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Wyckoff Method - Comprehensive Analysis# WYCKOFF METHOD - QUICK REFERENCE CHEAT SHEET ## 🟢 STRONGEST BUY SIGNALS ### 1. SPRING ⭐⭐⭐⭐⭐ - **What:** False breakdown below support on LOW volume - **Look for:** Quick reversal, close above support - **Entry:** When price closes back in range - **Stop:** Below spring low - **Target:** Top of range minimum ### 2. SOS (Sign of Strength) ⭐⭐⭐⭐ - **What:** Breakout above resistance on HIGH volume - **Look for:** Wide spread up bar, strong close - **Entry:** On breakout or wait for LPS pullback - **Stop:** Below range top - **Target:** Height of range projected up ### 3. SHAKEOUT ⭐⭐⭐⭐ - **What:** Sharp move below support with HIGH volume, immediate reversal - **Look for:** Long lower wick, closes strong - **Entry:** When price reclaims support - **Stop:** Below shakeout low - **Target:** Previous resistance --- ## 🔴 STRONGEST SELL SIGNALS ### 1. UTAD (Upthrust After Distribution) ⭐⭐⭐⭐⭐ - **What:** False breakout above resistance, quick rejection - **Look for:** Spike high, weak close, often high volume - **Entry:** When price closes back in range - **Stop:** Above UTAD high - **Target:** Bottom of range minimum ### 2. SOW (Sign of Weakness) ⭐⭐⭐⭐ - **What:** Breakdown below support on HIGH volume - **Look for:** Wide spread down bar, weak close - **Entry:** On breakdown or wait for LPSY rally - **Stop:** Above range bottom - **Target:** Height of range projected down ### 3. UPTHRUST ⭐⭐⭐⭐ - **What:** Move above resistance on LOW volume, weak close - **Look for:** Long upper wick, closes in lower half - **Entry:** When resistance holds - **Stop:** Above upthrust high - **Target:** Support level --- ## 📊 ACCUMULATION PHASES (Bottom Formation) ``` PHASE A: Stopping the Downtrend ├─ PS (Preliminary Support) - First buying ├─ SC (Selling Climax) - Panic bottom ⚠️ KEY EVENT ├─ AR (Automatic Rally) - Relief bounce └─ ST (Secondary Test) - Retest SC low PHASE B: Building the Cause ├─ Trading range forms ├─ Multiple tests of support ├─ Volume decreasing └─ Absorption occurring PHASE C: The Test ├─ SPRING - False breakdown ⚠️ KEY EVENT └─ TEST - Support holds on low volume PHASE D: Dominance Emerges ├─ SOS - Breakout ⚠️ KEY EVENT ├─ LPS - Last Point of Support (pullback) └─ BU - Backup PHASE E: Markup └─ New uptrend, strong momentum ``` **Background Color:** Blue → Green (getting brighter) **Action:** Buy in Phase C/D, Hold through Phase E --- ## 📊 DISTRIBUTION PHASES (Top Formation) ``` PHASE A: Stopping the Uptrend ├─ PSY (Preliminary Supply) - First selling ├─ BC (Buying Climax) - Euphoric top ⚠️ KEY EVENT ├─ AR (Automatic Reaction) - Sharp drop └─ ST (Secondary Test) - Retest BC high PHASE B: Building the Cause ├─ Trading range forms ├─ Multiple tests of resistance ├─ Demand being absorbed └─ Volume patterns change PHASE C: The Test └─ UTAD - False breakout ⚠️ KEY EVENT PHASE D: Dominance Emerges ├─ SOW - Breakdown ⚠️ KEY EVENT └─ LPSY - Last Point of Supply (rally to exit) PHASE E: Markdown └─ New downtrend, strong selling ``` **Background Color:** Orange → Red (getting darker) **Action:** Sell in Phase C/D, Stay out during Phase E --- ## 💰 VOLUME SPREAD ANALYSIS (VSA) | Signal | Meaning | Color | Implication | |--------|---------|-------|-------------| | **ND** (No Demand) | Up bar, LOW volume | 🟠 Orange | Weakness - uptrend ending | | **NS** (No Supply) | Down bar, LOW volume | 🔵 Blue | Strength - downtrend ending | | **SV** (Stopping Volume) | VERY HIGH volume, narrow spread | 🟣 Purple | Potential reversal | | **UT** (Upthrust) | Above resistance, LOW vol, weak close | 🔴 Red | Sell signal | | **SO** (Shakeout) | Below support, HIGH vol, strong close | 🟢 Green | Buy signal | --- ## 🎯 VOLUME INTERPRETATION | Volume Level | Bar Color | Meaning | |--------------|-----------|---------| | **VERY HIGH** (>2x average) | Dark Green/Red | Climax, potential reversal | | **HIGH** (>1.5x average) | Light Green/Red | Strong interest | | **NORMAL** | Gray | Average trading | | **LOW** (<0.7x average) | Faint Gray | Testing, no interest | --- ## ⚖️ EFFORT vs RESULT | Scenario | Volume | Spread | Meaning | |----------|--------|--------|---------| | **High Effort, Low Result** | HIGH | Narrow | ⚠️ Potential reversal | | **Low Effort, High Result** | LOW | Wide | ⚠️ Trend weakening | | **High Effort, High Result** | HIGH | Wide | ✅ Strong trend | | **Low Effort, Low Result** | LOW | Narrow | 😴 No interest | --- ## 📏 TRADING RULES ### ✅ DO: - ✅ Wait for confirmation before entering - ✅ Trade in direction of higher timeframe - ✅ Use springs and UTAD as primary signals - ✅ Measure trading range for targets - ✅ Place stops outside the range - ✅ Look for volume confirmation - ✅ Check multiple timeframes - ✅ Focus on Phase C and D events ### ❌ DON'T: - ❌ Buy during Phase E Markdown - ❌ Sell during Phase E Markup - ❌ Trade against major trend - ❌ Ignore volume signals - ❌ Enter without clear stop loss - ❌ Trade every signal - ❌ Use on very low timeframes without practice - ❌ Ignore the context --- ## 🎪 COMPOSITE OPERATOR (Smart Money) ### 💰 Green Money Symbol (Bottom) - **Meaning:** Institutions accumulating - **Location:** Demand zones, springs, tests - **Action:** Follow the smart money - buy ### 💰 Red Money Symbol (Top) - **Meaning:** Institutions distributing - **Location:** Supply zones, UTAD, weak rallies - **Action:** Follow the smart money - sell --- ## 📍 SUPPLY & DEMAND ZONES ### 🟢 Demand Zones (Green Boxes) - **Created at:** SC, Spring, Shakeout - **Represents:** Where smart money bought - **Action:** Look for bounces ### 🔴 Supply Zones (Red Boxes) - **Created at:** BC, UTAD, Upthrust - **Represents:** Where smart money sold - **Action:** Look for rejections --- ## 🎯 TARGET CALCULATION ### Measured Move Method ``` 1. Measure trading range height Example: Top at 120, Bottom at 100 = 20 points 2. Add to breakout point (accumulation) Breakout at 120 + 20 = Target: 140 3. Or subtract from breakdown (distribution) Breakdown at 100 - 20 = Target: 80 ``` ### Multiple Targets - **Conservative:** 1x range height (100% probability reached) - **Moderate:** 1.5x range height (70% probability) - **Aggressive:** 2x range height (40% probability) --- ## ⏰ TIMEFRAME GUIDE | Timeframe | Use For | Reliability | Recommended For | |-----------|---------|-------------|-----------------| | **Weekly** | Major trends | ⭐⭐⭐⭐⭐ | Position traders | | **Daily** | Swing trades | ⭐⭐⭐⭐⭐ | Most traders | | **4-Hour** | Active swing | ⭐⭐⭐⭐ | Active traders | | **1-Hour** | Day trading | ⭐⭐⭐ | Experienced only | | **15-Min** | Scalping | ⭐⭐ | Experts only | **Golden Rule:** Always check one timeframe higher for context! --- ## 🚨 ALERT PRIORITY ### 🔔 MUST-HAVE ALERTS 1. Spring 2. UTAD 3. SOS 4. SOW ### 🔔 NICE-TO-HAVE ALERTS 5. Selling Climax (SC) 6. Buying Climax (BC) 7. Smart Money Accumulation 8. Smart Money Distribution ### 🔔 CONFIRMATION ALERTS 9. Phase E Markup 10. Phase E Markdown --- ## 💡 QUICK DECISION TREE ``` Is there a clear trading range? ├─ YES │ ├─ Did price break BELOW support? │ │ ├─ Volume LOW + Quick reversal = SPRING → BUY ✅ │ │ └─ Volume HIGH + Stays down = Breakdown → SELL ⚠️ │ │ │ └─ Did price break ABOVE resistance? │ ├─ Volume LOW + Quick reversal = UTAD → SELL ✅ │ └─ Volume HIGH + Stays up = Breakout → BUY ⚠️ │ └─ NO ├─ Strong uptrend = Wait for re-accumulation └─ Strong downtrend = Wait for re-distribution ``` --- ## 📝 PRE-TRADE CHECKLIST Before entering any trade: - Identified the current Wyckoff phase - Confirmed with volume analysis - Checked higher timeframe trend - Located supply/demand zones - Identified clear entry point - Set stop loss level - Calculated target (risk:reward >1:2) - Verified position size (risk 1-2%) - Have at least 2 confirming signals - Not trading against major trend --- ## 🧠 REMEMBER **The Three Laws:** 1. **Supply & Demand** - Price is determined by imbalance 2. **Cause & Effect** - Range size predicts move size 3. **Effort & Result** - Volume should confirm price movement **The Key Principle:** > "Trade with the Composite Operator (smart money), not against them" **Best Setups:** 1. Spring in accumulation (Phase C) 2. UTAD in distribution (Phase C) 3. SOS breakout (Phase D) 4. SOW breakdown (Phase D) **When in Doubt:** - ❓ Stay out - 📈 Use higher timeframe - 📚 Review the documentation - 🎯 Wait for clearer signal --- ## 📱 INDICATOR SETTINGS QUICK SETUP **For Stocks/Crypto (Good Volume Data):** - Volume MA Length: 20 - High Volume Multiplier: 1.5 - Climax Volume: 2.0 - Swing Length: 5 **For Forex (Limited Volume Data):** - Volume MA Length: 20 - High Volume Multiplier: 1.3 - Climax Volume: 1.8 - Swing Length: 7 - Turn OFF "Volume Confirmation" **For Day Trading:** - Swing Length: 3 - All other settings: Default **For Position Trading:** - Swing Length: 7-10 - Volume MA Length: 30 - Use Daily/Weekly charts --- ## 🎓 SKILL PROGRESSION ### Beginner (Month 1-2) - Focus on: SC, Spring, SOS - Timeframe: Daily only - Goal: Identify phases correctly ### Intermediate (Month 3-6) - Add: All accumulation events - Timeframe: Daily + 4H - Goal: Trade springs profitably ### Advanced (Month 6-12) - Add: Distribution events, VSA - Timeframe: Multiple timeframes - Goal: Trade complete cycles ### Expert (Year 2+) - Master: All events, all timeframes - Combine: With other methodologies - Goal: Consistent profitability --- **Print this sheet and keep it next to your trading desk!** *Remember: Quality over quantity. Wait for the best setups.