This indicator was designed to be a comprehensive, intuitive, overly engineered algorithm that plots Wyckoff accumulation and distribution patterns on the chart as they arise. It shows the current status of the regime on a side panel, while also overlaying the accumulation or distribution schematic over the chart for added visual aid. While most indicators use pivot points to create the structure, this indicator uses a complex algorithm to map the progress through numerous checks and structural matching techniques.
I designed this indicator to be both instructional and actionable, so people unfamiliar with the Wyckoff Method can jump in and learn about the phases with a clean and intuitive user interface and also make informed decisions based on the structure of the chart. People who have used the Wyckoff Method for years can use this indicator as confluence.
Here is a description of the Wyckoff Method and the different phases within:
Phase A - Stopping action. The prior trend halts. In an accumulation range, a Selling Climax (SC) arrives: heavy volume, a wide spread, and a close well off the low, marking panic selling being absorbed. An Automatic Rally (AR) follows as selling pressure exhausts and price snaps back. A Secondary Test (ST) then revisits the climax area on lighter volume and narrower spread, confirming that supply is genuinely diminished. The SC and AR together define the boundaries of the trading range. In distribution, the same sequence runs inverted with a Buying Climax (BC) and an Automatic Reaction.
Phase B - Building cause. Price oscillates within the range, often for a long time. This is where the institutional position is actually built. The range is tested repeatedly at both edges, and each successive test should show less volume and tighter spread than the last. Wyckoff's "cause and effect" principle holds that the time and work spent here determines the size of the move that follows.
Phase C - The test. The range makes a final probe against the dominant participants. In accumulation, this is a Spring: a brief break below support that fails and is quickly reclaimed, flushing out remaining sellers and confirming that little supply is left. In distribution, an Upthrust After Distribution (UTAD) breaks above resistance and fails back into the range. A low-volume Test of the Spring or UTAD usually follows. Not every range produces an excursion; some resolve on a quiet terminal test at an edge instead.
Phase D - Trend within the range. The evidence tips decisively. A Sign of Strength (SOS) drives across the range on expanding volume, or a Sign of Weakness (SOW) does the opposite. Price then pulls back to a Last Point of Support (LPS) or rallies to a Last Point of Supply (LPSY), holding above the broken resistance or failing below the broken support. This is the classic entry location because the risk point is well defined.
Phase E - Trend out of the range. Price is accepted outside the range and the markup or markdown proceeds. The old range now acts as support or resistance.
Now for how to use it:
Manually Adjustable Schematic
When you first turn on the indicator, you will notice that it requires you to select two points. This is something that I couldn't figure out a way around, and is used to plot a manually adjustable Wyckoff schematic over the chart that you can move around.
The manual schematic is disabled by default, but the two points still need to be chosen when you first open the indicator. You select the top left and bottom right points, which can be moved to scale or shift the adjustable schematic. You can move it to overlay on the chart to check the strength of the pattern you are looking at.
Again, the manually adjustable schematic is DISABLED by default and must be enabled in the user settings.
Historical Patterns
The next feature is that historical patterns plot the schematic above (accumulation) or below (distribution) the chart when the chart reaches a certain point within the regime. The default setting is phase C, but that can be changed in the user settings. There is a small red 'x' where the schematic gets invalidated so you can see where the pattern broke. The schematic that gets plotted at historical events may not look exactly like the ideal Wyckoff accumulation or distribution patterns since it creates pivot markers where each point on the chart confirms the points. There is also a background highlight to give additional visual aid to the phases.
Side Panels
You probably notice that there are schematics plotted off to the side of the chart with highlighted segments. These side panels are a visual aid to show you, at a glance, where the current chart is in the Wyckoff Method. They highlight the chart up to the point that has been last confirmed, and keeps the unconfirmed parts of the method grayed out. This gives a very intuitive and quick glance where the chart is sitting currently within the regime.
Tables
There are two tables that can be enabled individual in the user settings, which have completely different functions.
1) Status table - This table shows the current state of the chart. Which phase the chart is currently on, the last confirmed event, the progression through the phase, and which timeframe the farthest progressed phase has been found on.
2) Debug table - This table shows the individual requirements for the current phase in order to progress to the next phase. It gives you the exact checks that the indicator is looking for in order to keep progressing. This indicator uses numerous requirements to progress phases rather than simple pivot points. It provides weights to the requirements and has some requirements be hard, and some soft. Hard requirements must be met in order to progress to the next phase, while soft requirements must meet a minimum cumulative threshold.
