Everything in Wyckoff rests on three laws. They are not indicators but principles for judging price and volume together, and the modules that follow examine each one in depth.
The three laws at a glance
- Supply & Demand — which side is in control decides direction.
- Cause & Effect — the size of a range builds the fuel for the move that follows.
- Effort vs Result — volume is effort; the resulting price move shows whether that effort worked.
Used together they answer different questions. Supply and demand tells you which way price is likely to break; cause and effect gives a sense of how far it might travel; and effort versus result tells you whether the move you are seeing is backed by conviction or likely to fail.
Three laws, three questions: which way, how far, and is it real? — supply/demand, cause/effect, effort/result.
None of the laws is a crystal ball. They are ways to weigh evidence, and even when all three point the same way a move can still fail — which is exactly why position sizing and stops remain non-negotiable.