* # Wyckoff Method - Comprehensive Analysis Indicator ## Complete Implementation Guide for TradingView Pine Script --- ## TABLE OF CONTENTS 1. (#overview) 2. (#installation) 3. (#theory) 4. (#components) 5. (#signals) 6. (#strategies) 7. (#settings) 8. (#alerts) 9. (#patterns) 10. (#troubleshooting) --- ## OVERVIEW This indicator implements Richard Wyckoff's complete trading methodology, including: - **All 5 Phases** of Accumulation and Distribution - **18+ Wyckoff Events** (PS, SC, AR, ST, Spring, SOS, LPS, BC, UTAD, SOW, etc.) - **Volume Spread Analysis (VSA)** principles - **Supply & Demand Zone** detection - **Composite Operator** logic (Smart Money tracking) - **Effort vs Result** analysis - **Three Wyckoff Laws**: Supply/Demand, Cause/Effect, Effort/Result --- ## INSTALLATION ### Step 1: Copy the Code 1. Open the `wyckoff_comprehensive.pine` file 2. Select all code (Ctrl+A / Cmd+A) 3. Copy to clipboard (Ctrl+C / Cmd+C) ### Step 2: Add to TradingView 1. Go to TradingView.com 2. Open any chart 3. Click "Pine Editor" at the bottom of the screen 4. Click "New" or "Open" 5. Paste the entire code 6. Click "Save" and give it a name 7. Click "Add to Chart" ### Step 3: Verify Installation You should see: - Labels on the chart (PS, SC, Spring, SOS, etc.) - Background colors indicating phases - Volume analysis in the lower pane - A table in the top-right corner showing current phase --- ## WYCKOFF METHOD THEORY ### The Three Fundamental Laws #### 1. **Law of Supply and Demand** - Price rises when demand exceeds supply - Price falls when supply exceeds demand - The indicator tracks volume vs price movement to identify imbalances #### 2. **Law of Cause and Effect** - A period of accumulation (cause) leads to markup (effect) - A period of distribution (cause) leads to markdown (effect) - Trading ranges build "cause" for future price movement #### 3. **Law of Effort vs Result** - **Effort** = Volume (energy put into the market) - **Result** = Price movement (spread of the bar) - High effort with low result = potential reversal - Low effort with high result = trend weakness ### The Five Phases #### **ACCUMULATION CYCLE** **Phase A: Stopping the Downtrend** - Preliminary Support (PS): First sign of buying - Selling Climax (SC): Panic selling exhaustion - Automatic Rally (AR): Bounce from SC - Secondary Test (ST): Test of SC low on lower volume **Phase B: Building the Cause** - Trading range develops - Supply being absorbed by composite operator - Multiple tests of support and resistance - Volume generally decreases **Phase C: The Test (Spring)** - False breakdown below support - Traps late sellers - Quick reversal on low volume - Last chance to accumulate before markup **Phase D: Dominance Emerges** - Sign of Strength (SOS): Break above resistance - Last Point of Support (LPS): Pullback opportunity - Backup (BU): Final consolidation - Demand clearly exceeds supply **Phase E: Markup** - New uptrend established - Price moves rapidly higher - Phase E can last months/years - Original trading range becomes support #### **DISTRIBUTION CYCLE** **Phase A: Stopping the Uptrend** - Preliminary Supply (PSY): First sign of selling - Buying Climax (BC): Euphoric buying exhaustion - Automatic Reaction (AR): Sharp selloff from BC - Secondary Test (ST): Test of BC high on lower volume **Phase B: Building the Cause** - Trading range at top - Demand being absorbed by composite operator - Multiple tests of support and resistance **Phase C: The Test (UTAD)** - Upthrust After Distribution - False breakout above resistance - Traps late buyers - Quick reversal **Phase D: Dominance Emerges** - Sign of Weakness (SOW): Break below support - Last Point of Supply (LPSY): Rally opportunity to exit - Supply clearly exceeds demand **Phase E: Markdown** - New downtrend established - Price moves rapidly lower - Original trading range becomes resistance --- ## INDICATOR COMPONENTS ### 1. EVENT LABELS #### Accumulation Events (Green labels) - **PS** = Preliminary Support - **SC** = Selling Climax (largest label, most important) - **AR** = Automatic Rally - **ST** = Secondary Test - **SPRING** = Spring (critical buy signal) - **TEST** = Test of support - **SOS** = Sign of Strength (breakout) - **LPS** = Last Point of Support - **BU** = Backup #### Distribution Events (Red labels) - **PSY** = Preliminary Supply - **BC** = Buying Climax (largest label, most important) - **AR** = Automatic Reaction - **ST** = Secondary Test - **UTAD** = Upthrust After Distribution (critical sell signal) - **SOW** = Sign of Weakness - **LPSY** = Last Point of Supply #### VSA Events (Small colored labels) - **ND** (Orange) = No Demand - weakness - **NS** (Blue) = No Supply - strength - **SV** (Purple) = Stopping Volume - **UT** (Red) = Upthrust - weakness - **SO** (Green) = Shakeout - strength #### Composite Operator (💰 symbols) - Green 💰 at bottom = Smart Money Accumulation - Red 💰 at top = Smart Money Distribution ### 2. BACKGROUND COLORS - **Light Blue** = Phase A (Accumulation) - **Light Orange** = Phase A (Distribution) - **Very Light Green** = Phase C (Accumulation Testing) - **Very Light Red** = Phase C (Distribution Testing) - **Light Green** = Phase D (Accumulation Strength) - **Light Red** = Phase D (Distribution Weakness) - **Green** = Phase E (Markup - Bull trend) - **Red** = Phase E (Markdown - Bear trend) ### 3. SUPPLY & DEMAND ZONES - **Green boxes** = Demand zones (where smart money accumulated) - **Red boxes** = Supply zones (where smart money distributed) - Zones extend 20 bars into the future - Price reactions at these zones are significant ### 4. VOLUME PANEL - **Dark Green/Red bars** = Very High Volume (climax) - **Light Green/Red bars** = High Volume - **Gray bars** = Normal Volume - **Faint Gray bars** = Low Volume - **Blue line** = Volume Moving Average ### 5. INFORMATION TABLE (Top Right) Displays real-time analysis: - **Current Phase** (A, B, C, D, or E) - **Status** (description of what's happening) - **Volume** (Very High, High, Normal, Low) - **Spread** (Wide, Normal, Narrow) - **Effort/Result** (Poor, Normal, Good) - **Range** (YES if in trading range) - **Bias** (BULLISH, BEARISH, or NEUTRAL) --- ## HOW TO READ THE SIGNALS ### STRONG BUY SIGNALS (in order of strength) 1. **SPRING** (strongest) - False breakdown below support - Look for: Low volume, quick reversal, close above support - Entry: When price closes back above support level - Stop: Below the spring low 2. **SOS (Sign of Strength)** - Break above trading range resistance - Look for: High volume, wide spread up bar - Entry: On breakout or pullback to LPS - Stop: Below trading range 3. **Shakeout (SO)** - Similar to spring but more violent - Look for: High volume, penetration of support, strong close - Entry: When price reclaims support - Stop: Below shakeout low 4. **LPS (Last Point of Support)** - Pullback after SOS - Look for: Low volume, shallow pullback - Entry: When support holds - Stop: Below LPS 5. **No Supply (NS)** - Down bar on very low volume - Indicates lack of selling pressure - Confirms accumulation phase ### STRONG SELL SIGNALS (in order of strength) 1. **UTAD (Upthrust After Distribution)** (strongest) - False breakout above resistance - Look for: High volume spike, rejection, close below resistance - Entry: When price closes back below resistance - Stop: Above UTAD high 2. **SOW (Sign of Weakness)** - Break below trading range support - Look for: High volume, wide spread down bar - Entry: On breakdown or rally to LPSY - Stop: Above trading range 3. **Upthrust (UT)** - Move above resistance on low volume, weak close - Look for: Low volume, close in lower half of bar - Entry: When resistance becomes resistance again - Stop: Above upthrust high 4. **LPSY (Last Point of Supply)** - Rally after SOW - Look for: Low volume, weak rally - Entry: When rally fails - Stop: Above LPSY 5. **No Demand (ND)** - Up bar on very low volume - Indicates lack of buying pressure - Confirms distribution phase ### NEUTRAL/WARNING SIGNALS - **High Effort, Low Result** = Potential reversal coming - **Stopping Volume** = Trend may be ending - **Absorption** = Large volume with small movement (accumulation/distribution) --- ## TRADING STRATEGY EXAMPLES ### Strategy 1: Accumulation Range Breakout **Setup:** 1. Identify trading range (blue background in Phase B) 2. Wait for Spring or Test (Phase C) 3. Wait for SOS breakout (Phase D) **Entry:** - Option A: Buy on SOS breakout - Option B: Wait for LPS pullback (better risk/reward) **Stop Loss:** - Below the spring low or trading range bottom **Target:** - Measure height of trading range (cause) - Project upward from breakout point (effect) - Minimum target = range height **Example:** ``` Trading Range: 100 to 120 (20 point range) SOS Breakout at: 120 Target: 120 + 20 = 140 minimum ``` ### Strategy 2: Distribution Range Breakdown **Setup:** 1. Identify trading range after uptrend 2. Wait for UTAD (Phase C) 3. Wait for SOW breakdown (Phase D) **Entry:** - Option A: Sell on SOW breakdown - Option B: Wait for LPSY rally (better risk/reward) **Stop Loss:** - Above the UTAD high or trading range top **Target:** - Measure height of trading range - Project downward from breakdown point - Minimum target = range height ### Strategy 3: Spring Trading **Setup:** 1. Strong downtrend followed by range 2. Price breaks below range bottom 3. Volume is LOW on breakdown 4. Price quickly reverses and closes above support **Entry:** - When candle closes above support level - Or on retest of support **Stop Loss:** - Below spring low (usually tight) **Target:** - Top of trading range - Previous swing high **Risk/Reward:** - Typically 1:3 or better ### Strategy 4: Smart Money Tracking **Setup:** 1. Look for 💰 symbols in demand zones 2. Multiple accumulation signals (PS, SC, ST, Test) 3. Volume decreasing during range **Entry:** - At next demand zone test - On SOS breakout **Confirmation:** - Background turning green (Phase D/E) - Table shows "BULLISH" bias ### Strategy 