crypto
Charts, Bulls Are Confident on Their Future Supplemental Reading
“The Wyckoff Method: A Tutorial” by Bogomazov & Lipsett
“Reaccumulation Review” by Bruce Fraser (2018) “Jumping the Creek:
A Review” by Bruce Fraser (2018) “Distribution Review” by Bruce
Fraser (2018) “Introduction to Point & Figure Charts” from
StockCharts “P&F Price Objectives: Horizontal Counts” from
StockCharts “The Wyckoff Methodology in Depth” by Rubén
Villahermosa (2019) “Wyckoff 2.0: Structures, Volume Profile and
Order Flow” by Rubén Villahermosa (2021) Featured image from
learn.swyftx.com. Charts from tradingview.com.
OKB (COIN:OKBUSD)
Gráfica de Acción Histórica
De Nov 2024 a Dic 2024
OKB (COIN:OKBUSD)
Gráfica de Acción Histórica
De Dic 2023 a Dic 2024