Wyckoff Springs [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:
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Wyckoffaccumulation
Consolidation Range Tracker[Trendoscope]🎲 Introducing Consolidation Range Tracker: Visualising Price Consolidation after Impulsive Moves
ConsolidationRangeTracker is an innovative indicator designed to assist traders in identifying and tracking price consolidation zones following impulsive market moves. This indicator is built on Auto Motive Wave indicator and Interactive Motive Wave indicator. This is also an attempt to plot Wyckoff Distribution pattern. But, instead of implying the price movement after consolidation, we are just leaving it to the interpretation of the users.
🎲 Process
Find impulse wave using the methods defined in Auto Motive Wave indicator and Interactive Motive Wave indicator
Define the range of consolidation based on predefined ratio (available as input settings)
Track the price movement within range along with number of bars and cumulative volume.
When price breaks out of the range, check if price ranged long enough to consider it as consolidation.
Retain the drawings and visualisation if the consolidation is confirmed before the breakout. Or else, remove them from the chart to keep it clean.
Overall output can be visualised as
Note : Patterns will not be there on the chart every time. It is normal for indicator not to show any drawings or patterns on the chart.
🎲 Stages of the Indicator
🎯 When an Impulse is formed
When an impulse wave is detected, wave is drawn on the chart along with details such as number of bars and volume spawning the impulse wave and the calculated range based on the input value. An alert of new impulse is also triggered if configured for alerts.
🎯 When an Impulse is updated
When price extends further without consolidating, the impulse wave is also updated to consider the latest values. This repaint is expected and as designed. We will also trigger an alert related to update of an impulse wave.
🎯 Update of range as and when it happens
Range is not bound and it keeps moving based on the highest and lowest price. Value of range is constant and it is calculated based on certain ratio of impulse as configured in settings. But, this range can move up and down based on which direction the price moves.
For example, this is the initial range when the impulse wave is formed.
But, after certain bars, we can see that the range shift slightly up because, price has more upward movement than downward.
No alerts are triggered during this phase.
🎯 Confirmed consolidation
Consolidation range is confirmed after price range through certain bars with respect to number of bars involved in the impulse wave. The default setting of 1 for range bar ratio means that range is confirmed when price ranges for same number of bars as that of impulse.
An alert is triggered when consolidation range is confirmed.
🎯 Breakout
Breakout happen if the price exceeds the range bracket. Breakout may happen either before or after confirmation of consolidation. In either case, an alert is triggered.
Patterns are removed from the chart if the consolidation is not confirmed. In other words, the price did not stay in range for long time.
🎲 Settings
Simple settings to define the zigzag base and few pattern related configuration.
🎲 Alerts
Alerts are configured using alert function and are triggered in following scenarios.
A new impulse created
An impulse wave is updated
Consolidation range confirmed
Breakout with/without confirmed consolidation.
🎲 Use Cases
Indicator can be used for identifying few types of patterns on the chart. But, they may involve user's discretion. Major patterns that can be identified are:
🎯 Flag Formation Consolidation after an impulse can be termed as flag and is a sign of trend continuation after consolidation.
🎯 Wyckoff Distribution Long consolidation with high volume after an impulse can be a sign of wyckoff distribution formation. This pattern is trend reversal pattern.
Keltner Center Of Gravity Channel ( KeltCOG )I have the ambition to create a ‘landscape’ which enables the user to see the ‘mood’ of the market about the price of an instrument, simply by looking where the candles go. Prices are a simple phenomenon , they go up or down or stay the same. This is represented quite well for the short term by a candle. I recommend to study candle patterns. Prices not only fluctuate but also trend up, down or go sideways. The user should analyze this by determining the COG (Center Of Gravity) and the ‘normal’ current range by using the historical data in a lookback period.
As a COG the center line of a Donchian Channel is often used. I.m.o. a COG should be a zone, in this channel I use the gray zone of my Donchian Fibonacci Channel, The ‘normal’ range is a multiple of Average True Range, as used in a Keltner Channel. Combining the two can give a cumbersome result, as one can see in my Keltner Fibonacci Channel. In this KeltCOG channel I solved this by not using all Fibonacci levels and by making the Keltner lines strictly parallel to the nearest COG line. To do this, I use the fact that the COG lines have horizontal stretches, there I make the Keltner lines horizontal too. Only where the COG lines change value, the Keltner lines are recalculated. This way the channel gets a very regular shape with three clear zones.
Interpretation of a chart by using the KeltCOG channel.
Overbought: If the candles go higher then the blue zone, the market is hyper enthusiast, creating an overbought situation. This is often followed by a reversion to the COG.
Uptrend: If the candles form in the blue zone, the market is enthusiast and willing to pay more.
Hopeful: If the candles form in or near the upper uncolored zone, the market is hopeful and is thinking about paying more. Sometimes prices go a little up.
Content: If the candles form in the gray zone, which represents COG, the market is happy with the current prices, so these move sideways
Disappointed: If the candles form in or near the lower uncolored zone, the market is disappointed and contemplates paying less, sometimes prices go a little down.
Downtrend: If the candles form in red zone, the market doesn’t like the instrument at all, rejects the current price and is only prepared to pay less.
Oversold: If the candles form below the red zone, the market overdoes its disgust, creating an oversold situation, often followed by a reversion to the COG.
