Wyckoff on the ASTER Chart: Why Do So Many Traders Buy the Wrong Dip?
When looking at the ASTER chart, many traders assume that the sideways movement following a sharp decline is an accumulation phase, but under Wyckoff theory, this structure clearly represents a distribution phase. Price experienced a strong sell-off, followed by a weak rebound and a prolonged range, allowing large players to gradually distribute their positions to retail traders. The chart shows a clear Selling Climax during panic selling with heavy volume, followed by an Automatic Rally that forms the upper boundary of the distribution range. Price then returns to retest the lows in a Secondary Test with noticeably lower volume, signaling weak demand.
Throughout this range, each rally produces a lower high, trading volume fades, and upward moves fail quickly. This is the stage where many traders are misled into thinking the market is accumulating simply because price looks cheap, while in reality, smart money is quietly exiting. Once price breaks below the range, the distribution phase is confirmed and the downtrend resumes. Wyckoff is not designed to help traders catch the bottom, but to help them understand when not to buy and avoid becoming liquidity for the market.