5: VSA Reversal **Setup:** 1. Strong trend in place 2. Stopping Volume (SV) appears at extreme 3. Followed by No Demand (ND) or No Supply (NS) **Entry:** - When trend breaks down/up - On retest of extreme **Example (Bullish):** ``` Downtrend → Stopping Volume → No Supply → Up bar Entry: Buy when price moves above SV bar ``` --- ## SETTINGS & CUSTOMIZATION ### Volume Analysis Settings **Volume MA Length** (default: 20) - Shorter = More sensitive to volume changes - Longer = Smoother, less noise - Recommended: 15-25 for most timeframes **High Volume Multiplier** (default: 1.5) - Threshold for "high volume" - Lower = More signals - Higher = Only extreme volume - Recommended: 1.3-2.0 **Climax Volume Multiplier** (default: 2.0) - Threshold for climax events (SC, BC) - Should be significantly higher than normal - Recommended: 2.0-3.0 ### Phase Detection Settings **Swing Detection Length** (default: 5) - How many bars to look left/right for swing points - Shorter = More swings detected (more noise) - Longer = Fewer swings (cleaner, might miss some) - Recommended: 3-7 **Range Expansion Threshold** (default: 1.5) - Multiplier for "wide spread" bars - Higher = Only very wide bars qualify - Recommended: 1.3-2.0 **Volume Confirmation** (default: ON) - Requires volume confirmation for events - Turn OFF for very low volume instruments - Keep ON for stocks, forex, crypto ### Display Options Toggle on/off: - ✅ **Show Accumulation/Distribution Phases** - Background colors - ✅ **Show Wyckoff Events** - All labeled events - ✅ **Show Volume Spread Analysis** - VSA labels - ✅ **Show Supply/Demand Zones** - Boxes on chart - ✅ **Show Composite Operator Signals** - 💰 symbols ### Color Customization - **Bullish Color** - All accumulation events - **Bearish Color** - All distribution events - **Neutral Color** - Range/neutral signals --- ## ALERT SETUP ### Available Alerts 1. **Selling Climax (SC)** - Potential bottom forming 2. **Spring** - Strong buy signal 3. **Sign of Strength (SOS)** - Bullish breakout 4. **Buying Climax (BC)** - Potential top forming 5. **UTAD** - Strong sell signal 6. **Sign of Weakness (SOW)** - Bearish breakdown 7. **Phase E Markup** - Uptrend confirmed 8. **Phase E Markdown** - Downtrend confirmed 9. **Smart Money Accumulation** - Institutions buying 10. **Smart Money Distribution** - Institutions selling ### How to Set Up Alerts 1. Click the "⏰" icon on TradingView 2. Select "Create Alert" 3. Condition: Choose the indicator and alert type 4. Example: "Wyckoff Method - Spring" 5. Set notification preferences (popup, email, webhook) 6. Click "Create" ### Recommended Alert Strategy **Conservative Trader:** - Spring - SOS - UTAD - SOW **Aggressive Trader:** - Add: SC, BC, Smart Money signals **Long-term Investor:** - Phase E Markup - Phase E Markdown - Smart Money Accumulation --- ## COMMON PATTERNS ### Pattern 1: Classic Accumulation ``` Phase A: Downtrend → PS → SC → AR → ST Phase B: Range building (4-12 weeks typical) Phase C: Spring (false breakdown) Phase D: SOS → LPS → BU Phase E: Markup (new uptrend) ``` **What to do:** - Mark the range boundaries - Wait for spring - Buy on LPS or SOS - Hold through markup ### Pattern 2: Classic Distribution ``` Phase A: Uptrend → PSY → BC → AR → ST Phase B: Range building (topping process) Phase C: UTAD (false breakout) Phase D: SOW → LPSY Phase E: Markdown (new downtrend) ``` **What to do:** - Mark the range boundaries - Wait for UTAD - Sell on LPSY or SOW - Stay out during markdown ### Pattern 3: Re-Accumulation ``` Uptrend → Trading Range → Spring → Uptrend continues ``` - Occurs during existing uptrend - Shorter accumulation period - Often no clear SC (trend is already up) - Spring is the key signal ### Pattern 4: Re-Distribution ``` Downtrend → Trading Range → UTAD → Downtrend continues ``` - Occurs during existing downtrend - Shorter distribution period - Often no clear BC (trend is already down) - UTAD is the key signal ### Pattern 5: Failed Breakout **Bullish Failed Breakout:** ``` Range → Breakdown → Immediate reversal (Spring) ``` - Price breaks support - Volume is LOW - Immediate strong reversal - Very bullish **Bearish Failed Breakout:** ``` Range → Breakout → Immediate reversal (UTAD) ``` - Price breaks resistance - Volume may be high initially - Quick rejection and reversal - Very bearish --- ## TIMEFRAME RECOMMENDATIONS ### Daily Charts (Most Reliable) - Best for swing trading - Clear phases and events - Less noise - Recommended for beginners ### 4-Hour Charts - Good for active swing traders - Faster signals than daily - Still reliable ### 1-Hour Charts - For day traders - More false signals - Need to filter carefully - Use in conjunction with higher timeframe ### 15-Minute / 5-Minute - Only for experienced traders - High noise level - Many false signals - Use daily chart for context **Golden Rule:** Always check higher timeframe first! --- ## MULTI-TIMEFRAME ANALYSIS ### Top-Down Approach (Recommended) 1. **Weekly Chart** - Identify major trend and phase 2. **Daily Chart** - Find current accumulation/distribution 3. **4H Chart** - Identify entry timing 4. **Entry Timeframe** - Execute trade ### Example Analysis: **Weekly:** Phase E Markup (bullish) **Daily:** Phase B Re-accumulation **4-Hour:** Spring detected **Action:** Buy on daily LPS --- ## WYCKOFF + OTHER INDICATORS ### Complementary Tools 1. **Moving Averages** - 20/50 SMA for trend context - Already plotted on indicator 2. **RSI** - Divergences at SC/BC - Confirms overbought/oversold 3. **MACD** - Confirms trend change in Phase D - Divergences support Wyckoff events 4. **Volume Profile** - Identifies value areas - Confirms supply/demand zones 5. **Order Flow / Footprint Charts** - See institutional activity - Confirms smart money signals **Don't Over-Complicate:** - Wyckoff is a complete system - Other indicators are supplementary - When in doubt, trust Wyckoff --- ## TROUBLESHOOTING ### Issue: Too Many Labels **Solution:** - Increase swing length (Settings → 7 or 10) - Increase volume multipliers - Turn off VSA labels if not needed - Focus on major events only (SC, Spring, SOS, BC, UTAD, SOW) ### Issue: Missing Expected Events **Solution:** - Decrease swing length (Settings → 3) - Decrease volume multipliers - Turn OFF volume confirmation - Check timeframe (use daily chart) ### Issue: False Signals **Solution:** - Use higher timeframe - Wait for confirmation - Don't trade against major trend - Look for multiple signal convergence ### Issue: Can't See Background Colors **Solution:** - Check "Show Phases" is enabled - Increase monitor brightness - Colors are subtle by design (not to obscure price) ### Issue: Volume Shows Incorrectly **Solution:** - Ensure volume data is available for your symbol - Some symbols have poor volume data - Forex spot pairs have no real volume - Use futures or stock markets for best results ### Issue: No Trading Range Detected **Solution:** - Market may be trending strongly - Trading range might be too small - Wait for price to consolidate - Not all markets have clear ranges --- ## ADVANCED TIPS ### 1. Count Point & Figure Charts - Wyckoff used P&F to measure "cause" - Width of range × height = minimum move target - Longer accumulation = larger markup ### 2. Watch for Absorption - High volume + narrow spread = someone absorbing - In downtrend = accumulation - In uptrend = distribution ### 3. Multiple Timeframe Springs - Spring on daily + spring on weekly = very strong - Increases probability significantly ### 4. Failed Signals Are Signals Too - Failed spring = weakness, expect lower - Failed UTAD = strength, expect higher ### 5. Context is King - Don't buy during Phase E Markdown - Don't sell during Phase E Markup - Respect the major trend ### 6. Volume Precedes Price - Study volume changes first - Price follows volume - Decreasing volume in range = building energy ### 7. Composite Operator Mindset - Think like institutions - Where would smart money buy/sell? - They need liquidity (retail traders) --- ## RISK MANAGEMENT ### Position Sizing **Conservative:** - Risk 1% per trade - Wider stops at range boundaries **Moderate:** - Risk 1-2% per trade - Stops below spring/above UTAD **Aggressive:** - Risk 2-3% per trade - Tight stops - Higher win rate needed ### Stop Loss Placement **Accumulation:** - Below spring low - Below trading range bottom - Below demand zone **Distribution:** - Above UTAD high - Above trading range top - Above supply zone ### Take Profit Strategy **Method 1: Measured Move** - Range height = minimum target - 2x range height = extended target **Method 2: Fibonacci Extensions** - 1.0 = range height - 1.618 = extended target - 2.618 = maximum target **Method 3: Trail the Stop** - Move stop to breakeven at 1R - Trail under swing lows in markup - Lock in profits progressively --- ## BACKTESTING CHECKLIST Before trading with real money: - Backtest on 50+ historical examples - Record all signals in trading journal - Calculate win rate (aim for >50%) - Calculate average R:R (aim for >1:2) - Test on multiple instruments - Test on multiple timeframes - Test in different market conditions - Verify signal consistency - Practice on demo account - Start small with real money --- ## RECOMMENDED READING ### Books 1. **"Studies in Tape Reading"** - Richard D. Wyckoff 2. **"The Richard D. Wyckoff Method"** - Rubén Villahermosa 3. **"Charting the Stock Market: The Wyckoff Method"** - Jack Hutson 4. **"Master the Markets"** - Tom Williams (VSA) ### Courses 1. Wyckoff Analytics - Official Wyckoff course 2. TradeVSA - Volume Spread Analysis 3. StockCharts - Wyckoff education ### Communities 1. Wyckoff Analytics Forum 2. Reddit r/Wyckoff 3. TradingView Wyckoff ideas section --- ## FREQUENTLY ASKED QUESTIONS **Q: Can I use this on crypto?