Wyckoff Event Detection [Alpha Extract]

11 Mac

Wyckoff Event Detection

A powerful and intelligent indicator designed to detect key Wyckoff events in real time, helping traders analyze market structure and anticipate potential trend shifts. Using volume and price action, this script automatically identifies distribution and accumulation phases, providing traders with valuable insights into market behavior.

🔶 Phase-Based Detection

Utilizes a phase detection algorithm that evaluates price and volume conditions to identify accumulation (bullish) and distribution (bearish) events. This method ensures the script effectively captures major market turning points and avoids noise.

🔶 Multi-Factor Event Recognition

Incorporates multiple event conditions, including upthrusts, selling climaxes, and springs, to detect high-probability entry and exit points. Each event is filtered through customizable sensitivity settings, ensuring precise detection aligned with different trading styles.

🔶 Customizable Parameters

Fine-tune event detection with adjustable thresholds for volume, price movement, trend strength, and event spacing. These inputs allow traders to personalize the script to match their strategy and risk tolerance.

// === USER INPUTS ===
i_volLen = input.int(20, "Volume MA Length", minval=1)
i_priceLookback = input.int(20, "Price Pattern Lookback", minval=5)
i_lineLength = input.int(15, "Line Length", minval=5)
i_labelSpacing = input.int(5, "Minimum Label Spacing (bars)", minval=1, maxval=20)

❓How It Works

🔶 Event Identification

The script scans for key Wyckoff events by analyzing volume spikes, price deviations, and trend shifts within a user-defined lookback period. It categorizes events into bullish (accumulation) or bearish (distribution) structures and plots them directly on the chart.

// === EVENT DETECTION ===
volMA = ta.sma(volume, i_volLen)
highestHigh = ta.highest(high, i_priceLookback)
lowestLow = ta.lowest(low, i_priceLookback)

🔶 Automatic Filtering & Cleanup

Unconfirmed or weak signals are filtered out using customizable strength multipliers and volume thresholds. Events that do not meet the minimum conditions are discarded to keep the chart clean and informative.

🔶 Phase Strength Analysis

The script continuously tracks bullish and bearish event counts to determine whether the market is currently in an accumulation, distribution, or neutral phase. This allows traders to align their strategies accordingly.

🔶 Visual Alerts & Labels

Detects and labels key Wyckoff events directly on the chart, providing immediate insights into market conditions:
- PSY (Preliminary Supply) and UT (Upthrust) for distribution phases.
- PS (Preliminary Support) and SC (Selling Climax) for accumulation phases.
- Labels adjust dynamically to avoid chart clutter and improve readability.




🔶 Entry & Exit Optimization

By highlighting supply and demand imbalances, the script assists traders in identifying optimal entry and exit points. Wyckoff concepts such as springs and upthrusts provide clear trade signals based on market structure.

🔶 Trend Confirmation & Risk Management

Observing how price reacts to detected events helps confirm trend direction and potential reversals. Traders can place stop-loss and take-profit levels based on Wyckoff phase analysis, ensuring strategic trade execution.

🔶 Table-Based Market Analysis (Table)

A built-in table summarizes:
- Market Phase: Accumulation, Distribution, or Neutral.
- Strength of Phase: Weak, Moderate, or Strong.
- Price Positioning: Whether price is near support, resistance, or in a trading range.
- Supply/Demand State: Identifies whether the market is supply or demand dominant.




🔶 Why Choose Wyckoff Market Phases - Alpha Extract?

This indicator offers a systematic approach to understanding market mechanics through the lens of Wyckoff's time-tested principles. By providing clear and actionable insights into market phases, it empowers traders to make informed decisions, enhancing both confidence and performance in various trading environments.

27 Mac

Nota Keluaran

v2

Visualization feature for trading range added.

4 hari lalu

Nota Keluaran

Added -

• BC (Buying Climax) - Significant price increase on very high volume during distribution phase
  
• ST (Secondary Test) - Differentiated for both accumulation (ST-A) and distribution (ST-D) phases
  
• Spring - Price breaks below support but closes back above on increased volume
  
• JAC (Jump Across the Creek) - Strong breakout from trading range on increased volume
  
• BUEC (Backup after Upthrust) - Pullback following an upthrust, typically on lower volume
  
• TSO (Terminal Shakeout) - Final test of support before a significant move upward
  

Phase-Specific Events:

UT-D vs AR-A - Now differentiated between:

Upthrust in Distribution phase (UT-D)
Automatic Rally in Accumulation phase (AR-A)

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Also added additional boxes within line plots of different wyckoff labels. Enabaling the user to easily identify labels on chart.

Added a setting to adjust the thickness of the line plot.

kelmarin

Nota Keluaran

Added a new function that allows the user to select "Pivot-based" for the display of the trading range.

Also added:

Pivot Detection Parameters:
Added a "Pivot Strength" input to control how significant the pivot points need to be
Added a "Pivot Lookback" input to determine how far back to scan for pivot points

Pivot-Based Range Logic:

Scans for the most significant pivot high and low points within the lookback period
Automatically sets the trading range box between these pivot points
Falls back to the dynamic range method if no clear pivots are found