Wyckoff events step by step: SC, AR, ST, spring, SOS, LPS and distribution

Richard Wyckoff described how large operators build positions without moving price against themselves. They do it inside a range. Accumulation is a range where they buy before a markup. Distribution is a range where they sell before a markdown.

RTC AI finds these ranges automatically and labels each event. Accumulation is drawn in blue and distribution in rose, and each has its own switch in Layers.

The selling climax (SC) is panic: a wide bar on ultra high volume. The automatic rally (AR) follows as shorts cover; its high marks the top of the range. The secondary test (ST) returns toward the SC low on lower volume and a narrower spread.

Phase B is the long middle of the range, where price rotates between the SC low and the AR high. Volume falls over time as supply is absorbed.

Phase C brings the spring: a dip below the range low that quickly closes back inside. It takes the last stops and shakes out the last sellers. A spring on low volume, or a spring followed by a low-volume test, is the classic low-risk buy area.

The sign of strength (SOS) is a strong rally that closes above the AR high on good volume. The last point of support (LPS) is the pullback that follows, holding at or above the old range top on low volume.

RTC only marks an SOS at least five bars after the AR, so a quick spike does not count as a real breakout.

At the top the same story runs in reverse. The buying climax (BC) ends the rally, the automatic reaction (AR) sets the range low and the secondary test (ST) retests the high with less volume.

The upthrust after distribution (UTAD) pushes above the range high and fails. The sign of weakness (SOW) breaks the range low, and the last point of supply (LPSY) is the weak bounce that fails below it.