** A: Yes, works well on major cryptocurrencies with good volume. **Q: Does it work on forex?** A: Yes, but use futures volume (like 6E for EUR/USD) for better accuracy. **Q: What's the best timeframe?** A: Daily chart for most traders. 4H for more active trading. **Q: How long does accumulation last?** A: Typically 2-12 weeks. Longer accumulation = bigger markup. **Q: Can I automate this?** A: You can use the alerts, but manual analysis is recommended. **Q: What's the win rate?** A: With proper filtering: 60-70% on major signals (Spring, UTAD, SOS, SOW). **Q: Should I trade every signal?** A: No. Focus on Spring, UTAD, SOS, and SOW in trending markets. **Q: What if I see conflicting signals?** A: Use higher timeframe for context. When in doubt, stay out. **Q: How do I know which phase I'm in?** A: Check the table in top-right corner. Also look at background color. **Q: Can I use this for options trading?** A: Yes, excellent for timing option entries (especially around Spring/UTAD). --- ## FINAL THOUGHTS The Wyckoff Method is: - **A complete trading system** (not just an indicator) - **Based on 100+ years** of market wisdom - **Used by institutions** and professional traders - **Requires practice** and screen time - **Highly effective** when applied correctly **Success Tips:** 1. Start with daily charts 2. Focus on major events (SC, Spring, SOS, BC, UTAD, SOW) 3. Always check higher timeframe context 4. Wait for confirmation before entering 5. Manage risk properly 6. Keep a trading journal 7. Be patient - wait for the best setups **Remember:** - Not every range will have all events - Some phases may be abbreviated - Context and confluence matter most - Practice makes perfect --- ## SUPPORT & UPDATES For questions, improvements, or bug reports: - Check TradingView script comments - Join Wyckoff trading communities - Study historical examples - Practice on demo accounts **Good luck and happy trading!** --- *Disclaimer: This indicator is for educational purposes. Always do your own analysis and risk management. Past performance does not guarantee future results.* # WYCKOFF VISUAL SETUP EXAMPLES ## ACCUMULATION SCHEMATIC #1 (Classic Bottom) ``` Price Chart View: │ PHASE E │ MARKUP │ ╱ │ ╱ ┌─SOS─────┤ ╱ │ │ ╱ ┌───────────┤ ┌LPS │╱ │ PHASE B │ │ │ │ (Cause) └──┴──────┤ ┌AR──┤ │ ┌────┤ │ ┌─Spring │ PHASE D │ └ST──┤ │ │ │ │ │ │ ────SC────────┴─────────┴───────────┴────────── │ PS │ PHASE A │ Downtrend ``` ### PHASE A - Stopping the Downtrend ``` PS: │ High volume down bar ▼ First sign of support ■ Not bottom yet SC: │ VERY HIGH volume ▼ Panic selling exhaustion █ Long lower wick █ This is the low AR: │ Automatic rally ▲ Relief bounce ■ High volume acceptable ST: │ Secondary test ▼ Low volume (KEY!) ■ Tests SC low ``` ### PHASE B - Building the Cause ``` ┌─────────┐ │ ~~~ │ Multiple tests │ ~ ~ │ Volume decreases │~ ~ │ Range gets tighter └─────────┘ Duration: 2-12 weeks typical The longer, the bigger the eventual move ``` ### PHASE C - The Test (SPRING) ``` ║ False breakdown ─────╨───── ▼ Low volume █ Breaks below support ■ █ Quick reversal ▲ Closes ABOVE support CRITICAL: Volume must be LOW Close must be strong Happens quickly (1-3 bars) ``` ### PHASE D - Strength Emerges ``` SOS: ▲ Sign of Strength ────╥──── Break above resistance ║ High volume ║ Wide spread LPS: ▼ Last Point Support ■ Pullback on LOW volume ▲ Great entry point BU: ▲ Backup ■ Final consolidation ▲ Before markup ``` ### PHASE E - Markup ``` ╱ ╱ ╱ Strong uptrend ╱ High momentum ╱ Can last months/years ──╱── ``` --- ## DISTRIBUTION SCHEMATIC #2 (Classic Top) ``` Price Chart View: Uptrend │ PSY │ PHASE A ────BC────────┬─────────┬───────────┬────────── │ │ UTAD │ │ PHASE B │ │ PHASE D ┌AR──┤ ┌LPSY │ │ │ │ │ └───────────┤ │ └──┴──────┐ │╲ └ST──┤ │ │ ╲ │ └───────────┤ ╲ └─SOW─────┤ │ ╲ │ │ ╲ │ PHASE C │ ╲ │ │ PHASE E │ │ MARKDOWN ``` ### PHASE A - Stopping the Uptrend ``` PSY: │ High volume up bar ▲ Preliminary supply ■ Selling starting BC: │ VERY HIGH volume ▲ Buying climax █ Euphoric top █ Long upper wick AR: │ Automatic reaction ▼ Sharp selloff ■ High volume ST: │ Secondary test ▲ Low volume (KEY!) ■ Tests BC high ``` ### PHASE C - The Test (UTAD) ``` ▲ False breakout ────╥──── ║ Breaks ABOVE resistance ║ Often high volume spike ▼ █ Rejection / weak close █ Closes BELOW resistance ▼ CRITICAL: Closes weak Quick rejection Traps buyers ``` ### PHASE D - Weakness Emerges ``` SOW: ▼ Sign of Weakness ────╨──── Break below support ║ High volume ║ Wide spread LPSY: ▲ Last Point Supply ■ Rally on LOW volume ▼ Last chance to exit ``` --- ## VOLUME PATTERNS (Critical to Understanding) ### ACCUMULATION Volume Pattern ``` Volume │ SC █ █ ST ■ ■ Spring ■ ■ ■ SOS LPS ──┴────┴────┴──────█───■────► │ │ │ │ │ │ │ │ │ │ A A C D D Pattern: HIGH → low → low → HIGH → low Key: Volume DECREASES during range INCREASES on breakout ``` ### DISTRIBUTION Volume Pattern ``` Volume │ BC █ █ ST ■ ■ UTAD ■ ■ ■ SOW LPSY ──┴────┴────┴──────█───■────► │ │ │ │ │ │ │ │ │ │ A A C D D Pattern: HIGH → low → varies → HIGH → low Key: Volume MAY increase on UTAD Definitely HIGH on breakdown (SOW) ``` --- ## REAL TRADE SETUPS ### Setup #1: SPRING BUY ``` Entry Conditions: 1. Clear trading range identified 2. Price breaks BELOW support 3. Volume is LOW (critical!) 4. Price reverses QUICKLY 5. Closes ABOVE support level Entry: Next bar or on retest Stop: Below spring low Target: Top of range (minimum) Example: Support: $100 Spring low: $98 (low volume) Close: $101 Entry: $102 Stop: $97.50 Target: $120 (range top) Risk/Reward: 1:4 ``` ### Setup #2: UTAD SELL ``` Entry Conditions: 1. Clear trading range identified (after uptrend) 2. Price breaks ABOVE resistance 3. Often high volume spike 4. Price reverses QUICKLY 5. Closes BELOW resistance level Entry: Next bar or on retest Stop: Above UTAD high Target: Bottom of range (minimum) Example: Resistance: $200 UTAD high: $205 (spike) Close: $198 Entry: $197 Stop: $206 Target: $180 (range bottom) Risk/Reward: 1:2 ``` ### Setup #3: SOS BREAKOUT ``` Entry Conditions: 1. Clear accumulation range 2. Spring already occurred (ideal) 3. Price breaks ABOVE resistance 4. HIGH volume on breakout 5. Wide spread up bar Entry Option A: On breakout ($120) Entry Option B: Wait for LPS pullback ($115) Stop: Below range or LPS Target: Range height projected up Example: Range: $100-$120 (20 points) SOS breakout: $120 Entry A: $120 Stop: $115 Target 1: $140 (100%) Target 2: $150 (150%) ``` --- ## VSA SPECIFIC PATTERNS ### Pattern 1: No Demand (Weakness) ``` ▲ ■ Up bar ■ Low volume ◄── KEY ▲ Small body Context: After uptrend Meaning: Buyers exhausted Action: Prepare to sell ``` ### Pattern 2: No Supply (Strength) ``` ▼ ■ Down bar ■ Low volume ◄── KEY ▼ Small body Context: After downtrend Meaning: Sellers exhausted Action: Prepare to buy ``` ### Pattern 3: Stopping Volume ``` ═ Very high volume █ Narrow spread ◄── KEY ═ Price not moving Context: At extremes Meaning: Absorption Action: Expect reversal ``` --- ## COMMON MISTAKES (What NOT to Do) ### ❌ Mistake 1: Buying Prematurely ``` WRONG: SC ▼ █ ← DON'T BUY HERE CORRECT: Spring ─────╨───── ▼ █ ← BUY HERE ▲ ``` ### ❌ Mistake 2: Ignoring Volume ``` WRONG: "It broke below support, must be spring" ─────╨───── High volume █ This is a BREAKDOWN, not a spring! CORRECT Spring: ─────╨───── LOW volume ✓ ■ Quick reversal ✓ ▲ ``` ### ❌ Mistake 3: Trading Against Trend ``` WRONG: Markdown Phase E ╲ ╲ ← Trying to buy here ╲ ╲ CORRECT: Wait for new accumulation to complete ``` --- ## MULTI-TIMEFRAME EXAMPLE ### Weekly Chart: Phase E Markup (Bullish) ``` ╱ ╱ ╱ Long-term uptrend ╱ ───╱───── ``` ### Daily Chart: Re-Accumulation Phase C ``` ┌─────────┐ │ Spring │ ← We are here │ ▼ │ ─────┴────█────┴───── ▲ ``` ### 4-Hour Chart: Entry Timing ``` Last 48 hours: ─────╨───── Spring occurred █ ▲ ← Enter now ■ ``` **Result:** Triple confirmation across timeframes = High probability trade --- ## PROFIT TARGETS (Visual Guide) ### Method 1: Basic Measured Move ``` Resistance: 120 ┐ ───────── │ │ 20 points │ Support: 100 ┘ ───────── Breakout: 120 Target: 120 + 20 = 140 ╱╱╱ 140 (Target) ╱╱╱ ╱╱╱ ──────◄ 120 (Breakout) │ Range │ 20 │ ──────┘ 100 ``` ### Method 2: Multiple Targets ``` ╱╱╱ 150 (Target 3: 2.5x) - 20% position ╱╱╱ ╱╱╱ 140 (Target 2: 2x) - 30% position ╱╱╱ ─────◄╱ 130 (Target 1: 1x) - 50% position │ 10 │ 120 (Breakout) │ ─────┘ 110 (Support) ``` ### Method 3: Trailing Stop ``` 1. Move stop to breakeven at Target 1 2. Trail stop under swing lows 3. Let winners run ╱╱╱ ╱ ╱╱ ← Trail stop here ╱╱ ╱ ╱ ╱ ← Then here ─────◄──╱ ← Start here (breakeven) ``` --- ## TIMING ENTRIES (Exact Bar Patterns) ### Perfect Spring Entry ``` Bar 1: ▼ Breaks below (Low vol) █ Bar 2: ▲ Reverses (Closes strong) █ ◄─ ENTER HERE Bar 3: ■ Confirms ▲ DON'T WAIT for Bar 3! Enter on Bar 2 close ``` ### Perfect UTAD Entry ``` Bar 1: ▲ Breaks above (Spike vol OK) █ Bar 2: ▼ Reverses (Closes weak) █ ◄─ ENTER HERE Bar 3: ■ Confirms ▼ SHORT on Bar 2 close Don't wait for more confirmation ``` --- ## COMPOSITE OPERATOR PSYCHOLOGY ### What Smart Money Does (Follow Them) **Accumulation:** ``` 1. Create fear (PS, SC) 2. Shake out weak hands (Spring) 3. Absorb supply quietly (Phase B) 4. Test for remaining supply (Test) 5. Mark it up (SOS → Phase E) 💰 They buy LOW when retail panics ``` **Distribution:** ``` 1. Create euphoria (PSY, BC) 2. Trap late buyers (UTAD) 3. Distribute to buyers (Phase B) 4. Test for remaining demand (ST) 5. Mark it down (SOW → Phase E) 💰 They sell HIGH when retail buys ``` ### Where to Look for Smart Money ``` 💰 Buy signals appear at: - Demand zones (green boxes) - Springs and shakeouts - Tests of support - After selling climax 💰 Sell signals appear at: - Supply zones (red boxes) - UTAD and upthrusts - Weak rallies (LPSY) - After buying climax ``` --- ## PRACTICE EXERCISES ### Exercise 1: Identify the Phase Look at any chart and ask: 1. Is there a trading range? (Phase B likely) 2. Did we just stop a trend? (Phase A) 3. Was there a spring/UTAD? (Phase C) 4. Is there a breakout? (Phase D) 5. Is trend running? (Phase E) ### Exercise 2: Volume Analysis For each bar, note: - Volume level (High/Normal/Low) - Spread (Wide/Normal/Narrow) - Effort vs Result (Matching? Diverging?) ### Exercise 3: Find Historical Springs Go back 6 months: - Mark all springs you can find - Note the setup before each - Track what happened after - Calculate win rate --- ## FINAL VISUALIZATION: The Complete Cycle ``` ACCUMULATION → MARKUP → DISTRIBUTION → MARKDOWN → ACCUMULATION... Distribution Accumulation (Top) (Bottom) ┌───────────────┐ ┌───────────────┐ │ BC UTAD │ │ Spring SC │ │ │ │ │ │ │ │ │ ────┴───┴───┴───────┴─╲ ╱────────┴───┴───┴──── ╲ ╱ Markdown ╲ ╱ Markup (Phase E) ╲ ╱ (Phase E) ╲ ╱ ╲ ╱ ╲ ╱ ╲ ╱ V The market cycles endlessly Your job: Identify where you are in the cycle Trade accordingly ``` --- **Remember:** - 📊 Study charts daily - 📝 Journal every setup - 🎯 Wait for the best signals - 💰 Follow smart money - ⏰ Be patient - 🚀 Let winners run **The indicator does the heavy lifting - you make the decisions!**
