Cause & Effect

Cause & Effect puts Wyckoff's law of cause and effect on the chart as a working instrument. A consolidation of 20+ bars inside a volatility-capped window is marked as the cause; a close beyond the range tints the box with the breakout direction and projects an objective zone from the cause's size and the effect/cause ratios observed on the chart. Completed episodes feed the calibration, so projections are the chart's own measured tendency.

How to Trade the Cause & Effect?

• Neutral cause box: preparation is building; dotted pending objectives creep away from both sides as it grows.
• Upward or downward resolution: markup or markdown begins; the shaded zone spans the interquartile band of realized ratios around the dotted median.
• Effect label: tracks the farthest excursion and its multiple of the cause; the dashboard's effect/risk row sizes it against a stop across the range.

Alerts cover cause formation, both breakouts, the zone reached or exceeded, and the episode's end.

Cause & Effect Settings

• Minimum Cause Duration (Bars) (default 20): fewest bars inside the capped window to qualify.
• Maximum Cause Height (xATR) (default 3.5): range height cap, in volatility-baseline multiples.
• Volatility Baseline Length (default 200): ATR length behind the height cap.
• Cause Size Measure (default Duration x Height): duration x height, duration x ATR, or height alone.
• Calibration Memory (Episodes) (default 20): episodes used to estimate the proportionality.
• Show Dashboard (default enabled) with Dashboard Position (default Top Right).
• Style toggles (Cause Ranges, Pending Objectives While Cause Builds, Objective Zone, Effect Path, Cause / Effect Labels, Keep Completed Episodes) are on by default.

Frequently Asked Questions

How does this differ from point and figure cause counting?

Why is there no objective zone at first?

Should the objective zone be treated as a target?