## The 7 Wyckoff Events

### Event 1 — Preliminary Support / Preliminary Supply

| Aspect | Bullish (PS) | Bearish (PSY) |
|--------|-------------|---------------|
| **Book Chapter** | Ch.14 — Preliminary Support | Ch.14 — Preliminary Supply |
| **Description** | First sign of institutional buying after a downtrend | First sign of institutional selling after an uptrend |
| **Price** | Wide-range bar, closes upper half, makes new low | Wide-range bar, closes lower half, makes new high |
| **Volume** | Above average (mid-level) | Above average (mid-level) |
| **Meaning** | Smart money begins absorbing supply | Smart money begins distributing to buyers |

### Event 2 — Selling Climax / Buying Climax

| Aspect | Bullish (SC) | Bearish (BC) |
|--------|-------------|---------------|
| **Book Chapter** | Ch.15 — Selling Climax | Ch.15 — Buying Climax |
| **Description** | Panic selling exhausts itself | Euphoric buying exhausts itself |
| **Price** | Extremely wide range, new low, closes well off low | Extremely wide range, new high, closes well off high |
| **Volume** | Very high (multiple times average volume) | Very high (multiple times average volume) |
| **Meaning** | The last of the sellers have been flushed out | The last of the buyers have been filled |

The book distinguishes between an "exhaustion climax" (the genuine end of a move) and other climax events. The exhaustion climax is the most tradable form — it signals that the prior trend has fully exhausted itself, and a reversal is imminent.

### Event 3 — Automatic Rally / Automatic Reaction

| Aspect | Bullish (AR) | Bearish (AR) |
|--------|-------------|---------------|
| **Book Chapter** | Ch.16 — Automatic Rally | Ch.16 — Automatic Reaction |
| **Description** | Price bounces sharply after SC | Price drops sharply after BC |
| **Price** | Closes above prior bar's high | Closes below prior bar's low |
| **Volume** | At least moderate | At least moderate |
| **Meaning** | The path of least resistance begins to shift upward | The path of least resistance begins to shift lower |

The AR occurs because professional traders, who absorbed the supply at the SC lows, now stop buying aggressively. With selling pressure removed, price naturally rebounds. The AR establishes the initial range boundary for the subsequent structure.

### Event 4 — Secondary Test

| Aspect | Bullish (ST) | Bearish (ST) |
|--------|-------------|---------------|
| **Book Chapter** | Ch.17 — Secondary Test | Ch.17 — Secondary Test |
| **Description** | Price retests the SC low area | Price retests the BC high area |
| **Price** | Narrow range near low, holds above SC low | Narrow range near high, holds below BC high |
| **Volume** | Significantly lower than SC/BC (low volume) | Significantly lower than SC/BC (low volume) |
| **Meaning** | Supply has been absorbed; no new selling pressure | Demand has been absorbed; no new buying pressure |

The book distinguishes the Secondary Test (Phase A) from generic tests in Phases B, C, and after breakouts. The Secondary Test specifically retests the climax extreme (SC low or BC high). Generic tests re-test any extreme at any point in the structure. Tests at the upper extreme in Phase B denote underlying strength — professional traders probe for selling interest. Tests at the lower extreme denote underlying weakness.

### Event 5 — Spring / Upthrust (Shakeout)

| Aspect | Bullish (Spring) | Bearish (UTAD) |
|--------|-------------------|--------------------|
| **Book Chapter** | Ch.18 — Spring/Shakeout | Ch.18 — UpThrust After Distribution |
| **Description** | Price breaks below ST low then reverses back above | Price breaks above ST high then reverses back below |
| **Price** | Low < ST low, close > ST low with moderate volume | High > ST high, close < ST high with moderate volume |
| **Volume** | Moderate (shakeout traps sellers) | Moderate (shakeout traps buyers) |
| **Meaning** | Final liquidity grab before markup begins | Final liquidity grab before markdown begins |

The Spring performs a triple function for institutional traders: (1) it triggers stops of traders positioned long, (2) it induces uninformed traders to sell into the apparent breakdown, and (3) it allows professionals to profit from the move. A Spring does not occur in every accumulation — many structures begin trending without a shakeout. The book distinguishes between several Spring types: ordinary shakeout, terminal shakeout, and minor shakeout. UTAD (UpThrust After Distribution) is the bearish equivalent — it sweeps above the structure's upper boundary, traps breakout buyers, then reverses.

The book also identifies tests of the Spring and tests of the UTAD — confirming behaviors where price revisits the shakeout extreme on low volume, verifying that the opposite side has been neutralized.

### Event 6 — Sign of Strength / Sign of Weakness (Breakout)

| Aspect | Bullish (SOS) | Bearish (SOW) |
|--------|--------------|---------------|
| **Book Chapter** | Ch.19 — Sign of Strength | Ch.19 — Sign of Weakness |
| **Description** | Price breaks above the structure's upper boundary | Price breaks below the structure's lower boundary |
| **Price** | Breaks above highest high with momentum | Breaks below lowest low with momentum |
| **Volume** | High volume, wide spread | High volume, wide spread |
| **Meaning** | Accumulation complete; markup begins | Distribution complete; markdown begins |

A minor SOS (minor Sign of Strength) and SOS Bar are smaller-scale strength signatures that appear within the developing structure. Similarly, a minor SOW and SOW Bar denote smaller-scale weakness signatures. The breakout without volume is a special case: if price breaks structure with no volume, this can represent either genuine interest or a false breakout — the test after breakout resolves the ambiguity.

### Event 7 — Last Point of Support / BUEC / Last Point of Supply / BUES (Confirmation)

| Aspect | Bullish (LPS/BUEC) | Bearish (LPSY/BUES) |
|--------|-------------------|--------------------|
| **Book Chapter** | Ch.20 — Last Point of Support | Ch.20 — Last Point of Supply |
| **Description** | Pullback to the Creek (resistance-turned-support) after breakout | Bounce to the Creek (support-turned-resistance) after breakout |
| **Price** | Retests prior AR high / Creek area | Retests prior AR low / Creek area |
| **Volume** | Low volume (no selling interest) | Low volume (no buying interest) |
| **Meaning** | Last opportunity to join before full trend departure | Last opportunity to short before full trend departure |

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