Recently, an investing buddy introduced me to the Wyckoff Effect. Chartists and technicians may have heard of Richard Wyckoff, but this name is unfamiliar to me.

Image by mohisinabbas from Steemit

Richard Demille Wyckoff (1873 - 1934) was a trader, educator and stock market authority in the early 1900s. He was an astute observer of market action, and had developed his own trading technique based on watching the stock price and volume. Wyckoff emphasized on identifying the accumulation and distribution of stock by "smart money" (i.e. financial institutions) and to ride the trend as it develops. There are two principles espoused by Wyckoff: The first principle states every market and security is unique and never behaves in the same way twice. Present price movement bears no resemblance to any pattern in the past; The second principle states since every price movement is unique, present price action...