Wyckoff Smart Money Concepts Full Course | Step By Step Tutorial

so what is wof the woff schematic is an accumulation process of how big entities or in woff terms the composition me enter the market huge Market orders commit increments to not upset the current state of the market and to avoid being predictable so again if the market only consisted of buying or selling it'll be too easy to make money it'll be too predictable so instead orders injected via accumulation process which would be your woff schematic and the wof is a part of the accumulation where we can read which is visible to our highs something that

we can predict we can predict a breakout going into Direction and enter the market pretty early so let's talk about the basic W off schematic so here you have your buying climax what is the buying climax the buying climax is the end of buying so let's say the market was previously bullish and this is where the buying orders come to an end and here comes an automatic rally the automatic rally confirms the buying climax why does it confirm the buying climax because it pulls away it shows a significant cell pressure coming in that means cell

orders are slowly starting to be accumulated here you have your test what is your test your test is a rejection from your bind climax in a simple schematic price rejects from your buying climax then comes your Purge what is your Purge that means the market drove price past your buying climax to take out any any sell orders that the retail Traders predicted so let's say somebody can anticipate that a market reversal is coming and they spotted the buying climax in the test they would try and take another entry post the test to the sell side

what the market would do is Trick you out One Last Time by going for your stop- losses which would be your Purge they would take out any liquidity resting above the B buying climax this would be your RTO your return to origin price retest the origin again one more fake out to induce Traders into taking a bullish Direction because they would look that price came back into the range and it drove back back up towards your Purge so a return to origin Here Comes Your Sign of weakness when structure breaks post your return orig this

shows that sell sell orders are coming in the market the selling pressure is starting to come in and this would be your sign of weakness a consolidation right before the breakout is your last point of support this is the last thing that must happen before price breaks out of your consolidation to fully convince you that price is going bearish and is no longer bullish so let's talk about the basic woff schematic in case you were confused with the first demonstration so here you have a bullish cycle again if this was to be considered your buying

climax the main thing here is it doesn't have to break your structure here that is not the confirmation for a buying climax the confirmation is that price reaches your discounted level what is your discount level it's your high and low breaking into four so if it reaches the bottom quarter then price reached a discount level so that could be the first clue that confirms that this is a buying climax now what's your second clue your second clue here would be the size of the move so the fact that the market was in a bullish Trend

you see this huge selling pressure and compare this cell move to all the previous moves to the downside so you had a cell move here you had a cell move here and you had another cell move here this move is much greater than all these pullbacks so that's the second clue that would indicate that this might be your buying Climax and of course when it comes to your right of schematic you're more than likely to predict the schematic perfectly in the later stages the earlier it is the more risky it is so here you have

your buying climax so now let's look at what happens next price would accumulate on the micro time frames and head for for your buying Climax and you'll find a rejection what does this rejection indicate it indicates that there was a rejection from the buy Climax that means that there was a supply level here that pushed price down and of course you had the smart money trap here which would be your inducement this move here is called your test now again you always want to think as a retail Trader if you're trading supply and demand Concepts

or even smart money Concepts this is where a lot of people's entry would have been they had their inducement and they had their Purge which went straight to a supply level which which would be your extreme order block so your rejection here anybody that sold price right here their stop losses would be right here they would be above the buying climax so what does this indicate this this shows that anybody that sold over here at this entry here there stop loss is here and of course the market doesn't want you to take advantage of the

entire move so let's say this is a reversal the market wouldn't want you to take advantage of 100 200 points it needs to come back and equalize you so now what happens next is price will reach for that test level via compression which will make Traders panic and then you would see an expansion taking out your buying climax so now this is another trap this trap here this trap here would be a trap for all your support and resistance Traders they would think that price is breaking out and what they would ideally look for is

price to continue to the bull side because they see a breakup structure but what does price do instead in your accumulation cycle price will come back into the range now when price comes back into the range this is a purge and again why is it called a purge it's a purge because it purged all the stop losses laying above your buying climax so anybody that sold here their stop losses were right here or even right here and the market comes back and purges them so now what happens next price comes back into your Purge what

