# Wyckoff Method

Classifies the chart into the four-stage Wyckoff campaign cycle (accumulation, markup, distribution, markdown) from stopping actions and ATR-scaled reactions, drawing range boxes, stage backgrounds and a range-height objective. A dashboard reads the three laws live (supply and demand, cause and effect, effort versus result) with a Composite Man summary and seven alerts.

- Indicator in the LuxAlgo Library, by LuxAlgo, published May 21, 2026.
- Access: free.
- Concepts: [Wyckoff Method](https://www.luxalgo.com/library/concept/wyckoff-method/) (primary)
- Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=ixfsr3x5n4nl3tto4my5p46j
- Page: https://www.luxalgo.com/library/indicator/wyckoff-method/

**Wyckoff Method** is the definitive clean build of the [Wyckoff Method](https://www.luxalgo.com/library/concept/wyckoff-method/): the campaign cycle and the three laws on one working overlay. A trend runs until a stopping action (no new extreme plus a sharp ATR-scaled counter-move) opens a range between the climax extreme and the automatic rally or reaction. An ATR allowance lets springs and upthrusts probe a boundary and snap back; a decisive close resolves the range and projects its objective.

## How to Trade the Wyckoff Method?

- **Stage transitions**: Accumulation and Distribution labels mark stopping actions; Markup and Markdown mark resolutions, each with the break's effort read.
- **Low-effort breaks**: a break without expanding spread and volume is flagged as a potential trap until effort confirms.
- **Law dashboard**: demand share, the developing cause and the effort/result gap roll up into a Composite Man narrative.

It heads the [Wyckoff family](https://www.luxalgo.com/library/family/wyckoff/): map the campaign here, refine entries with the event-level and wave-level tools.

## Wyckoff Method Settings

- **Stopping Bars** (default 10) and **Reaction Strength (ATR)** (default 2.0): what counts as a stopping action.
- **Shakeout Allowance (ATR)** (default 1.0): slack for closes probing the shakeout-prone boundary; 0 resolves on any close beyond.
- **ATR Length** (default 14): scales the reaction, shakeout and effort checks.
- **Bias Timeframe** (default empty): optional higher timeframe whose stage shows in the dashboard.
- **Law Lookback** (default 20) and **Ranking History** (default 100): windows for the law readings and their percentile ranking.
- **Balance Band %** (default 5.0) and **Divergence Gap** (default 25.0): neutral band for the volume split and the rank gap flagging divergence.
- Display toggles: **Show Dashboard**, **Range Boxes**, **Stage Background**, **Stage Labels**, **Cause & Effect Objective** (all on by default).

## Frequently Asked Questions

### Where do the schematic and wave tools fit in?

This build answers "where in the campaign are we". Event-level anatomy belongs to the dedicated schematics; the wave-by-wave effort ledger to [Wyckoff Wave & Volume Studies](https://www.luxalgo.com/library/indicator/wyckoff-wave-and-volume-studies/): stage here, events and waves there.

### What do the three law readings measure?

Supply & demand splits volume between advancing and declining bars; cause & effect tracks the range, then progress toward its objective. Effort vs result ranks volume against net progress, warning of absorption when effort outruns result.

### Does it require volume?

No. The cycle detection is pure price; the dashboard reports "No volume" for the laws where none exists. Note that spot forex reports tick counts as volume, which weakens those readings.

## Related indicators

- [Absorption](https://www.luxalgo.com/library/indicator/absorption/) (Wyckoff): markdown at https://www.luxalgo.com/library/indicator/absorption.md
- [Cause & Effect](https://www.luxalgo.com/library/indicator/cause-and-effect/) (Wyckoff): markdown at https://www.luxalgo.com/library/indicator/cause-and-effect.md
- [Trading-range Position](https://www.luxalgo.com/library/indicator/trading-range-position/) (Wyckoff): markdown at https://www.luxalgo.com/library/indicator/trading-range-position.md
- [Spring](https://www.luxalgo.com/library/indicator/spring/) (Wyckoff): markdown at https://www.luxalgo.com/library/indicator/spring.md
- [Wyckoff Accumulation Schematic](https://www.luxalgo.com/library/indicator/wyckoff-accumulation-schematic/) (Wyckoff): markdown at https://www.luxalgo.com/library/indicator/wyckoff-accumulation-schematic.md
- [Upthrust After Distribution](https://www.luxalgo.com/library/indicator/upthrust-after-distribution/) (Wyckoff): markdown at https://www.luxalgo.com/library/indicator/upthrust-after-distribution.md
- [Wyckoff Wave & Volume Studies](https://www.luxalgo.com/library/indicator/wyckoff-wave-and-volume-studies/) (Wyckoff): markdown at https://www.luxalgo.com/library/indicator/wyckoff-wave-and-volume-studies.md
- [Wyckoff Distribution Schematic](https://www.luxalgo.com/library/indicator/wyckoff-distribution-schematic/) (Wyckoff): markdown at https://www.luxalgo.com/library/indicator/wyckoff-distribution-schematic.md

---

Source: https://www.luxalgo.com/library/indicator/wyckoff-method/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/