Chart overlays
When a certain phase is reached (default B - user adjust) on the current timeframe, a schematic will be overlaid on top of the chart, event names will be labeled, and a trading range box will populate over the accumulation or distribution zone. These can be toggled on or off, but are enabled by default.
Informational bubbles
If you hover your mouse over an event label, information about that event will display. It will provide a brief description of what the event is and how it builds into the Wyckoff phases.
Entry points
The chart will display a label for an entry (buy or sell) when the schematic reaches a certain level that is defined within the algorithm. It generally happens within phase C, but it is calculated based on a confidence score. The strictness of the entry points can be adjusted in the user settings. The point of entry will also be shown on the label.
Additional Features
This indicator is extremely complex, which creates countless unique conditions that may result in it not finding a pattern that appears to be textbook, or finding patterns that visually don't meet the criteria of the Wyckoff Method. Creating an indicator to algorithmically detect the structure is non-trivial and may contain errors. This was designed as a visual aid tool only.
I designed this indicator to be both instructional and actionable, so people unfamiliar with the Wyckoff Method can jump in and learn about the phases with a clean and intuitive user interface and also make informed decisions based on the structure of the chart. People who have used the Wyckoff Method for years can use this indicator as confluence.
Here is a description of the Wyckoff Method and the different phases within:
Phase A - Stopping action. The prior trend halts. In an accumulation range, a Selling Climax (SC) arrives: heavy volume, a wide spread, and a close well off the low, marking panic selling being absorbed. An Automatic Rally (AR) follows as selling pressure exhausts and price snaps back. A Secondary Test (ST) then revisits the climax area on lighter volume and narrower spread, confirming that supply is genuinely diminished. The SC and AR together define the boundaries of the trading range. In distribution, the same sequence runs inverted with a Buying Climax (BC) and an Automatic Reaction.
Phase B - Building cause. Price oscillates within the range, often for a long time. This is where the institutional position is actually built. The range is tested repeatedly at both edges, and each successive test should show less volume and tighter spread than the last. Wyckoff's "cause and effect" principle holds that the time and work spent here determines the size of the move that follows.
Phase C - The test. The range makes a final probe against the dominant participants. In accumulation, this is a Spring: a brief break below support that fails and is quickly reclaimed, flushing out remaining sellers and confirming that little supply is left. In distribution, an Upthrust After Distribution (UTAD) breaks above resistance and fails back into the range. A low-volume Test of the Spring or UTAD usually follows. Not every range produces an excursion; some resolve on a quiet terminal test at an edge instead.
Phase D - Trend within the range. The evidence tips decisively. A Sign of Strength (SOS) drives across the range on expanding volume, or a Sign of Weakness (SOW) does the opposite. Price then pulls back to a Last Point of Support (LPS) or rallies to a Last Point of Supply (LPSY), holding above the broken resistance or failing below the broken support. This is the classic entry location because the risk point is well defined.
Phase E - Trend out of the range. Price is accepted outside the range and the markup or markdown proceeds. The old range now acts as support or resistance.
Now for how to use it:
Manually Adjustable Schematic
When you first turn on the indicator, you will notice that it requires you to select two points. This is something that I couldn't figure out a way around, and is used to plot a manually adjustable Wyckoff schematic over the chart that you can move around.
The manual schematic is disabled by default, but the two points still need to be chosen when you first open the indicator. You select the top left and bottom right points, which can be moved to scale or shift the adjustable schematic. You can move it to overlay on the chart to check the strength of the pattern you are looking at.
Again, the manually adjustable schematic is DISABLED by default and must be enabled in the user settings.
Historical Patterns
The next feature is that historical patterns plot the schematic above (accumulation) or below (distribution) the chart when the chart reaches a certain point within the regime. The default setting is phase C, but that can be changed in the user settings. There is a small red 'x' where the schematic gets invalidated so you can see where the pattern broke. The schematic that gets plotted at historical events may not look exactly like the ideal Wyckoff accumulation or distribution patterns since it creates pivot markers where each point on the chart confirms the points. There is also a background highlight to give additional visual aid to the phases.
