Lesson / WY-A-1
Range reversion requires clear boundaries on the trading timeframe, no retained new traded area after an outside probe, and a return inside. Range boundaries come from reaction highs/lows, VAH/VAL from a volume-coverage algorithm; they may coincide or differ greatly. In possible accumulation, a breakdown first tests supply willing to keep trading lower outside. Rapid recovery shows outside conditions did not persist; later demand progress or a holding retest further weakens the brief-rally-only explanation. The long rationale is directional change after a failed breakdown. The old fixed profile merely identifies bands likely to be encountered inside. Progress toward old POC is possible, but POC is not mandatory. New selling en route still requires management from current evidence. A renewed accepted exit below structural support restores the breakdown explanation and invalidates reversion.
Course content is for learning and research only. It is not investment advice.
Read the Chapter ↗Timestamps
6 lessons · Chapter contents
01I. Understanding Trade Location Through the Auction Process↗02II. Sample Scope and Calculation Methods↗03III. Calculating POC, Value Area, and Nodes↗04IV. Profile Shape Describes Results Only↗05V. Integrating Profile with Wyckoff Structure↗06VI. Four Common Trading Scenarios↗Observe the market: start with context and place price within its structure.
Understand structure: compare supply and demand, and let evidence support or revise your hypothesis.
Form a view: define risk limits and know when to reassess.
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