Bull Market Trading Positions
When using the Nine Buying and Selling Tests, there are generally only six positions where all the tests will be passed. Three in an uptrend, and three in a down trend. In trading ranges, some of the tests may not be passed that require higher or lower bottoms and tops. Here are three Bull Market trading positions where all the tests will be passed, and as such are the safest trading positions of all. These should be the first ones you try to master. Once you show an ability to paper trade these positions profitably using Wyckoff’s 5 Step Method (which includes the Nine Buying and Selling Tests), then you should move towards actual trading with small commitments. Once you have mastered this, showing an average of two out of every three trades being profitable, with a 3:1 reward / risk ratio, you can start trading the more skilled oriented principles in the Trading Range. Here are the three Bull Market trading positions that you can trade.
1.Just as the uptrend is being defined (as with the SOS and LPS within the trading range).
2. As the Support Line is being tested (the next reaction or sideways movement to the Support Line after the LPS).
3. As the Support Line is being respected (anywhere in the uptrend).