Indicador Pine Script®
por frankieho_92
Z-Score & StatsThis is an advanced indicator that measures price deviation from its mean using statistical z-scores, combined with multiple analytical features for trading signals. Core Functionality- Z-Score Calculation Engine: The indicator uses a custom standardization function that calculates how many standard deviations the current price is from its rolling mean. Unlike simple moving averages, this provides a normalized view of price extremes. The calculation maintains a sliding window of data points, efficiently updating mean and variance values as new data arrives while removing old data points. This approach handles missing values gracefully and uses sample variance (rather than population variance) for more accurate statistical measurements. Statistical Zones & Visual Framework: The indicator creates a visual representation of statistical probability zones: ±1 Standard Deviation: Encompasses about 68% of normal price behavior (green zone) ±2 Standard Deviations: Covers approximately 95% of price movements (orange zone) ±3 Standard Deviations: Represents 99.7% probability range (red zone) ±3.5 and ±4 Thresholds: Extreme outlier levels that trigger special alerts The z-score line changes color dynamically based on which zone it occupies, making it easy to identify the current market extremity at a glance. Advanced Features: Volume Contraction Analysis The script monitors volume patterns to identify periods of reduced trading activity. It compares current volume against a moving average and flags when volume drops below a specified threshold (default 70%). Volume contraction often precedes significant price moves and is factored into the optimal entry detection system. Momentum-Based Direction Model: Rather than just showing current z-score levels, the indicator projects where the z-score is likely to move based on recent momentum. It calculates the rate of change in the z-score and extrapolates forward for a specified number of bars. This creates a directional arrow that indicates whether conditions are bullish (negative z-score with upward momentum) or bearish (positive z-score with downward momentum). Divergence Detection System: The script automatically identifies four types of divergences between price action and z-score behavior :- Regular Bullish Divergence: Price makes lower lows while z-score makes higher lows, suggesting weakening downward pressure Regular Bearish Divergence: Price makes higher highs while z-score makes lower highs, indicating exhaustion in the uptrend Hidden Bullish Divergence: Price makes higher lows while z-score makes lower lows, confirming trend continuation in an uptrend Hidden Bearish Divergence: Price makes lower highs while z-score makes higher highs, confirming downtrend continuation The system uses pivot detection with configurable lookback periods and distance requirements, then draws connecting lines and labels directly on the chart when divergences occur. Yearly Statistics Tracking: The indicator maintains historical records of maximum z-score deviations over yearly periods (configurable bar count). This provides context by showing whether current extremes are unusual compared to typical annual ranges. The average yearly maximum helps traders understand if the current market is exhibiting normal volatility or exceptional conditions. Mean Reversion Probability: Based on the current z-score magnitude, the indicator calculates and displays the statistical probability that price will revert toward the mean. Higher absolute z-scores indicate stronger mean reversion probabilities, ranging from 38% at ±0.5 standard deviations to 99.7% at ±3 standard deviations. Comprehensive Statistics Table: A customizable on-chart table displays real-time statistics including: Current z-score value with directional indicator Predicted z-score based on momentum Current year's maximum absolute z-score Historical average yearly maximum Mean reversion probability percentage Zone status classification (Normal, Moderate, High, Extreme) Directional bias (Bullish, Bearish, Neutral) Active divergence status Volume contraction status with ratio Optimal setup detection (combining extreme z-scores with volume contraction) Optimal Entry Setup Detection: The most sophisticated feature identifies high-probability trading setups by combining multiple factors. An "Optimal Long" signal triggers when z-score reaches -3.5 or below AND volume is contracted. An "Optimal Short" signal appears when z-score exceeds +3.5 AND volume is contracted. This combination suggests extreme price deviation occurring on low volume, often preceding strong reversals. Alert System: The script includes a unified alert mechanism that triggers when z-score crosses specific thresholds: Crossing above/below ±3.5 standard deviations (extreme levels) Crossing above/below ±4 standard deviations (critical levels) Alerts fire once per bar with confirmation (previous bar must be on opposite side of threshold) to avoid false signals. Practical Application: This indicator is designed for mean reversion traders who seek statistically significant price extremes. The combination of z-score measurement, volume analysis, momentum projection, and divergence detection creates a multi-layered confirmation system. Traders can use extreme z-scores as potential reversal zones, while the direction model and divergence signals help time entries more precisely. The volume contraction filter adds an additional layer of confluence, identifying moments when reduced participation may precede explosive moves back toward the mean. Chart Attached: NSE GMR Airports, EoD 12/12/25 DISCLAIMER: This information is provided for educational purposes only and should not be considered financial, investment, or trading advice.Happy Trading
Indicador Pine Script®
por kingshukghosh71
3
VX-Time Quadrant Overlay (Quarterly Cycles) by Ikaru-s-The Time Quadrant Overlay is a purely time-based visualization tool designed to structure market time into repeating quarterly cycles across multiple timeframes. It does not generate trade signals, entries, or bias. Its sole purpose is to provide time context, so price action can be interpreted within a clear cyclical framework. What this indicator does The indicator divides time into four repeating quarters (Q1–Q4) and displays them simultaneously across different time horizons, such as: Weekly Daily (6-hour quarters) 90-minute cycles Micro cycles (within 90-minute structure) Each row represents a different time cycle, allowing traders to see time alignment, transitions, and overlaps at a glance. Quarter Structure Each cycle follows the same repeating sequence: Q1 – Early phase Q2 – Expansion / “True Open” phase Q3 – Continuation Q4 – Late phase / Transition The quarters are visualized using color-coded boxes, making it easy to see: where the market currently is in time when a new quarter begins when multiple cycles align or diverge Quarter Start Marker An optional Quarter Start Marker (vertical dashed line) can be enabled to highlight the start of a selected quarter (default: Q2). This is intended as a time reference, not a signal: useful for planning useful for contextualizing reactions to levels useful for session and cycle awareness How to use it (practical) This tool is best used to: provide time structure to existing analysis plan around upcoming time transitions contextualize reactions to levels or areas understand where price is acting within a cycle It works well alongside: discretionary price action session-based trading futures and index markets any methodology that respects time as a variable Customization The indicator is fully customizable: Enable / disable individual cycles Adjust box transparency and history depth Toggle labels and pane labels Enable / disable quarter start markers Select which quarter to highlight This allows the tool to remain clean on higher timeframes and detailed on lower ones. Important Notes This is a visual framework, not a strategy. No claims of predictive power are made. Time structure does not replace risk management or execution logic. The indicator is designed to adapt across markets, but interpretation remains discretionary. Final Thoughts Time is often treated as secondary to price. This tool exists to make time visible, structured, and easy to work with — nothing more, nothing less.
