“My edge is really this understanding of market psychology,” says Inks.
Over 100 years ago, a financial technician named Richard Wyckoff developed a theory that the market moves in cycles, and that understanding these cycles will give signals on when to buy and sell. They’re still used by traders and are known as the Wyckoff market cycle. Christopher Inks studies the charts and uses these cycles to guide his setups. “My edge is really this understanding of market psychology,” says Inks. “Being able to read price action and volume.” Inks says these cycles occur on both the longer horizons (weeks and months) and even on the shorter timeframes (minutes). This helps clarify the direction of a trend, says Inks, “and one of the best things traders can do is trade in the direction of the trend.”