Auto Wyckoff Schematic [by DanielM]

26. Jan.

This indicator is designed to automatically detect essential components of Wyckoff schematics. This tool aims to capture the critical phases of liquidity transfer from weak to strong hands, occurring before a trend reversal. While the Wyckoff method is a comprehensive and a very nuanced approach, every Wyckoff schematic is unique, making it impractical to implement all its components without undermining the detection of the pattern. Consequently, this script focuses on the essential elements critical to identifying these schematics effectively.

Key Features:

Swing Detection Sensitivity:

The sensitivity of swing detection is adjustable through the input parameter. This parameter controls the number of past bars analyzed to determine swing highs and lows, allowing users to fine-tune detection based on market volatility and timeframes.

Pattern Detection Logic:

Accumulation Schematic:
Detects consecutive lower swing lows, representing phases like Selling Climax (SC) and Spring, which often precede a trend reversal upward. After the final low is identified, a higher high is detected to confirm the upward trend initiation.

Labeled Key Points:

• SC: Selling Climax, marking the beginning of the accumulation zone.
  
• ST: Secondary Test during the schematic.
  
• ST(b): Secondary Test in phase B.
  
• Spring: The lowest point in the schematic, signaling a final liquidity grab.
  
• SOS: Sign of Strength, confirming a bullish breakout.
  

The schematic is outlined visually with a rectangle to highlight the price range.


Distribution Schematic:

Detects consecutive higher swing highs, which indicate phases such as Buying Climax (BC) and UTAD, often leading to a bearish reversal. After the final high, a lower low is detected to confirm the downward trend initiation.

Labeled Key Points:

• BC: Buying Climax, marking the beginning of the distribution zone.
  
• ST: Secondary Test during the schematic.
  
• UT: Upthrust.
  
• UTAD: Upthrust After Distribution, signaling the final upward liquidity grab before a bearish trend.
  
• SOW: Sign of Weakness, confirming a bearish breakout.
  

The schematic is visually outlined with a rectangle to highlight the price range.

Notes:

• Simplification for Practicality: Due to the inherent complexity and variability of Wyckoff schematics, the indicator focuses only on the most essential features—liquidity transfer and key reversal signals.
  
• Limitations: The tool does not account for all components of Wyckoff's method (e.g., minor phases or nuanced volume analysis) to maintain clarity and usability.
  
• Unique Behavior: Every Wyckoff schematic is different, and this tool is designed to provide a simplified, generalized approach to detecting these unique patterns.
  

26. Jan.

Versionshinweise

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