That can be ascertained from studying price action, volume, and time. You can see below the scheme of his concept to get it better.
Wyckoff Method – Laws
1. The law of supply and demand determines the price direction.
2. The law of cause and effect helps the trader and investor set price objectives by gauging the potential extent of a trend emerging from a trading range.
3. The law of effort vs result provides an early warning of a possible coming trend reversal.
Wishing you a great week!
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