Lesson / WY-01-03
The latest traded price on a chart may differ from the quotes at which one can buy or sell immediately. The best bid is the highest buying quote a seller can immediately accept; the best ask is the lowest selling quote a buyer can immediately accept. The distance between them is the bid-ask spread. This differs from a bar’s high-low price spread: the former is the price gap faced by immediate execution at one instant, while the latter is the distance between the highest and lowest executed prices over a period. The last traded price may remain unchanged while the best bid, best ask, and quantities at each level have already changed.
Course content is for learning and research only. It is not investment advice.
Read the Chapter ↗Timestamps
9 lessons · Chapter contents
01Supply and Demand↗02Matched Trades and Relative Supply-and-Demand Strength↗03The Continuous Double Auction: How Orders Form Prices↗04Judging Relative Strength through Progress and Obstruction↗05Location and Comparisons over Time↗06A Single Bar and a Single Breakout↗07Testing Supply-and-Demand Judgments with Subsequent Price Action↗08Stronger Demand and Reduced Supply Are Different Processes↗09Balance Is Not Stillness↗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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What the Wyckoff Method Studies
The Composite Operator Model and Strategic Interaction in Trading