Side Panels
You probably notice that there are schematics plotted off to the side of the chart with highlighted segments. These side panels are a visual aid to show you, at a glance, where the current chart is in the Wyckoff Method. They highlight the chart up to the point that has been last confirmed, and keeps the unconfirmed parts of the method grayed out. This gives a very intuitive and quick glance where the chart is sitting currently within the regime.
Tables
There are two tables that can be enabled individual in the user settings, which have completely different functions.
1) Status table - This table shows the current state of the chart. Which phase the chart is currently on, the last confirmed event, the progression through the phase, and which timeframe the farthest progressed phase has been found on.
2) Debug table - This table shows the individual requirements for the current phase in order to progress to the next phase. It gives you the exact checks that the indicator is looking for in order to keep progressing. This indicator uses numerous requirements to progress phases rather than simple pivot points. It provides weights to the requirements and has some requirements be hard, and some soft. Hard requirements must be met in order to progress to the next phase, while soft requirements must meet a minimum cumulative threshold.
Chart overlays
When a certain phase is reached (default B - user adjust) on the current timeframe, a schematic will be overlaid on top of the chart, event names will be labeled, and a trading range box will populate over the accumulation or distribution zone. These can be toggled on or off, but are enabled by default.
Informational bubbles
If you hover your mouse over an event label, information about that event will display. It will provide a brief description of what the event is and how it builds into the Wyckoff phases.
Entry points
The chart will display a label for an entry (buy or sell) when the schematic reaches a certain level that is defined within the algorithm. It generally happens within phase C, but it is calculated based on a confidence score. The strictness of the entry points can be adjusted in the user settings. The point of entry will also be shown on the label.
Additional Features
- Higher timeframe searching can be disabled, so you are only looking at the current timeframe on for patterns. It is enabled by default because chart patterns don't always follow set lengths.
- Side panels can be resized and moved in the user settings.
- Overlay schematic has a smart collision detection so side panels will automatically adjust their position so there isn't overlap
- Side panels can be manually set to show user defined schematics when no pattern is identified. As soon as there is a valid pattern, only the valid pattern schematic will display.
- Alerts available for entry conditions and events
This indicator is extremely complex, which creates countless unique conditions that may result in it not finding a pattern that appears to be textbook, or finding patterns that visually don't meet the criteria of the Wyckoff Method. Creating an indicator to algorithmically detect the structure is non-trivial and may contain errors. This was designed as a visual aid tool only.
Catatan Rilis
Fixed bug with schematic plotting cutting off at end of day for tickers that had time breaksAdded new user select checkbox to plot HTF historical schematics as well as current timeframe schematics. This is OFF by default.
Catatan Rilis
Multiple updates:1) Commented out the manual adjustable schematic plot. It required you to choose two points each time loading indicator. Lots of people complained. I removed it. Not necessary. It was fluff.
2) The overlay schematic that projects the future plots wasn't scaling properly. I was using an ATR-based scaling technique when I should have been simply matching the overall shape of the schematic. It has been fixed.
3) There was a bug with repainting buy and sell signals. This has been fixed. When a signal plots, it now stays.
Skrip open-source
Dengan semangat TradingView yang sesungguhnya, pembuat skrip ini telah menjadikannya sebagai sumber terbuka, sehingga para trader dapat meninjau dan memverifikasi fungsinya. Salut untuk penulisnya! Meskipun Anda dapat menggunakannya secara gratis, perlu diingat bahwa penerbitan ulang kode ini tunduk pada Tata Tertib kami.
Pernyataan Penyangkalan
Informasi dan publikasi ini tidak dimaksudkan, dan bukan merupakan, saran atau rekomendasi keuangan, investasi, trading, atau jenis lainnya yang diberikan atau didukung oleh TradingView. Baca selengkapnya di Ketentuan Penggunaan.
Skrip open-source
Dengan semangat TradingView yang sesungguhnya, pembuat skrip ini telah menjadikannya sebagai sumber terbuka, sehingga para trader dapat meninjau dan memverifikasi fungsinya. Salut untuk penulisnya! Meskipun Anda dapat menggunakannya secara gratis, perlu diingat bahwa penerbitan ulang kode ini tunduk pada Tata Tertib kami.
Pernyataan Penyangkalan
Informasi dan publikasi ini tidak dimaksudkan, dan bukan merupakan, saran atau rekomendasi keuangan, investasi, trading, atau jenis lainnya yang diberikan atau didukung oleh TradingView. Baca selengkapnya di Ketentuan Penggunaan.