[ WYCKOFF METHOD — SCHEMATICS #1 ]
Accumulation & Distribution
Events and Phases
Hover over any event dot for a full explanation — RisePrecision Mentorship Program
▸ Accumulation Schematic #1 — What You're Looking At
Price enters the range from a downtrend. The Composite Man absorbs supply through five phases: A (stops the downtrend: PS → SC → AR → ST), B (builds cause through oscillation, including an ST in Phase B near support), C (the Spring shakeout and its Test on support), D (demand confirms: SOS — the first strong push above resistance — then LPS retracement onto the broken resistance, now support), and E (markup begins).
PS — Phase A
Preliminary Support
First institutional buying in the downtrend. Volume rises. Downtrend begins to slow but is not yet over — a lower low (the SC) still comes.
SC — Phase A
Selling Climax
The capitulation bottom. Wide range red bar on maximum volume. Composite Man absorbs panic. Price snaps back — range floor is set.
AR — Phase A
Automatic Rally
Easy bounce off the SC low as supply is depleted. Establishes the range ceiling. Volume usually lighter than SC.
ST — Phase A
Secondary Test
A lower-volume test of the SC area. Holds at or slightly above the SC low. Confirms selling is drying up and closes out Phase A.
ST in B — Phase B
Secondary Test in Phase B
Test during the long Phase B oscillation back toward the SC/AR support area. Volume contracts — shaking out weaker hands while cause is built.
SPRING — Phase C
The Spring ⚡
Fake breakdown below range support. Triggers stops. Composite Man buys at discount. Price recovers above support on the same bar or soon after.
TEST — Phase C
Test of the Spring
Low-volume retest that holds AT the support line. Higher low — confirms no supply remains. Phase D can begin.
SOS — Phase D
Sign of Strength
The first wide-spread, high-volume up move that closes well ABOVE the old resistance. Demand overwhelms supply — Markup is confirmed.
LPS — Phase D
Last Point of Support ★
After SOS, price RETRACES back to the broken resistance — now acting as support. Higher low on low volume. Polarity flip confirmed — textbook long-entry before the Markup continues.
▸ Distribution Schematic #1 — What You're Looking At
Price enters the range from an uptrend. The Composite Man distributes supply through five phases: A (stops the uptrend: PSY → BC → AR → ST), B (range-bound cause-building including UT and SOW in Phase B), C (the UTAD upthrust and its Test — a lower high that fails to reach the UTAD), D (supply confirms: SOW breakdown below support → LPSY weak bounce to the underside of broken support), and E (markdown begins).
PSY — Phase A
Preliminary Supply
First institutional selling in the uptrend. Volume rises, price action becomes labored. Uptrend is not yet over — but smart money is distributing.
BC — Phase A
Buying Climax
The euphoria top. Wide green bar on maximum volume. Composite Man sells into the frenzy. Price drops sharply afterward.
AR — Phase A
Automatic Reaction
Drop after BC as demand exhausts. Establishes the floor of the distribution range.
ST — Phase A
Secondary Test
Rally back toward BC on lower volume. Fails to reach the high. Confirms the BC was the true top.
UT — Phase B
Upthrust (in Phase B)
A sharp rally that pokes above resistance but fails to hold. Minor shakeout of shorts — an early warning that supply is winning.
SOW in B — Phase B
Sign of Weakness in Phase B
Dip below range support on higher volume that fails to follow through. Early supply signature before Phase C.
UTAD — Phase C
Upthrust After Distribution ⚡
The mirror of the Spring. Fake breakout above resistance that traps breakout buyers and squeezes shorts. Composite Man sells into FOMO. Price reverses back below resistance.
TEST — Phase C
Test of the UTAD
Rally back toward the UTAD high that fails at a LOWER HIGH near resistance. Demand is exhausted. Closes out Phase C.
SOW — Phase D
Sign of Weakness
Wide-spread, high-volume down bar breaking below support. Mirror of the SOS — Markdown is confirmed.
LPSY — Phase D
Last Point of Supply ★
The 'hope rally' after SOW — weak bounce to the underside of broken support, then rolls over. Premium short-entry before the Markdown.
01
[ Phase 1 of 4 ]
Accumulation
The Composite Man secretly BUYS at low prices. Price moves sideways, giving nothing away. Retail traders think the market is dead. The longer the range — the bigger the eventual move.
Bottom of a downtrend
Sideways range at low levels
Springs and shakeouts visible
Volume decreasing over time
02
[ Phase 2 of 4 ]
Markup
Accumulation is complete. The Composite Man pushes price UP. Retail traders see the breakout and pile in. He rides the position while latecomers provide the fuel for his exit later.
