Wyckoff Method: Decoding Smart Money Accumulation

Ever wondered why stocks rally after you sell? Thats not bad luckits Smart Money accumulation. The Wyckoff Method reveals how institutions quietly trap retail investors before a big move.
Most traders chase breakouts or panic in corrections. But the real winnersinstitutions and hedge fundsoperate differently. Richard D. Wyckoff, a Wall Street legend from the early 1900s, cracked their code: the AccumulationMarkupDistributionMarkdown cycle.
Heres how Smart Money accumulation really works:
1?? The Selling Climax
Markets crash, panic selling dominates. Retail exits in fear, but institutions quietly absorb shares at bargain prices.
2?? Automatic Rally
After the panic, stocks bounce back sharply. This isnt a trend reversal yetits Smart Money testing if selling pressure is exhausted.
3?? Secondary Test
Price revisits lows but on lower volume. If supply is drying up, institutions know the stage is set.
4?? The Spring (Fake Breakdown)
A false move below support shakes out weak hands. Retail investors dump in fearexactly when Smart Money loads up.
5?? Sign of Strength (SOS)
The stock rallies on heavy volume, breaks resistance, and shows institutional footprints.
6?? The Markup Phase
Now comes the trend retail investors notice. By the time news headlines turn bullish, institutions are already sitting on gains.
7?? Distribution Markdown
After riding the uptrend, Smart Money sells into euphoria, leaving retail stuck at the top.

???? Whats the lesson?
Instead of chasing the news or waiting for confirmation, study price-volume behavior during accumulation ranges. Look for springs, declining supply, and sudden volume spikes. Thats where future rallies are born.

???? Bottom Line: The Wyckoff Method is not just historyits the playbook of Smart Money. Master it, and you stop being the exit liquidity.