Wyckoff phases A to E

What it is

Wyckoff ranges are split into five phases. Phase A stops the old trend: preliminary support or supply, a climax, the automatic rally or reaction, and a secondary test. Phase B builds the cause: price rotates inside the range, with tests of both edges, while large players build or unload positions. Phase C is the test: a spring below the range in accumulation or an upthrust after distribution (UTAD) above it. Phase D shows who won: signs of strength and last points of support (or weakness and supply) as price moves to the range edge and through it. Phase E is the trend out of the range: markup or markdown.

Schematic #1 includes the spring or UTAD. Schematic #2 has none; the phase C test simply holds inside the range, which makes the turn harder to see.

How to spot it

• Phase A: a sharp stop to a trend on heavy volume.
• Phase B: usually the longest phase, with overlapping swings.
• Phase C: a false break of one edge, quickly reversed.
• Phase D: swings start leaning one way and the range edge gives.

How to use it

• Work out which phase you're in before looking for a trade; the best Wyckoff entries come in phases C and D.
• Phase B is the hardest to trade; most Wyckoff traders wait it out.

Common mistakes

• Labelling phases before the range has finished; the labels are clearest in hindsight.
• Expecting every range to have a spring or UTAD.

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