Higher highs + higher lows
Strong directional candles
Shallow pullbacks (re-accum)
Expanding volume on up-moves
03
[ Phase 3 of 4 ]
Distribution
The Composite Man secretly SELLS at high prices. Looks bullish — everyone is excited. He transfers his position to retail buyers. The stage is set for the collapse. Most dangerous zone for retail.
Top of an uptrend
Sideways range at high levels
UTAD traps breakout buyers
Volume high on down-moves
04
[ Phase 4 of 4 ]
Markdown
Distribution is complete. Price falls hard. Retail traders are trapped long from the top. Each "hope rally" fails at a lower high. The Composite Man is out — or short. Cycle resets at the bottom.
Lower highs + lower lows
Hope rallies that fail
Panic selling at lows
New Accumulation builds at bottom
[ MULTI-TIMEFRAME RULE ]
MONTHLY
Macro Phase
Bull or Bear Market?
Bull or Bear Market?
WEEKLY
Intermediate Phase
Trend vs correction?
Trend vs correction?
DAILY
Current Phase
Where within the cycle?
Where within the cycle?
4H / 1H
Entry Context
Trigger timeframe
Trigger timeframe
▸ RULE: Always start from the HIGHEST timeframe. Never trade against the higher-timeframe phase.
[ LAW 01 ]
Supply &
Demand
Demand
Demand > Supply → Price ↑
Supply > Demand → Price ↓
Supply = Demand → Sideways
Supply > Demand → Price ↓
Supply = Demand → Sideways
The most fundamental law. Price moves because of an imbalance between buyers (demand) and sellers (supply). The Composite Man can CREATE the appearance of supply or demand to trap retail traders.
"Bottled water during a hurricane. Supply drops, demand spikes — price triples. The Composite Man controls both sides."
[ LAW 02 ]
Cause &
Effect
Effect
Large accumulation → Large markup
Small range → Small move
Cause (range) = Effect (trend)
Small range → Small move
Cause (range) = Effect (trend)
You cannot get a big move without a big cause. The SIZE of the accumulation or distribution range directly determines how far price will travel in the subsequent trend. The market cannot lie about cause.
"A small push moves a car a few feet. 20 people pushing for 100 meters — it rolls for a long way. The range is the push."
[ LAW 03 ]
Effort vs
Result
Result
Volume = EFFORT
Price movement = RESULT
Harmony → trend continues
Divergence → reversal signal
Price movement = RESULT
Harmony → trend continues
Divergence → reversal signal
Watch volume vs price spread on every candle. High volume + small candle = absorption (opposing force is strong). High volume + big candle = dominance (trend is real). The mismatch is the signal.
"Pushing a box with max effort but it barely moves — something is blocking it. In trading, that 'wall' is the Composite Man."
[ RISEPRECISION — WYCKOFF METHODOLOGY ]
The Composite Man
A mental model representing all large institutions, banks, and professional traders who collectively control market direction. His plan is always the same — executed with precision, patience, and deception.
🏦
[ Phase 1 ]
Secretly accumulating at low prices while retail fears the market
📈
[ Phase 2 ]
Marks price up to attract retail buyers as his exit audience
🎭
[ Phase 3 ]
Distributes at high prices while creating FOMO and excitement
📉
[ Phase 4 ]
Allows price to fall. May short. Retail is trapped and panicking
"All the fluctuations in the market and in all the various stocks should be studied as if they were the result of one man's operations. Let us call him the Composite Man, who, in theory, sits behind the scenes and manipulates the stocks to your disadvantage if you do not understand the game as he plays it."
— Richard D. Wyckoff[ THE 5 TOOLS OF THE COMPOSITE MAN ]
Spring / Shakeout
Pushes price below support to trigger stop-losses. Buys the panic. Price snaps back. Retail thinks they got "stopped out on a fake break."
UTAD
Pushes price above resistance to trigger breakout buyers. Sells into their excitement. Price reverses. Retail thinks they bought a breakout — they bought the top.
The Test
After a Spring or UTAD, re-tests the area on low volume to confirm there's no opposition remaining. Like testing ice before walking on it.
Absorption
High volume + small price movement = absorbing the opposing side. Soaking up all the supply (or demand) so nothing can stop the next move.
SOS / SOW
Shows his hand — strong directional move that confirms the accumulation/distribution is complete. This is the signal that the next phase has begun.