Who this entry is for — Anyone who has seen a spring or UTAD and wants to know whether the structure is mature. The nine tests are the objective step 4 checklist: they do not replace judgment, but they prevent entries mid phase B.
Source: Wyckoff Analytics (modern teaching); aligned with Pruden schematics and Three Skills (2007). They formalise step 4 of the five steps.
Prerequisites
Five steps (steps 1–3 completed before step 4) and Accumulation phases A–E / Distribution phases A–E.
Role in the method
Step 4 answers: has the Composite Man finished building the cause? The nine buying tests verify readiness for long/accumulation; the nine selling tests, mirror image, for short/distribution. Read them on the bar chart for structure, volume and relative strength; tests 1 and 9 require P&F for targets and minimum risk/reward ratio (upside or downside ≥ 3× the stop).
Nine buying tests (accumulation)
| # | Test | Chart |
|---|---|---|
| 1 | Prior bearish objective reached or nearly so | P&F |
| 2 | PS, SC, ST present | Bar + P&F |
| 3 | Bullish activity on rallies > bearish activity on reactions | Bar |
| 4 | Bearish stride/trendline broken | Bar or P&F |
| 5 | Higher lows | Bar or P&F |
| 6 | Higher highs on internal rallies | Bar or P&F |
| 7 | Stock stronger than index (relative strength) | Bar |
| 8 | Well-defined horizontal base (cause building) | Bar or P&F |
| 9 | Potential upside from P&F count ≥ 3× stop risk | P&F + bar |
Nine selling tests (distribution)
| # | Test | Chart |
|---|---|---|
| 1 | Prior bullish objective reached or nearly so | P&F |
| 2 | PSY, BC, ST present | Bar + P&F |
| 3 | Bearish activity on reactions > bullish activity on rallies | Bar |
| 4 | Bullish stride/trendline broken | Bar or P&F |
| 5 | Lower highs | Bar or P&F |
| 6 | Lower lows | Bar or P&F |
| 7 | Stock weaker than index | Bar |
| 8 | Well-defined horizontal top | Bar or P&F |
| 9 | Potential downside from P&F count ≥ 3× stop risk | P&F + bar |
Test weight and judgment
Not all tests carry the same operational weight. Test 2 (phase A sequence) and tests 5–6 (low/high structure) are structural prerequisites: without them, isolated spring or SOS is not enough. Test 7 integrates step 2 (harmony). Tests 1 and 9 tie cause and effect to the P&F count. A market in distribution (step 1 violated) invalidates most buying tests even if the stock satisfies them locally.
Example — Stock with 7/9 buying tests yes, but index in distributive phase D with active SOW: step 1 denies the setup — local tests do not authorise a long. Wait for step 5 (index turn) or change candidate.
Common mistake — Counting tests in phase B and buying on the first upthrust. Wyckoff operational readiness is phase **C–D** (spring/SOS or UTAD/SOW), not phase B — even with eight boxes ticked.
Reaccumulation and redistribution
Pruden extends the nine buying tests to reaccumulation (muted phase A, stricter test 7). The nine selling tests apply to redistribution with the same mirror logic.
Summary card
| Step | 4 (Readiness) |
| Buying | 9 tests — accumulation/long |
| Selling | 9 tests — distribution/short |
| Chart | Bar + P&F (tests 1, 9) |
| After | Step 5 — timing with index |