Indicador Pine Script®
por Ikaru-s-
FVG pointsFVGs ( fair value gaps) are imbalances that indicate displacement and are useful for reversal strategies that require displacement after a liquidity sweep This indicator shows the size of the gap in points/dollars which can help determine momentum and strength in reversals, as does a failure or inversion (iFVG) of these gap if they fail to act as support or resistance to price. As stops are often placed on the other side of a fair value gap from entry, the indicator helps give traders an idea of stop loss size for calculating position size. Fvg gaps below a certain points size can be considered to be weaker, larger gaps show stronger momentum. The indicator allows a minimum point size to be set so that FVGs below this minimum value will be shown without a points value. Points value is also shown for inverted FVGs (iFVGs) by a change in colour and length of box. By default, multiple gaps are combined together and the point value of the gap is shown, this can be toggled off in the settings to show the values of the individual gaps. Settings: Lookback - how many candles to look for FVGs and iFVGs Change length of the FVG box Change settings to decide the minimum size of gap to label colours of boxes and labels Option to show individual gaps or combined gaps
Indicador Pine Script®
por kijunkun
Liquidity Buy SignalLiquidity Buy Signal is an indicator designed to detect BUY entries based on liquidity (swing lows) combined with a bullish reversal candle pattern. It automatically marks recent swing-low zones/levels, tracks the transition from solid → dashed when a level gets broken, and then confirms a signal when price sweeps/cuts the correct level and a bullish candle pattern appears. OANDA:EURUSD BUY signal (green triangle) triggers when: A bullish reversal candle pattern (based on a set of rules) is detected, and The Liquidity chain conditions are satisfied using the most recent swing lows: Price crosses the level with the lower wick, or The level is within the lower 30% range of the previous candle (n-1), and The level does not pass through the bodies of older candles (filtered by lookback). Key settings: Pivot Lookback: controls swing-low detection sensitivity. Swing Area: Wick Extremity / Full Range for zone definition. Filter lookback older bodies: filters out levels that intersect older candle bodies (skips n-2). Style: toggle Swing Low display + zone/line colors. Alerts: Includes a built-in alertcondition for BUY signals (useful for notifications/webhooks). This indicator is especially well-suited for identifying potential bottoms in a downtrend. Note: This tool provides trading signals and should be combined with context (trend/HTF/volume/risk management) before entering trades. Not financial advice.
Indicador Pine Script®
por StrategyLAB_
1
Buy-Dip / Sell-Pullback Buy the Dip / Sell the Pullback – Trend-Following Strategy (EOD → Next Day Execution) Overview This is a trend-following futures strategy designed to participate in pullbacks within established trends, not to predict reversals. It works on End-of-Day (EOD) confirmation and executes trades on the next trading session, making it suitable for positional and swing traders. The strategy combines momentum, trend direction, volatility, and price location to filter for high-quality setups while avoiding overtrading. 🔍 Core Philosophy Trade only in the direction of the prevailing trend Buy dips in uptrends Sell pullbacks in downtrends Avoid chasing price after extended gaps Use volatility-adjusted risk management (ATR-based SL & targets) 📊 Indicators Used RSI (20) Measures underlying momentum strength Stochastic Oscillator (55, 34, 21) Confirms pullback exhaustion within a trend Supertrend (10, 2) Defines primary trend direction Bollinger Bands (20, 2) Provides structural trend bias ATR (5) Used for: Entry gap filter Stop-loss Profit target Supertrend buffer ✅ Long (Buy) Setup – Evaluated at EOD A long setup is generated when all of the following conditions are satisfied at the close of the trading day: RSI(20) is above the bullish threshold (default: 48) Stochastic %K is above %D (confirming pullback momentum) Supertrend direction is bullish Price is near or above Supertrend, allowing a volatility-adjusted buffer (ATR-based) Price is above the Bollinger Band middle line This combination ensures: The market is trending up Momentum supports continuation The pullback is controlled, not a breakdown ❌ Short (Sell) Setup – Evaluated at EOD A short setup is generated when: RSI(20) is below the bearish threshold (default: 52) Stochastic %K is below %D Supertrend direction is bearish Price is near or below Supertrend, with an ATR buffer Price is below the Bollinger Band middle line This filters for pullbacks within sustained downtrends. ⏰ Trade Execution Logic (Next Day Rule) Once a setup is confirmed at EOD, a trade is attempted on the next trading session To avoid chasing gaps: Long trades are allowed only if price does not move more than a defined multiple of the previous day’s True Range Short trades follow the same logic in reverse This is implemented via limit orders, ensuring realistic backtesting and execution behavior 🛑 Risk Management All exits are volatility-adjusted using ATR: Stop-Loss: 1.1 × ATR(5) from entry price Target: 2.2 × ATR(5) from entry price This results in a risk–reward ratio of approximately 1:2 ATR is frozen at entry to avoid forward-looking bias. 🧠 Why This Strategy Works Avoids low-quality trades during consolidation Participates only when trend + momentum align Prevents emotional gap-chasing Adapts automatically to changing volatility Suitable for index futures and liquid stocks 📌 Recommended Usage Timeframe: Daily Instruments: Index Futures (e.g. NIFTY, BANKNIFTY) Highly liquid stocks Market Type: Trending markets Not ideal for: Sideways or low-volatility environments ⚙️ Customization Tips You can control trade frequency and aggressiveness by adjusting: RSI thresholds Supertrend buffer (ATR multiple) Gap filter multiplier Stochastic edge parameter Looser settings → more trades Stricter settings → higher selectivity ⚠️ Disclaimer This strategy is for educational and research purposes only. Backtest results do not guarantee future performance. Always validate with paper trading before deploying real capital.
Estratégia Pine Script®
por Praveenmishrainvestments
Volatility Targeting: Single Asset [BackQuant]Volatility Targeting: Single Asset An educational example that demonstrates how volatility targeting can scale exposure up or down on one symbol, then applies a simple EMA cross for long or short direction and a higher timeframe style regime filter to gate risk. It builds a synthetic equity curve and compares it to buy and hold and a benchmark. Important disclaimer This script is a concept and education example only . It is not a complete trading system and it is not meant for live execution. It does not model many real world constraints, and its equity curve is only a simplified simulation. If you want to trade any idea like this, you need a proper strategy() implementation, realistic execution assumptions, and robust backtesting with out of sample validation. Single asset vs the full portfolio concept This indicator is the single asset, long short version of the broader volatility targeted momentum portfolio concept. The original multi asset concept and full portfolio implementation is here: That portfolio script is about allocating across multiple assets with a portfolio view. This script is intentionally simpler and focuses on one symbol so you can clearly see how volatility targeting behaves, how the scaling interacts with trend direction, and what an equity curve comparison looks like. What this indicator is trying to demonstrate Volatility targeting is a risk scaling framework. The core idea is simple: If realized volatility is low relative to a target, you can scale position size up so the strategy behaves like it has a stable risk budget. If realized volatility is high relative to a target, you scale down to avoid getting blown around by the market. Instead of always being 1x long or 1x short, exposure becomes dynamic. This is often used in risk parity style systems, trend following overlays, and volatility controlled products. This script combines that risk scaling with a simple trend direction model: Fast and slow EMA cross determines whether the strategy is long or short. A second, longer EMA cross acts as a regime filter that decides whether the system is ACTIVE or effectively in CASH. An equity curve is built from the scaled returns so you can visualize how the framework behaves across regimes. How the logic works step by step 1) Returns and simple momentum The script uses log returns for the base return stream: ret = log(price / price ) It also computes a simple momentum value: mom = price / price - 1 In this version, momentum is mainly informational since the directional signal is the EMA cross. The lookback input is shared with volatility estimation to keep the concept compact. 2) Realized volatility estimation Realized volatility is estimated as the standard deviation of returns over the lookback window, then annualized: vol = stdev(ret, lookback) * sqrt(tradingdays) The Trading Days/Year input controls annualization: 252 is typical for traditional markets. 365 is typical for crypto since it trades daily. 3) Volatility targeting multiplier Once realized vol is estimated, the script computes a scaling factor that tries to push realized volatility toward the target: volMult = targetVol / vol This is then clamped into a reasonable range: Minimum 0.1 so exposure never goes to zero just because vol spikes. Maximum 5.0 so exposure is not allowed to lever infinitely during ultra low volatility periods. This clamp is one of the most important “sanity rails” in any volatility targeted system. Without it, very low volatility regimes can create unrealistic leverage. 4) Scaled return stream The per bar return used for the equity curve is the raw return multiplied by the volatility multiplier: sr = ret * volMult Think of this as the return you would have earned if you scaled exposure to match the volatility budget. 5) Long short direction via EMA cross Direction is determined by a fast and slow EMA cross on price: If fast EMA is above slow EMA, direction is long. If fast EMA is below slow EMA, direction is short. This produces dir as either +1 or -1. The scaled return stream is then signed by direction: avgRet = dir * sr So the strategy return is volatility targeted and directionally flipped depending on trend. 6) Regime filter: ACTIVE vs CASH A second EMA pair acts as a top level regime filter: If fast regime EMA is above slow regime EMA, the system is ACTIVE. If fast regime EMA is below slow regime EMA, the system is considered CASH, meaning it does not compound equity. This is designed to reduce participation in long bear phases or low quality environments, depending on how you set the regime lengths. By default it is a classic 50 and 200 EMA cross structure. Important detail, the script applies regime_filter when compounding equity, meaning it uses the prior bar regime state to avoid ambiguous same bar updates. 