top of page

The Perfect example of Wyckoff's law "Cause and Effect" and Plutus identifying the cause!!!

Writer's picture: Panagiotis DiamantopoulosPanagiotis Diamantopoulos

This is a perfect example of Wyckoff's law "Cause and Effect". Let me explain how to read this:

  1. The first indication that something is cooking is the Abnormal Speed Index 26.3- Do you see any other 26.3 number in the up waves? The answer is "No", therefore something is cooking

  2. Down wave with few but wide bars that never break the low of the 26.3 wave.

  3. Plutus Long (PL) signal confirms the long entry

The larger the number of bars and volume on the 26.3 wave (Cause) the greater the pip move (the Effect).


I hope it is clear how you can use the power of Speed Index and Plutus to identify and justify Wyckoff's Law "Cause and Effect"





0 comments

Comments


bottom of page