do retail Traders think here they think that this here is a break of structure they think the purge was a breakup structure and price came to a demand Zone a demand order somewhere here inside or it could be a breaker so now this is another trap for buyers to get in a for Traders to get in a buy position and now they think price is going to continue higher why because it retraced and it broke structure even though they completely ignored everything that happened before this which is your wof schematic right so what happens next

price Rejects and breaks structure so when price breaks structure here price come back into the range and then rejects again this would be your sign of weakness why is this considered your sign of weakness and one second missed marking the RTO okay let's get back to this so why is this your sign of weakness because price came back into the previous range price came back to the previous Range found sell orders to reject and break structure again this shows that there is weakness coming in selling pressure is starting to pile up and it no longer

is in a buying profile so now before exiting your accumulation price will try its last trick which would be your last point of support your last point of support would be a consolidation back into the range and price will accumulate right here what is the purpose of this accumulation this is basically your last support this is the market trying to trick you one last time before going the intended way they're trying to make it seem that price came back into the range here price came back into this range here and then formed your micro range

and came back into a demand Zone and expanded again and they're trying to induce you into taking a long position why are they trying to do that because the direction has been set and price is going to continue is going to change direction and instead of going bullish now it's going bearish so this is their last attempt of stopping you so this is what we call our last point of support So once this accumulation is done price will continue to the bear side so here's an IN chart example for your basic wof schematic so here

you have your selling Climax and here you have your automatic rally again look at the move provided to you by the automatic rally the move to the bullish side was much greater than any previous move to the bullish side and it Formed your initial range so you're selling Climax and your automatic rally is what forms your initial range which later on leads to your rejection and your rejection is your test what happened during your test price was purchased price was purchased at an extreme demand level which would be your demand man micro order block and

anybody that purchase price here as far as retail Trader goes their stop losses go beneath so this is where their stop losses would be so later price comes through and purges after price purges price takes out all the liquidity of anybody that purchased price at the test so where their stop losses were it got purged so after The Purge price will come back into the range and reject from your Purge again again which would be your return to origin your return to origin is when price comes back after an expansion into your range to use

that so here's another example for a basic wof schematic so here you had your here you had your selling climax again what's the clue that gives it out here look at the buy move here compared to all the previous micro buy moves you had a micro buy moves all across the market on our bearish Trend so this is the first big move compared to these so what did you have next you had a rejection from our demand what does that mean that means if any body bought here where would their stop losses be it would

be beneath the selling climax so once this happens you can anticipate a purge so now that the purge occurred you can of course try and find the entry within your micro micros of your Purge so on the lower time frame of your Purge or you could wait for your RTO now where would the RTO be your RTO would be returning back to origin and next thing you want to look at is your order blocks any demand level that crosses or inside of your Purge this demand order block crosses within your Purge zone so let's say

this is your Purge of of course the highest quality would be right back at The Purge but if it crosses within your Purge that's completely fine so here you have your Purge and this order block this demand order block here crosses with your Purge so you'll be looking for an entry here let's talk about the advanced Wu schematic so same thing so far you have your buying Climax and you have your automatic rally but the main difference here is instead of rejecting from your buying climax extreme price will stop hunting run it through and then

come back inside of the range but this wouldn't be your Purge this would still be your test why wouldn't it be your uh Purge instead of a test because price needs to test first so the fact that it didn't react from the climax and went over it purged it and came right back in this is still considered a test and later on price will still be incentivized to run through that test and come back in range and properly Purge to then continue lower so let's go over the advanced woff schematic so again let's say you

have your bullish structure and you had your climax had your buying climax here and price rejected so now instead of rejecting from so now instead of rejecting from your buy Climax here to form what we would say a test and then continue lower to later on Purge price would run through it what did that do here that took out all the supply and demand Traders so now that all the supply and demand Traders are taken out price comes back inside of the range so what happens when price comes back inside of the range when happens

out of the range now you have your test but not only you have your test you have a fake Purge a fake stop hunt a fake uh turtle soup or whatever you want to call it so now you have a fake Purge here so what does this do this now is a trap for all this is a trap for majority of smart money concept Traders why because now smart money concept Traders anticipate a return to origin to then take price lower but what happens instead price takes out that test and then comes down forming your

