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First Wyckoff Law:
1. The law of supply and demand determines the price direction. This principle is central to Wyckoff"s method of trading and
investing. When demand is greater than supply, prices rise, and when supply is greater than demand, prices fall. The trader/analyst can
study the balance between supply and demand by comparing price and volume bars over time. This law is deceptively simple, but learning
to accurately evaluate supply and demand on charts and to understand the implications of supply and demand patterns takes considerable
MC Trading developed Supply and Demand Tools that will display the Supply and/or Demand on any time based chart.
Two Dashboards, one using a proprietary algorithm to index the strength of Supply and Demand, directional strength
and Supply and Demand Volatility, displaying the data on an accumulating daily basis. The other Dashboard using the
same data, but displaying the information, using a bar by bar approach, with a recommended buy or sell signal. The
Supply and Demand Sentiment Tool measures the “Greed” and “Fear” of market participants using Supply and
Demand. These tools will substantially reduce your efforts in identifying Supply and Demand!
The daily-chart below illustrates how powerful the tools can be. The trade was entered on May the 17th and we exited the following day for a good profit. If we stayed in the position or re-enterd on the Buying and Selling pressure indications we would have been in on a roughly 12.000-point (or $6000) up move in 8 days.
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