Wick-off Check Moving Average

The Wick-off Check Moving Average indicator identifies specific price action patterns where candle wicks penetrate a moving average to signal potential trend continuations or support/resistance validations.

Usage

The Usage section focuses on identifying price interaction with a selected moving average to find high-probability entry points.

• Trend Continuation: This is the primary use case. By identifying "wick-off" patterns—where a candle opens on one side of the moving average, its wick crosses the average, and the candle closes back on the original side—traders can spot small pullbacks within an established trend.
• Support and Resistance Validation: The script can be used to confirm if a moving average is acting as a dynamic level of support or resistance. A successful "wick-off" suggests the level is holding.
• Signal Interpretation: Labels appear on the chart to indicate these patterns. In a confirmed uptrend, a wick dipping below the MA and closing above it serves as a bullish signal. Conversely, in a downtrend, a wick piercing above the MA and closing below it serves as a bearish signal.

Details

The script functions by monitoring the relationship between the candle body and the moving average. A pattern is detected when the price wick crosses the moving average while the open and close remain on the same side.

To improve signal quality, the script includes a Trend Validation mechanism. This requires the price to stay on one side of the moving average for a user-defined number of bars before a "continuation" signal is triggered. Furthermore, the Wick Validation logic compares the current wick size against a historical average to ensure the price rejection is significant enough to warrant a signal.

Settings

MA

• Method Multi MA: Selects the calculation logic for the moving average (e.g., SMA, EMA, VWMA, Hull MA, etc.).
• MA Source: The price data used for the moving average calculation (e.g., Close).
• Length Multi MA: Sets the lookback period for the moving average calculation.

Trend

• Length Bar - Trend Validation: Specifies the minimum number of consecutive bars the price must spend above or below the MA to confirm an active trend.

Wickoff Mode

• Wickoff Mode:
  • continuation pattern: Displays signals only when a trend is confirmed.
  • no trend in progress: Displays signals only when a trend has not yet been confirmed.
  • both: Displays all detected wick-off patterns regardless of trend state.

Wickoff Settings

• Length Avg Wick Validation: The lookback period used to calculate the average wick size for filtering.
• Factor Avg Wick Validation: A multiplier applied to the average wick size; the current wick must exceed this value to be considered valid.

FAQ

How do I interpret the "W" labels on my chart? A green "W" below a candle typically indicates a bullish wick-off (rejection of the MA from above), while a red "W" above a candle indicates a bearish wick-off (rejection of the MA from below).

Can I use different types of moving averages? Yes, the indicator supports 12 different MA types, including EMA, SMA, HMA, and McGinley Dynamic, which can be adjusted in the "Method Multi MA" setting.

How do I get access to the Wick-off Check Moving Average? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.