7) Equity curve construction The script builds a synthetic equity curve starting from Initial Capital after Start Date . Each bar: If regime was ACTIVE on the previous bar, equity compounds by (1 + netRet). If regime was CASH, equity stays flat. Fees are modeled very simply as a per bar penalty on returns: netRet = avgRet - (fee_rate * avgRet) This is not realistic execution modeling, it is just a simple turnover penalty knob to show how friction can reduce compounded performance. Real backtesting should model trade based costs, spreads, funding, and slippage. Benchmark and buy and hold comparison The script pulls a benchmark symbol via request.security and builds a buy and hold equity curve starting from the same date and initial capital. The buy and hold curve is based on benchmark price appreciation, not the strategy’s asset price, so you can compare: Strategy equity on the chart symbol. Buy and hold equity for the selected benchmark instrument. By default the benchmark is TVC:SPX, but you can set it to anything, for crypto you might set it to BTC, or a sector index, or a dominance proxy depending on your study. What it plots If enabled, the indicator plots: Strategy Equity as a line, colored by recent direction of equity change, using Positive Equity Color and Negative Equity Color . Buy and Hold Equity for the chosen benchmark as a line. Optional labels that tag each curve on the right side of the chart. This makes it easy to visually see when volatility targeting and regime gating change the shape of the equity curve relative to a simple passive hold. Metrics table explained If Show Metrics Table is enabled, a table is built and populated with common performance statistics based on the simulated daily returns of the strategy equity curve after the start date. These include: Net Profit (%) total return relative to initial capital. Max DD (%) maximum drawdown computed from equity peaks, stored over time. Win Rate percent of positive return bars. Annual Mean Returns (% p/y) mean daily return annualized. Annual Stdev Returns (% p/y) volatility of daily returns annualized. Variance of annualized returns. Sortino Ratio annualized return divided by downside deviation, using negative return stdev. Sharpe Ratio risk adjusted return using the risk free rate input. Omega Ratio positive return sum divided by negative return sum. Gain to Pain total return sum divided by absolute loss sum. CAGR (% p/y) compounded annual growth rate based on time since start date. Portfolio Alpha (% p/y) alpha versus benchmark using beta and the benchmark mean. Portfolio Beta covariance of strategy returns with benchmark returns divided by benchmark variance. Skewness of Returns actually the script computes a conditional value based on the lower 5 percent tail of returns, so it behaves more like a simple CVaR style tail loss estimate than classic skewness. Important note, these are calculated from the synthetic equity stream in an indicator context. They are useful for concept exploration, but they are not a substitute for professional backtesting where trade timing, fills, funding, and leverage constraints are accurately represented. How to interpret the system conceptually Vol targeting effect When volatility rises, volMult falls, so the strategy de risks and the equity curve typically becomes smoother. When volatility compresses, volMult rises, so the system takes more exposure and tries to maintain a stable risk budget. This is why volatility targeting is often used as a “risk equalizer”, it can reduce the “biggest drawdowns happen only because vol expanded” problem, at the cost of potentially under participating in explosive upside if volatility rises during a trend. Long short directional effect Because direction is an EMA cross: In strong trends, the direction stays stable and the scaled return stream compounds in that trend direction. In choppy ranges, the EMA cross can flip and create whipsaws, which is where fees and regime filtering matter most. Regime filter effect The 50 and 200 style filter tries to: Keep the system active in sustained up regimes. Reduce exposure during long down regimes or extended weakness. It will always be late at turning points, by design. It is a slow filter meant to reduce deep participation, not to catch bottoms. Common applications This script is mainly for understanding and research, but conceptually, volatility targeting overlays are used for: Risk budgeting normalize risk so your exposure is not accidentally huge in high vol regimes. System comparison see how a simple trend model behaves with and without vol scaling. Parameter exploration test how target volatility, lookback length, and regime lengths change the shape of equity and drawdowns. Framework building as a reference blueprint before implementing a proper strategy() version with trade based execution logic. Tuning guidance Lookback lower values react faster to vol shifts but can create unstable scaling, higher values smooth scaling but react slower to regime changes. Target volatility higher targets increase exposure and drawdown potential, lower targets reduce exposure and usually lower drawdowns, but can under perform in strong trends. Signal EMAs tighter EMAs increase trade frequency, wider EMAs reduce churn but react slower. Regime EMAs slower regime filters reduce false toggles but will miss early trend transitions. Fees if you crank this up you will see how sensitive higher turnover parameter sets are to friction. Final note This is a compact educational demonstration of a volatility targeted, long short single asset framework with a regime gate and a synthetic equity curve. If you want a production ready implementation, the correct next step is to convert this concept into a strategy() script, add realistic execution and cost modeling, test across multiple timeframes and market regimes, and validate out of sample before making any decision based on the results.
Indicador Pine Script®
por BackQuant
2
Auto Trend [theUltimator5]The Auto Trend indicator was designed to be a unique pattern detection indicator without the use of standard pivot point logic or high/low lines. It is a study in pattern detection by using iterative best-fit logic. The indicator automatically identifies and draws trend channels by analyzing price action across configurable lookback periods. It finds optimal high and low trendlines that contain price movement, with a middle line marking the trend's center. Key Features: Automatic Pattern Detection - Intelligently searches for the best lookback period where price stays within the channel boundaries Dual Pattern Modes - Choose between Short (20-66 bars) for quick patterns or Long (50-500 bars) for extended trends. Note - the long pattern is fully configurable and can be set anywhere up to 5000 bars. Smart Caching - Optimized performance that only recalculates when necessary Customizable Starting Point - Click directly on the chart to set where the trend channel begins Flexible Lookback Range - Set minimum and maximum lookback periods to match your trading style Visual Debugging - Optional label displays the active lookback period and violation count How It Works: The indicator divides the lookback period into thirds, finds the highest and lowest closes in the first and last thirds, then draws trendlines connecting these points. It can automatically search through different lookback periods to find the one with the fewest price violations (closes outside the channel). Settings: Use Auto Lookback - Enable automatic optimal lookback detection Pattern Length - Short (faster, 1-bar increments) or Long (broader, 5-bar increments) Min/Max Lookback - Define the search range for the Long pattern Manual Lookback - Override auto-detection with a fixed period Custom Colors - Personalize the high, low, and middle line colors Starting Point - Select where the trend analysis begins Use Cases: Identify dominant trend channels across different timeframes Spot potential support and resistance levels Determine trend strength and consistency Time entries and exits based on channel position The indicator supports up to 5000 bars of historical data for comprehensive trend analysis.
Indicador Pine Script®
por TheUltimator5
3
Session Levels (Daily & Weekly Targets)This indicator provides market structure and contextual reference only. It does not generate trade signals, entries, or trading advice. Plots rolling previous daily and weekly highs/lows as potential target levels. Levels automatically remove once touched (including wicks). Default visibility is NY session with optional toggles for London and Asia. Designed for intraday structure, confluence, and target identification.
Indicador Pine Script®
por JayGED
GVWAP_Core (CalendarSpan + EventSpike)GVWAP Core Indicator General Description (Public) GVWAP (Generalized Volume-Weighted Average Price) is an advanced anchoring and averaging framework designed to reveal market structure rather than predict price. Unlike traditional VWAP, GVWAP is not limited to volume weighting or session-based anchoring. It can operate on any input series (price, indicators, transforms) and supports multiple weighting schemes, decay behavior, and structural reset logic. At its core, GVWAP answers a simple question: “Where is the statistically relevant center of activity since the last meaningful structural event?” The indicator continuously updates a weighted average of the input series, gradually forgetting older data using exponential decay. The anchor point can reset on calendar boundaries (day, week, month, etc.) or on statistically significant events such as abnormal volume spikes. Robust dispersion bands based on mean absolute deviation (MAD) surround the average, providing context for trend, rotation, and compression regimes. GVWAP is not a trading signal by itself. It is best used as a structural reference layer or as an intermediate transform feeding other indicators, strategies, or regime filters. Mathematical Description (Quantitative) Let x_t be an arbitrary input series and w_t a selectable weight function. GVWAP is defined as a normalized exponentially decayed weighted estimator: GVWAP_t = N_t / D_t with recursive updates: N_t = (1 − α)·N_{t−1} + α·w_t·x_t D_t = (1 − α)·D_{t−1} + α·w_t where α = 1 − 2^(−1/H) and H is the decay half-life in bars. Weights may be defined as: • w_t = V_t (volume) • w_t = 1 (equal weight) • w_t = 1 / ATR_t (volatility-normalized) • w_t = f(n_t) (time-weighted, where n_t is bars since reset) The estimator resets when a structural condition R_t is satisfied, at which point: N_t = w_t·x_t, D_t = w_t For event-based anchoring, volume surprise is computed using a Student‑t–compressed z‑score: z_t = (V_t − μ_V) / σ_V tZ_t = z_t / sqrt(1 + z_t² / ν) A reset occurs when tZ_t exceeds a threshold τ. Dispersion is measured via a decayed Mean Absolute Deviation: MAD_t = (Σ λ^{t−i} w_i |x_i − GVWAP_t|) / (Σ λ^{t−i} w_i) Bands are defined as GVWAP_t ± k·MAD_t. GVWAP therefore represents a bounded-memory, robust, non‑Gaussian estimator of the local conditional expectation of x_t under dynamic anchoring and weighting.
