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Richard D. Wyckoff 1873—1934

P&F cause count (Wyckoff)

Wyckoff procedure to measure cause in a trading range with a horizontal Point & Figure count and project the minimum target.

On this page

Who this entry is for — How Wyckoff turns a trading range into a measurable price objective — step 3 of the five steps.

Source: Wyckoff Analytics, P&F Count Guide; Wyckoff Stock Market Institute.

Prerequisites

Point & Figure, Trading range, Cause/effect law.

Principle

In plain terms — The «fuller» the range is on the P&F chart, the farther price can travel when it leaves — if accumulation or distribution is valid.

  1. Cause — horizontal P&F columns in the trading range
  2. Effect — vertical projection from the breakout
  3. Output = minimum target, not a guaranteed ceiling
P&F count — cause and effect Horizontal count in range → minimum target on linear chart Trading range → horizontal count O X X O X X O X X O 10 columns = cause Effect Wyckoff uses P&F as a ruler — judgment stays on context. Cyclepedia diagram · Emiciclo
Cause in the range → projected effect.

Setup

Parameter Choice
Box size Proportional to price (e.g. €0.50–1 on low-priced stocks; €5 on stocks >€200)
Reversal Typically 3-box
Side-by-side charts Bar chart + P&F on the same range and timeframe

Procedure (accumulation)

  1. Identify the SOS toward the right of the range on the bar chart
  2. Find the LPS — the last support on the post-SOS reaction
  3. On the P&F, count right to left at the LPS level
  4. Start with a conservative count; extend left as the markup progresses
  5. Split the range into P&F phases (do not confuse with bar-chart A–E phases):
    • Phase 1: LPS → spring
    • Phase 2: spring → defined ST
    • Add complete phases — never half phases

Caution — The P&F count phases **do not match** the A–E phases of the schematic. Volume and price signal where each P&F phase begins and ends.

Validating the count

Signal Meaning
LPS at PS or SC level Count often validated
Spring as LPS Valid alternative to the post-SOS LPS
Count too small vs resistance Insufficient cause — caution

Distribution (bearish count)

Symmetric procedure:

  • Horizontal count in the distribution range
  • Projection downward from the breakdown (SOW)
  • LPSY and BC as reference points

Nine tests and P&F

Two of the nine buying tests require P&F (Wyckoff Analytics):

  • Test #1 — prior downside objective reached (context)
  • Test #9 — upside objective from the count satisfied or in progress

Same for the selling tests in distribution.

Summary card
Input Validated trading range
Tool Horizontal P&F count
Output Minimum target
Typical mistake Partial count or wrong box size
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