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Richard Wyckoff
The Tape Reader
Wyckoff Method — Supply/Demand · Composite Operator · Accumulation
Richard Wyckoff was one of the most influential figures in early 20th-century Wall Street. Through decades of tape reading, he distilled markets to their purest truth: the battle between supply and demand, orchestrated by the Composite Operator. His method reads price and volume to identify when smart money is accumulating or distributing — before the move happens.
Method principle · Legend AI synthesis Read price and volume as evidence of supply and demand, then look for a successful test, spring, or sign of strength before acting.
Key Rules
- The Composite Operator accumulates before markup — follow the smart money
- A Spring is a false break below support on low volume — the highest-conviction buy
- Sign of Strength (SOS): breakout above resistance on expanding volume confirms markup
- Last Point of Support (LPS): pullback after SOS on dry volume — ideal entry
- Effort vs. Result: big volume with little price movement signals absorption
- Never fight the tape — always trade in the direction of least resistance
Public Sources
Wyckoff Stock Market Institute history ↗
Wyckoff Institute course overview ↗
Profile copy is a Legend AI summary of published methodology, not a quotation or endorsement.
Signature Patterns
Legend AI implements Richard Wyckoff's published methodology for educational pattern detection. Not affiliated with or endorsed by Richard Wyckoff. Not investment advice. Full disclaimer →