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OPEN-SOURCE SCRIPT

Wyckoff Springs [QuantVue]

By QuantVue
The Wyckoff Springs indicator is designed to identify potential bullish reversal patterns known as "springs" in the Wyckoff Method. A Wyckoff spring occurs when the price temporarily dips below a support level, then quickly rebounds, suggesting a false breakdown and a
potential buying opportunity.

How it works:
Pivot detection:
  • The indicator identifies pivot lows based on the specified pivot length.
  • These pivot points are stored and analyzed for potential spring patterns.


Volume and Range Checks:
  • If volume confirmation is enabled, the indicator checks if the current volume exceeds a threshold based on the average volume over the specified period.
  • The indicator ensures that the price undercuts the defined trading range before confirming a spring pattern.


Spring Identification
  • The indicator checks for price conditions indicative of a Wyckoff spring: a temporary dip below a pivot low followed by a close above it. The recovery must take place within 3 bars.
  • If these conditions are met, a spring label is placed below the bar.


Features:
Pivot Length:
  • The user can set the pivot length to match any style of trading.


Volume Confirmation:
  • An optional feature where the user can specify if volume confirmation is required for a spring signal.
  • Volume threshold can be set to determine what constitutes significant volume compared to the average volume over a specified period. By default it is set to 1.5


How to Trade a Spring:

snapshot

snapshot

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We hope you enjoy.

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Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.

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