THREE LOW OF WYCKOFF METHOD :-
Wyckoff’s chart-based methodology rests on three fundamental “laws” that affect many aspects of analysis. These include determining the market’s current and potential future directional bias, selecting the best stocks/coins to trade long or short, identifying the readiness of a stock/coin to leave a trading range and projecting price targets in a trend from a stock/coin’s behavior in a trading range. These laws inform the analysis of every chart and the selection of every stock/coin to trade.

1. THE LOW 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 bar charts, as well as understanding the implications of supply and demand patterns, takes considerable practice.

2. THE LAW OF CAUSE AND EFFECT :-
It helps the trader and investor set price objectives by gauging the potential extent of a trend emerging from a trading range. Wyckoff’s “cause” can be measured by the horizontal point count in a Point and Figure chart, while the “effect” is the distance price moves corresponding to the point count. This law’s operation can be seen as the force of accumulation or distribution within a trading range, as well as how this force works itself out in a subsequent trend or movement up or down. Point and Figure chart counts are used to measure a cause and project the extent of its effect

3. THE LAW OF EFFORT :-
The law of effort versus result provides an early warning of a possible change in trend in the near future. Divergences between volume and price often signal a change in the direction of a price trend. For example, when there are several high-volume (large effort) but narrow-range price bars after a substantial rally, with the price failing to make a new high (little or no result), this suggests that big interests are unloading shares in anticipation of a change in trend.

Weakest among reaccumulation types, Decline usually starts from a small local distribution pattern. Flat or sloping down formation, It can potentially have a few lower lows with a spring being the lowest point of the TR, Leading BTC can exhibit short-term weakness after strength in this formation Flat or sloping down formation, It can potentially have a few lower lows with a spring being the lowest point of the TR, Leading btc can exhibit short-term weakness after strength in this formation.

PS :—
preliminary support , where substantial buying begins to provide pronounced support after a prolonged down-move. Volume increases and price spread widens, signaling that the down-move may be approaching its end.

SC :—
selling climax , the point at which widening spread and selling pressure usually climaxes and heavy or panicky selling by the public is being absorbed by larger professional interests at or near a bottom. Often price will close well off the low in a SC , reflecting the buying by these large interests.

AR :—
automatic rally , which occurs because intense selling pressure has greatly diminished. A wave of buying easily pushes prices up; this is further fueled by short covering. The high of this rally will help define the upper boundary of an accumulation TR.

ST :—
secondary test , in which price revisits the area of the SC to test the supply/demand balance atthese levels. If a bottom is to be confirmed, volume and price spread should be significantly diminished as the market approaches support in the area of the SC . It is common to have multiple STs after a SC .

TEST :—
Large operators always test the market for supply throughout a TR (e.g., STs and springs) and at key points during a price advance. If considerable supply emerges on a test, the market is often not ready to be marked up. A spring is often followed by one or more tests; a successful test (indicating that further price increases will follow) typically makes a higher low on lesser volume .

SOS :—
sign of strength , a price advance on increasing spread and relatively higher volume . Often a SOS takes place after a spring , validating the analyst’s interpretation of that prior action.

LPS :—
last point of support, the low point of a reaction or pullback after a SOS. Backing up to an LPS means a pullback to support that was formerly resistance, on diminished spread and volume . On some charts, there may be more than one LPS , despite the ostensibly singular precision of this term.

BU :—
back-up. This term is short-hand for a colorful metaphor coined by Robert Evans, one of the leading teachers of the Wyckoff method from the 1930s to the 1960s. Evans analogized the SOS to a “jump across the creek” of price resistance, and the “back up to the creek” represented both
short-term profit-taking and a test for additional supply around the area of resistance. A back-up is a common structural element preceding a more substantial price mark-up, and can take on a variety of forms, including a simple pullback or a new TR at a higher level.

SPRING :-
Springs or shakeouts usually occur late within a TR and allow the stock’s dominant players to make a definitive test of available supply before a markup campaign unfolds. A “spring” takes price below the low of the TR and then reverses to close within the TR; this action allows large interests to mislead the public about the future trend direction and to acquire additional shares at bargain prices. A terminal shakeout at the end of an accumulation TR is like a spring on steroids. Shakeouts may also occur once a price advance has started, with rapid downward movement intended to induce retail traders and investors in long positions to sell their shares to large operators. However, springs and terminal shakeouts are not required elements: Accumulation Schematic 1 depicts a spring , while Accumulation Schematic 2 shows a TR without a spring .