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VaderDan
Expert TraderProfessional trader specializing in Candle Range Theory (CRT), Wyckoff Method, and institutional order flow analysis. Helping traders master prop firm challenges and develop consistent trading strategies.
The Three Wyckoff Laws Made Easy
Rule the Candle, Rule the Trade
INTRODUCTION
Most traders memorize indicators.
Wyckoff discovered laws.
Not opinions.
Not theories.
Laws.
These three laws explain every major market move.
LAW 1: SUPPLY AND DEMAND
When demand is greater than supply, price rises.
When supply is greater than demand, price falls.
This law controls everything.
If price is not moving up, demand is not strong enough.
If price is falling easily, supply is in control.
LAW 2: CAUSE AND EFFECT
Markets prepare before they move.
Sideways ranges are not random.
They are preparation zones.
The longer price stays in a range,
the bigger the move that follows.
LAW 3: EFFORT VS RESULT
Volume is effort.
Price movement is result.
If effort is high but result is small,
something is absorbing that effort.
This reveals hidden institutional activity.
WHY THESE LAWS MATTER
They stop you from guessing.
They teach you to interpret.
Wyckoff is not prediction.
It is understanding.
HOW TO APPLY THE THREE LAWS
Apply Law 1: Read Supply and Demand
Watch how price responds to levels. If price bounces strongly off support, demand is present. If price struggles to break resistance despite multiple attempts, supply is overwhelming.
Apply Law 2: Measure the Cause
When you see a sideways range, measure its width and duration. A wide, long-lasting range suggests a significant move is being prepared. Don't rush the breakout—let the cause build.
Apply Law 3: Compare Effort to Result
If you see high volume but minimal price movement, institutions are likely absorbing or distributing. This is your warning sign that the current trend may be ending.
CLOSING
These laws are always active.
You either learn them — or they use you.
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