Indicador Pine Script®
por AJSwogger
VX-Session-Boxes-(AM/PM Split)(Customizable) by Ikaru-s-VX-Session-Boxes-(AM/PM Split) is a session-based visualization tool for TradingView that highlights major market sessions directly on the chart using dotted range boxes and an optional AM/PM split. The indicator allows traders to visually separate market behavior across different sessions while keeping the chart clean and readable. 🔹 Key Features Custom Session Definitions Define up to 4 independent sessions using TradingView’s session format (HHMM-HHMM + weekdays). Timezone-Aware All sessions are calculated using a user-defined timezone (IANA or UTC offset), ensuring accurate session alignment across markets. Dotted Session Boxes Each session is drawn as a dotted box based on the session’s high/low range, providing a clear view of volatility and price structure. AM / PM Split Visualization Sessions can be visually split into AM and PM parts: Separate box shading for AM and PM Optional dotted vertical split line at the AM → PM transition (12:00 in the selected timezone) Session Labels Optional labels at the start of each session for quick identification (e.g. Sydney, Tokyo, London, New York). Fully Customizable Visuals Adjustable opacity, border width, and visibility toggles for boxes, split lines, and labels. 🔹 Use Cases Session-based market analysis (Asia / London / New York) Identifying session ranges and volatility expansion Observing price behavior differences between AM and PM Studying session transitions and liquidity shifts 🔹 Notes Session boxes are based on session high and low, not full chart height. AM/PM split is based on 12:00 (noon) in the selected timezone. Designed for clarity and performance on intraday timeframes. 🔹 Compatibility Pine Script® v6 Works on all intraday timeframes Overlay indicator (draws directly on the price chart)
Indicador Pine Script®
por Ikaru-s-
Pops Dividend 7-Day RadarHow traders use it as a strategy anyway 🧠 In real life, this becomes a manual or semi-systematic strategy: Strategy logic (human-driven): Scan for highest yield stocks Filter for ex-date within 7 days Apply technical rules (trend, EMAs, support) Enter before ex-date Exit: Before ex-date (momentum run-up) On ex-date Or after dividend (reversion play) Indicator’s role: “Tell me when a stock qualifies so I can decide how to trade it.” That’s exactly what this tool does. How we could turn this into a strategy-style framework Even though Pine won’t let us backtest dividends properly, we can: Build a rules-based checklist (entry/exit rules) Create alerts that behave like strategy triggers Combine with: EMA trend filters Volume conditions ATR-based exits Label it as: “Pops Dividend Capture Playbook” (manual execution) This keeps it honest, legal, and reliable. Bottom line 🧩 Indicator = what we built 📘 Strategy = how you trade it using the indicator ⚠️ TradingView limitations prevent a true dividend strategy backtest
Indicador Pine Script®
por PopsStock
Neosha Concept V4 (NY Time) Imagine the financial market as a huge ocean. Millions of traders throw orders into it every second. But beneath all the noise, there is a powerful current that quietly controls where the waves move. That current is not a person, not a trader, and not random—it is an algorithm. This algorithm is called the Interbank Price Delivery Algorithm (IPDA). Think of it as the “navigation system” that guides price through the market. IPDA has one job: to move prices in a way that keeps the market efficient and liquid. To do this, it constantly looks for two things: 1. Where liquidity is hiding Liquidity is usually found above highs and below lows—where traders place stop losses. The algorithm moves price there first to collect that liquidity. 2. Where price became unbalanced Sometimes price moves too fast and creates gaps or imbalances. IPDA returns to those areas later to “fix” the missing orders. Once you start looking at the charts with this idea in mind, everything makes more sense: Why price suddenly spikes above a high and crashes down Why big moves leave gaps that price later fills Why the market reverses right after taking stops Why trends begin only after certain levels are hit These are not accidents. They are the algorithm doing its job. Price moves in a repeating cycle: Gather liquidity Make a strong move (displacement) Return to fix inefficiency Deliver to the next target Most beginners only see the candles. But once you understand IPDA, you see the intention behind the candles. Instead of guessing where price might go, you begin to understand why it moves there. And once you understand the “why,” your trading becomes clearer, calmer, and far more accurate.
Indicador Pine Script®
por jasiremail
2
MACD X SignalsThis is a fundamental signal indicator based on MACD crossovers. It enhances the standard MACD by adding visual labels that classify signals based on their location relative to the Zero Line. This helps identify whether a trend is reversing, continuing, or potentially overextended. Signal Legend: B (Reversal): Bullish crossover in the Negative Zone . B+ (Neutral): Bullish crossover in the Middle Zone . B- (Trend): Bullish crossover in the Positive Zone S : MACD crossing down (Bearish signal).
Indicador Pine Script®
por aneeshkaav
Trendlines & SR ZonesIt's a comprehensive indicator (Pine Script v6) that represents two powerful technical analysis tools: automatic trendline detection based on pivot points and volume delta analysis with support/resistance zone identification. This overlay indicator helps traders identify potential trend directions and key price levels where significant buying or selling pressure has occurred. Features: = 1. Price Trendlines The indicator automatically identifies and draws trendlines based on pivot points, creating dynamic support and resistance levels. Key Components: Pivot Detection: Uses configurable left and right bars to identify significant pivot highs and lows Trendline Filtering: Only draws downward-sloping resistance trendlines and upward-sloping support trendlines Zone Creation: Creates filled zones around trendlines based on average price volatility Automatic Management: Maintains only the 3 most recent significant trendlines to avoid chart clutter Customization Options: Left/Right Bars for Pivot: Adjust sensitivity of pivot detection (default: 10 bars each side) Extension Length: Control how far trendlines extend past the second pivot (default: 50 bars) Average Body Periods: Set the lookback period for volatility calculation (default: 100) Tolerance Multiplier: Adjust the width of the trendline zones (default: 1.0) Color Customization: Separate colors for high (resistance) and low (support) trendlines and their fills 2. Volume Delta % Bars The indicator analyzes volume distribution across price levels to identify significant supply and demand zones. Key Components: Volume Profile Analysis: Divides the price range into rows and calculates volume delta at each level Delta Visualization: Displays horizontal bars showing the percentage difference between buying and selling volume Zone Identification: Automatically identifies the most significant supply and demand zones Visual Integration: Connects volume delta bars with corresponding support/resistance zones on the price chart Customization Options: Lookback Period: Set the number of bars to analyze for volume (default: 200) Price Rows: Control the granularity of the volume analysis (default: 50 rows) Delta Sections: Adjust the number of horizontal delta bars displayed (default: 20) Panel Appearance: Customize width, position, and direction of the delta panel Zone Settings: Control the number of supply/demand zones and their extension (default: 3 zones) How It Works- Trendline Logic: The script continuously scans for pivot highs and lows based on the specified left and right bars When a pivot is detected, it creates a horizontal line at that price level The script then looks for the previous pivot of the same type (high or low) It connects these pivots with a trendline, extending it based on the user-specified setting A parallel line is created to form a zone, with the distance based on average price volatility The script filters out invalid trendlines (upward-sloping resistance and downward-sloping support). Only the 3 most recent trendlines are maintained to prevent chart clutter Volume Delta Logic: The script divides the price range over the lookback period into the specified number of rows For each bar in the lookback period, it categorizes volume as bullish (close > open) or bearish (close < open). This volume is assigned to the appropriate price level based on the HLC3 price. The price levels are grouped into sections, and the net delta (bullish - bearish volume) is calculated for each Horizontal bars are drawn to represent these delta percentages. The most significant positive and negative deltas are identified and displayed as support and resistance zones. These zones are extended to the left on the price chart and connected to the delta panel with dotted lines. Ideal Timeframes: The indicator is versatile and can be used across multiple timeframes, but it performs optimally on specific timeframes depending on your trading style: For Day Trading: Optimal Timeframes: 15-minute to 1-hour charts Why: These timeframes provide a good balance between noise reduction and sufficient volume data. The volume delta analysis is particularly effective on these timeframes as it captures intraday accumulation/distribution patterns while the trendlines remain reliable enough for intraday trading decisions. For Swing Trading: Optimal Timeframes: 1-hour to 4-hour charts Why: These timeframes offer the best combination of reliable trendline formation and meaningful volume analysis. The trendlines on these timeframes are less prone to whipsaws, while the volume delta analysis captures multi-day trading sessions and institutional activity. For Position Trading: Optimal Timeframes: Daily and weekly charts Why: On these higher timeframes, trendlines become extremely reliable as they represent significant market structure points. The volume delta analysis reveals longer-term accumulation and distribution patterns that can define major support and resistance zones for weeks or months. Timeframe-Specific Adjustments: Lower Timeframes (1-15 minutes): Reduce left/right bars for pivots (5-8 bars) Decrease lookback period for volume delta (50-100 bars) Increase tolerance multiplier (1.2-1.5) to account for higher volatility Higher Timeframes (Daily+): Increase left/right bars for pivots (15-20 bars) Extend lookback period for volume delta (300-500 bars) Consider increasing the number of price rows (70-100) for more detailed volume analysis Usage Guidelines- For Trendline Analysis: Use the trendlines as dynamic support and resistance levels Price reactions at these levels can indicate potential trend continuation or reversal points The filled zones around trendlines represent areas of price volatility or uncertainty Consider the slope of the trendline as an indication of trend strength For Volume Delta Analysis: The horizontal delta bars show where buying or selling pressure has been concentrated Green bars indicate areas where buying volume exceeded selling volume (demand) Red bars indicate areas where selling volume exceeded buying volume (supply) The highlighted supply and demand zones on the price chart represent significant price levels These zones can act as future support or resistance areas as price revisits them Customization Tips: Trendline Sensitivity: Decrease left/right bars values to detect more pivots (more sensitive) or increase them for fewer, more significant pivots Zone Width: Adjust the tolerance multiplier to make trendline zones wider or narrower based on your trading style Volume Analysis: Increase the lookback period for a longer-term volume profile or decrease it for more recent activity Visual Clarity: Adjust colors and transparency settings to match your chart theme and preferences Conclusion: This indicator provides traders with a comprehensive view of both trend dynamics and volume-based support/resistance levels. With these two analytical approaches, the indicator offers valuable insights for identifying potential entry and exit points, trend strength, and key price levels where significant market activity has occurred. The extensive customization options allow traders to adapt the indicator to various trading styles and timeframes, with optimal performance on 15-minute to daily charts depending on their trading horizon. Chart Attached: NSE HINDZINC, EoD 12/12/25 DISCLAIMER: This information is provided for educational purposes only and should not be considered financial, investment, or trading advice. Please do boost if you like it. Happy Trading.
Indicador Pine Script®
por kingshukghosh71
10