what your actual Purge so now when price does return to the actual Purge price will reject and continue lower so here's an inart example for your Advanced wof schematic so here you have your selling Climax and look at the move to the bull side from your selling climax compared to the previous move to the bull side this move is much greater here's your automatic rally but look at your test your test did not reject from the extreme so if you pull out your extreme you would have been initially looking for a rejection somewhere here and

even though price did try and reject as you can see through this Wick price went lower so what are you waiting for now we're waiting for our test to be taken out because this is now a fake RTO so price does come down low takes out that test and comes back into the range now this is your Purge now what you're waiting for is your RTO so before we can anticipate the direction of our wof schematic we need to understand structure and we're going to go over this really quick since since I covered this in

previous videos so here you have your supply and demand structure so supply and demand structure is when price breaks structure here and then comes back inside of the range which would be your previous range same with your second phase price break structure then comes back inside of the initial range and whether it reaches your discount level whether it reaches your discount level here or reaches your 50% as long as it comes back inside of the previous range which would be your previous high and low this will be counted as your supply and demand structure again

one more time this is called your supply and demand structure price forms a swing breaks That Swing after it breaks that swing it comes back in inside of the Swing to find more buy orders to continue higher and same thing the opposite direction let's say it was a bearish market price break structure here instead of continuing lower price comes back and looks for orders within your range which is your swing high and your swing low price finds more cell orders break structure again comes back inside of the range finds more soell orders within your range

and then continues lower and so on so on this would be your supply and demand structure this is very important as we continue so now let's go over our support and resistance structure support and resistance structure is basically this would be your support and resistance structure what is the difference between the support and resistance structure and the supply and demand is the fact that when price breaks structure it does not come back inside of the range it rejects from the peak of the range or rejects right above same with here price break structure but Rejects

at your Peak price break structure and rejects before or at your Peak it does not come back inside of the range so the main difference here is in a supply and demand structure once price breaks and it has to come back inside of your range to continue higher but when it comes to your support and resistance price does not have to come back in a Range when Once price breaks structure here and this is your existing range price does not have to come inside here price can just reject from the peak so here's an example

of a macro and a micro supply and demand structure as you can see here on the macro price is rejecting from your supply Zone and you can see the same thing duplicate on your micro so what happened here is basically a mirror reflection of this so to optimize your woff strategy you would want to trade within a Direction so let's say once price approaches your de uh Supply level right here you would want to look for a bearish wof schematic here as price drops down you would want to look for a bearish schematic here when

price is out of the range as you can see here so let's [Music] say as you can see price isn't a supply and demand structure but price came out of the structure and price is below the structure so what you have as a reference point is price price is previously moving in a supply and demand structure so what you can anticipate is for price to pop back in So a reflection here would be price came out of the range once price comes out of the range and comes back inside of the range you're looking for

a bullish woff schematic to take price back to your supply level right here so that's how you would optimize it so right here you're looking for a bullish schematic once price expands again you're still looking for a bullish schematic but once price rejects from your extreme Supply you're starting to look for a bearish w up schematic until price reaches this level why because as you can see a reflection up here price is moving in a bearish supply and demand structure so let's go over this one more time so let's say this is current price action

what do you see here first thing you want to do is you want to locate your range so this would be your low and this would be your previous high now price came back inside of the range let's say price is somewhere right here where what are you looking for let's say previously to this Price is bearish Right Price is bearish so what are you looking for first thing you can anticipate is if you pull out your high and low you can mark your extreme zones which in this case you're mostly focused on your supply

