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Richard D. Wyckoff 1873—1934

Three Wyckoff laws

Supply and demand, cause and effect, effort versus result — the three laws governing price, volume and trading ranges.

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1. Supply and demand

Price follows the balance between supply and demand.

2. Cause and effect

Cause built in a trading range (P&F count) produces a proportional effect in the subsequent trend.

3. Effort versus result

Volume is effort; spread is result. Divergences warn of possible phase change.