Wyckoff Pattern Indicator-AlmostPerfect

The Wyckoff Pattern Indicator tool automatically identifies market accumulation and distribution phases in real-time to provide buy, sell, and hold signals based on institutional supply and demand logic. It translates the classic Wyckoff Method into a structured scoring system that functions across all asset classes and timeframes.

Usage

The Usage section describes how the script can be used, examples should be provided in this section. This section also focuses on how main settings affect the indicator interpretation and output.

Phase Detection and Progression

The indicator scores every candle across six independent factors, including price position within the range, long-term trend (EMA 50/200), realized volatility, volume conditions, RSI, and MACD slope. To ensure signal stability, a 3-bar consecutive confirmation is required before a phase shift is confirmed.

The indicator tracks five distinct sub-phases (A through E) for both Accumulation and Distribution:

• Accumulation (Phases A-E): Tracks the stopping of a downtrend through the "Spring" or "Shakeout" toward the eventual mark-up phase.
• Distribution (Phases A-E): Tracks the stopping of an uptrend through "Upthrusts" (UTAD) toward the eventual mark-down phase.

Wyckoff Event Labels

The tool automatically plots labels for specific Wyckoff schematic events:

• SC/BC: Selling or Buying Climaxes indicating exhaustion.
• SP/UTAD: Springs and Upthrusts representing liquidity traps.
• SOS/SOW: Signs of Strength or Weakness indicating trend breaks on rising volume.
• LPS/LPSY: Last Points of Support or Supply during pullbacks or rallies.

Signals and Zones

• BUY (Green): Triggered during Accumulation Phases C/D, Springs, or LPS events. These are suppressed during Distribution phases.
• SELL (Red): Triggered during Distribution Phases C/D, UTADs, or LPSY events. These are suppressed during Accumulation phases.
• HOLD (Yellow): Indicates Phase B consolidation or ambiguous ranges where confirmation is required.
• Supply & Demand Zones: Red and green shaded bands represent the upper and lower boundaries of the current trading range.

Details

The script utilizes a multi-factor scoring engine to determine market state. A phase is only declared when a specific score threshold is met and maintained for three bars to prevent "whipsaw" signals caused by minor RSI or MACD fluctuations. Unlike static drawing tools, the supply and demand zones are calculated dynamically using plot() and fill() functions, ensuring they remain accurate across different chart scales and scroll positions.

Settings

Core Settings

• Lookback Period: Defines the number of bars used to calculate the trading range highs and lows (default 50).
• Volume Climax Multiplier: Sets the threshold for identifying high-volume climax events relative to the average volume.
• RSI Length: Determines the period for the internal RSI scoring component.

Display

• Phase Label: Toggles the visibility of labels when the market transitions between phases.
• Supply/Demand Zones: Enables or disables the red and green range bands.
• Buy/Sell/Hold Signals: Controls the visibility of the primary directional labels.
• Wyckoff Events: Toggles specific schematic markers like SC, BC, and SP.
• EMAs 20/50/200: Displays or hides the trend-following moving averages.
• Phase Background: Enables background shading to visually distinguish Accumulation and Distribution zones.
• Info Table: Displays a dashboard in the top-right corner with live data on phases, volume, and scoring.

Signal Colors

• Buy/Sell/Hold: Customizes the colors for the primary execution signals.

FAQ

How do I interpret the Phase E signals? Phase E represents the point where the price has exited the trading range and is trending. Signals in this phase are often trend-continuation confirmations.

Why are some BUY signals hidden even if a Spring occurs? The indicator suppresses BUY signals if the overall scoring logic indicates the market is currently in a Distribution phase to prevent trading against the dominant institutional bias.

How can I access the Wyckoff Pattern Indicator? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.