Zone so you know that price is targeting this level or at least aiming to Target this level so if you are looking for a schematic you would be looking for a bullish schematic so let's say price expands here then gives you a climax test comes up purchase then retraces back to an RTO then expense this would be your entry and you're holding the trade until here once price get to here now you're starting to look for a bearish woff schematic so let's say a test test right here a purge RTO and you're trying to take

price all the way back down to right here why are you trying to take it down here because the micro the macro structure is bearish this is the structure so let's take a look at this chart example so what do you see here on your macro time frame in this instance this is our 12h hour so what we are seeing here is clear bearish structure we can see a reversal occurred here price broke structure came back to an extreme and now broke structure so now that we have this clue we can anticipate the next move

to be a supply move and price moving in a supply and demand profile structure so what we do know is this is our low and this is our high and you always have to work with the clues that you currently have so this is your low this is your high so now you want to Mark out your premium level because you're anticipating a reversal here so now that you have your level you want to go on your micro time frames so in this case would be the 1 hour so what we want to see we

want to see a either a bullish schematic which in this case it already occurred right if you go on the super micro time frame which would be in this case we would go to the 15minute you can see that what occurred here was you had a climax you had a test right here you had a stop hunt you had a breakup structure you had a return to origin and an expansion of course your entry could be at your return to origin or once price breaks out that retest back this is where your last point of

support happens so this already occurred so what are you looking for now you want to ride the trend you want to be in line with the trend and the overall trend is bearish like we said on the macro so we are looking for a wup schematic to occur but it has to make contact with our premium level and again I'm not against going counter Trend because a bullish schematic did present itself here and you can trade all the way from here to here or from here to back down here so either way I'm not against

going counter trend of course the probability are more in your favor when it is in line with the trend but nevertheless a bullish trade here would still be a good trade so let's look for a schematic first thing we want is a valid test so now what you do you mark out since you have a strong move to the downside you want to see if price rejects from this level if price does reject from this level now we can count this as a test price broke through this level so we still wouldn't consider this a

test and the reason is because it's still if if a purge does occur we would want the purge to occur closer to our premium prum range we're still in the equilibrium so let's see now what we're looking at is if price is going to stop on this level and come back inside of the range okay now we have a valid test now we have a test here so now we can anticipate a stop hunt preferably for our stop hunt to happen somewhere here or at least get close by it doesn't have to make direct contact

but at least close by at least take out this external level right here see if price comes back into the range okay price makes contact and comes back inside of the range so now what we're looking for is a return origin so again let me just mark it out we have our buying climax right here we have a test here and we have our Purge right here so what we are looking for now is a return to origin of course this entire thing is our Purge right now and our return origin should be an order

block inside of uh The Purge or crossing by this is the only order block available so you're looking to take a rejection trade from this Supply level all the way back down to right here why because remember on the macro this is occurring and we're trying to take price below this level so we can take price back into this level and so on so on just basic Market structure no need to waste a lot of time in this so now you have your rejection and this is where your trade was and your TP is right

here and if you look on the macro this is what happened exactly what I explained previously as far as the macro goes the macro structure is you had the reversal price came down rejected from a supply level that means the next move is more than likely to be from a supply level have a rejection here price going to go down and now you're still looking for price to maybe form a bullish wof schematic to take price back inside of the range and then maybe a bearish schematic here so this is the highest probability way to

use your woff schematic so the question here is how do you differentiate if you're looking for a simple woff schematic to an advanced so the easiest way to do this and it's not a as hard as you think first thing is let's see let's say this is your buying climax right this is your buying climax now price took out your uh buying Climax and then came back inside of the range so now you would think this is your test so so far you're right this is your test now what you're looking for is for price

to take out that test because we know the next step is The Purge but let's say price drops a little bit and then comes up here and rejects what does this mean that means that this is no longer your test because price did not run through it if this was a test price would just price would if this was like an actual test then price would take this test out and commit your Purge and then come back inside and sell the other direction but the fact that price comes up here and rejects that means that

now this is no longer your test this would be your buying Climax and now this is your test because of the rejection so now what you're waiting for is for price to purge your buying climax so initially you thought this was a advanced woff schematic but once price proved itself once price didn't take out uh your your previous is test and rejected from the internal test now you know we're back to our simple schematic and now you're waiting for price to take this level out take your B climax out return to origin show you sign

of weakness consolidate and drop so let's go over this one more time and let's go over this using our path so so far you think this is a uh buying climax so far you think this is your buying climax now price takes this level out once price takes take this level out and comes back inside of the range what are you thinking you're thinking this is an advanced an advanced wof schematic so this would be our buying Climax and this would be your test so this is what you think so far now let's say price

