Wyckoff Accumulation
Wyckoff is 40% of Ed's signal flow — the single biggest weight. A Phase C Spring = highest conviction on Go Maz.
Why Wyckoff Matters
It tells you where a stock is in its cycle. Institutions can't just buy 10 million shares at once — they accumulate quietly over weeks, creating recognizable patterns. If you can spot which phase a stock is in, you know whether to buy calls, buy puts, or wait.
Phase A — Stopping the Fall
The downtrend is losing steam. Smart money starts stepping in, but it's not over yet.
PS (Preliminary Support) — First buyers appear. The selling pressure starts to slow down, but it's not enough to stop the decline yet.
SC (Selling Climax) — Panic sell. Huge volume spike. Everyone who's going to bail has bailed. This is the capitulation moment.
AR (Automatic Rally) — Short covers bounce the price up. This sets the top of the trading range you'll watch for weeks.
ST (Secondary Test) — Price retests the SC low on lighter volume. If it holds, the bottom is confirmed. The range is set.
Phase B — Building the Cause
Sideways chop. This is the boring part — and it's supposed to be. Institutions are accumulating quietly, absorbing shares without pushing the price up. The longer Phase B lasts, the bigger the eventual move.
Patience. This phase can last weeks. Most traders get bored and leave. That's the point.
Phase C — The Spring
CALL entry #1 — highest conviction.
Price dips below support, triggers everyone's stop losses, then snaps back above support. The trap. This is institutions shaking out weak hands before the markup begins.
The Spring is your highest conviction CALL entry. You're buying right after the shakeout, before the real move starts. Volume on the dip should be light (no real selling pressure) and the snap-back should be quick.
Phase D — Markup Begins
The move is starting. Institutions are done accumulating and now they let the price run.
SOS (Sign of Strength) — Breakout above the trading range resistance on strong volume. This confirms the accumulation worked. The trend has changed.
BU/LPS (Back Up / Last Point of Support) — Price pulls back to test old resistance as new support. If it holds, this is CALL entry #2. Lower risk than the Spring because the trend is already confirmed.
Phase E — Full Trend
The run. The stock is trending up with higher highs and higher lows. Still tradeable, but the best entries are behind you. If you're already in from Phase C or D, this is where you ride the position.
For Put Traders
Wyckoff works in reverse too. When institutions are distributing (selling their positions), the pattern flips:
UTAD (Upthrust After Distribution) — The put trader's Spring. Price spikes above resistance, traps breakout buyers, then fails hard. This is the highest conviction PUT entry. Same concept as the Spring, just upside-down.
SOW (Sign of Weakness) — Breakdown below support on volume. Markdown is starting. The distribution version of SOS.
The Takeaway
Wyckoff is about reading what institutions are doing before the move happens. The Spring (Phase C) is the money shot for call buyers — it's the shakeout before markup. If you see a stock in a trading range with a quick dip below support that snaps back, that's your signal. It's 40% of Ed's scoring for a reason.