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?

The classical count measures a cause as the horizontal width of a point & figure range, which Point & Figure Cause Counting implements directly. This build approximates the count from bar-chart duration and width, then calibrates objectives from realized ratios.

Why is there no objective zone at first?

The proportionality calibrates from completed cause-to-effect episodes, so the first cause on a fresh chart resolves without a projection. Zones appear after one completed episode and firm up as the memory fills.

Should the objective zone be treated as a target?

It is a zone for planning, not a level — the proportionality is a tendency, not a rule. The Reached alert marks a rational area to scale out; the Exceeded alert flags effects outrunning what similar causes have funded.