doesn't take out this level and and Purge it right let's say price rejects instead of taking and this is where the clue is so let's say price comes to the extreme of your test and rejects so now what does that mean that means that this is no longer your test because if it was your test price would have took this level out so now now this is your test this is your buying climax so for your RTO entry or your last point of support entry or even your sign of weakness entry this context really matters

because you're waiting for the right time and what you're waiting for mostly is your Purge so now you can wait for price to take your buying climax out come back inside the range return to origin break structure retrace find more orders show you that sign of weakness consolidate and drop and of course your entries could always be your entry could be that RTO right here another entry could be your sign of weakness and you can have another entry as a retracement with your uh last point of support so here's an example of support and resistance

structure when it comes to the macro and your micro so it's basically the same concept as our supply and demand structure so you're looking to trade in line so again you're focusing on the Range everything comes back to the range focusing on the Range the only difference in a support resistance Market is that price does not come back deep inside of the range right so what I mean is let's say price break structure right here and now this is your range price does not come back deep inside the r range it will just get to

the line or a little bit above it and then reverse so this would be a support resistance market and you can see it here on the micro right so this in this case this would be your low and this would be your high price breaks rejects once price rejects now you can say the previous low is your low and the previous uh uh the current high is your high and when price comes back down you're waiting for a reaction from your support resistance line so it's exactly the same concept we use in the previous chapter

when we talked about supply and demand and how to find order blocks in a supply and demand uh not order blocks woff in a supply and demand Market it's the same thing here just the only difference is you're looking for your W off to occur in line with the trend just like the previous one but the only difference is you're looking for your W off to occur at the line right right outside of the range you would want your Purge to make contact with the previous range not a deep contact where price goes to the

equilibrium here or even goes to your premium level here you just you just want contact with the previous range and I'm going to cover this all the way at the end when I cover my live tradeing so another way you can use your wof schematic is to use it as an entry confirmation so let's say you have a discounted order block here so let's say in this case this is the 1 hour you would go on your micro where you can see clear delivery which would be let's say the 5 minute or the 1 minute

or maybe even the 3 minute and you would want to see a wof schematic form as price approaches your or order block right so you want to see a climax you want to see a test and then you want price to take that out and then return the origin and your entry would be at your return to origin this way you can confirm your order block but the only bad side here is a lot of lot of times this doesn't happen right A lot of times as you guys know and we always talk about this

the clear the clear reaction for a high quality order block is usually price will approach this level compress go for a stop hunt and then continue the opposite way a lot of times you won't get a wof schematic here but if that's if you're comfortable trading wof schematics you should try out the wof confirmation method so as a bonus I'm going to review the huge trade I had this week so what made this trade really high probability for me is first of all look at my selling climax here my selling climax here look at the

down move not only price had a significant push down all the way down here it broke structure after a compression so this was really huge as far as the fact that price broke structure and even though it broke structure it never rejected Ed at my current test and the small micro rejections here showed the price did want to initially continue lower but failed so when price actually did Purge and came back into the range all I had to do was wait for the return to origin and the price came and purged the previous structure and

this is very similar to my etm trade my signature trade when price comes out of the range and comes back inside of range and that's where the purge occurs so this was our previous range right this was the high and this was the low and once price broke structure it did retest it here but then continued lower but when this purged occurred it came back into the previous range so that was the second clue so again my Purge happened within the previous range and if you look at the previous the previous structure when you go

on the macro time frames price is bearish right and if you look even closer it took out a major Mac micro structure so this is hanging out at the bottom so the fact that this purged happened at two time frames which happened on my micro outside of my micro micro range it also happened outside of the macro range and these trades don't happen that often they only happen once a month but when they do happen they're extremely high probability I would say somewhere in the 75 to the 80% strike rate so when it does happen

you kind of have to go heavy and that's why I went heavier than usual as far as my lot size is concerned but again and this is very similar to wof and a lot of the wof um Concepts were used here of course my climax here my Purge and my return my entry was at my return to origin if you enjoyed this video make sure you like share and subscribe and make sure you follow me on Instagram and make sure you visit our website