Forex glossary
Wyckoff Method
The Wyckoff Method interprets price and available volume through supply and demand, cause and effect, and effort versus result. It uses accumulation and distribution schematics. The Composite Man is a heuristic for large participants' combined activity, not an identified market controller; spot FX volume coverage requires checking.
Illustrative example
How does it work in practice?
Assume a 100–110 range briefly falls to 99 before returning above 100. A Wyckoff schematic may label a spring candidate; price alone does not confirm that institutions are accumulating positions.
A case to work through
A schematic without an identified participant
Hypothetically, a 40–50 range is breached to 39.5 before price returns to 41.
- Under selected rules, the move can be considered a spring candidate.
- It does not establish who bought or confirm later phases of the entire schematic.
What follows? Record the label as a hypothesis and check volume coverage.
Example boundary: Composite Man is a heuristic; broker ticks do not show complete spot FX turnover.
A useful distinction
Wyckoff Method / Smart Money Concepts (SMC)
Wyckoff interprets phases using price and volume; SMC uses labels including order blocks, FVGs and swing structure.
Check your understanding
Apply an interpretive model without treating it as identification of a person.
Show the answer and explanation
A model of large participants' combined activity
It is an interpretive tool rather than an established identity.
Market data and interpretation limits
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Sources and documentation
- StockCharts – Wyckoff Method
Accumulation/distribution schematics and Composite Man as an interpretive heuristic.
Document read: - BIS – foreign-exchange market structure
Fragmented FX trading and limitations of an individual source's market coverage.
Document read:
The example illustrates the mechanism. Check current account conditions and instrument specifications with the provider.