Wyckoff Phases Oscillator
The "Wyckoff Phases Oscillator" is a script designed for the TradingView platform. It's an indicator that provides traders with an oscillator-based visual representation of the Wyckoff Market Cycle. The oscillator doesn't overlay the price chart but instead appears in a separate panel beneath it.
How it works:
The script operates based on two input parameters: length and timeFrame. The length parameter, set by default to 21, determines the period used for various calculations within the script. On the other hand, timeFrame, set by default to "1", specifies the timeframe for which the script will gather and analyze data.
The script requests security information such as closing prices (higherClose), volume (higherVolume), highest prices (higherHigh), and lowest prices (higherLow) from the ticker symbol (syminfo.tickerid) within the defined timeframe.
Two exponential moving averages (ema1 and ema2) are calculated based on the closing prices, with lengths of 5 and 9 respectively.
A Rate of Change (ROC) is calculated based on the closing prices and the defined length.
An average volume (avgVolume) is calculated using a simple moving average (SMA) based on the volume and the defined length.
The script defines conditions for institutional buying and selling.
Institutional buying is determined when the closing price is greater than the lowest price and the volume is greater than the average volume.
Institutional selling is determined when the closing price is less than the highest price and the volume is greater than the average volume.
The script also defines conditions for the four phases of the Wyckoff Market Cycle: Accumulation, Markup, Distribution, and Markdown. Each phase has specific conditions based on the closing prices, EMA values, ROC, and institutional buying or selling conditions.
The script then assigns oscillator values based on the Wyckoff phase:
Accumulation is assigned a value of 1
Markup is assigned a value of 2
Distribution is assigned a value of 3
Markdown is assigned a value of 4
These oscillator values are plotted as colored circles, with different colors representing different phases. The color values are specified in RGB format.
Finally, the script plots horizontal lines as references for each of the four phases using the hline function. These lines are labeled and color-coded to match the corresponding oscillator circles. The lines have a linewidth of 1 and are solid in style.
If the oscillator moves from level 1 (Accumulation) to level 2 (Markup), this could indicate a potential bullish trend, as the market moves from a phase of accumulation to a phase of increasing prices.
Conversely, if the oscillator moves from level 3 (Distribution) to level 4 (Markdown), this could signal a potential bearish trend, signaling that the market has moved from a phase of distribution to a phase of declining prices.
While the Wyckoff Phases Oscillator can provide valuable insights on its own, it can also be used in conjunction with other technical analysis tools and indicators. For example, you might use it alongside a volume indicator to confirm signals, or with support and resistance levels to identify potential entry and exit points.
How it works:
The script operates based on two input parameters: length and timeFrame. The length parameter, set by default to 21, determines the period used for various calculations within the script. On the other hand, timeFrame, set by default to "1", specifies the timeframe for which the script will gather and analyze data.
The script requests security information such as closing prices (higherClose), volume (higherVolume), highest prices (higherHigh), and lowest prices (higherLow) from the ticker symbol (syminfo.tickerid) within the defined timeframe.
Two exponential moving averages (ema1 and ema2) are calculated based on the closing prices, with lengths of 5 and 9 respectively.
A Rate of Change (ROC) is calculated based on the closing prices and the defined length.
An average volume (avgVolume) is calculated using a simple moving average (SMA) based on the volume and the defined length.
The script defines conditions for institutional buying and selling.
Institutional buying is determined when the closing price is greater than the lowest price and the volume is greater than the average volume.
Institutional selling is determined when the closing price is less than the highest price and the volume is greater than the average volume.
The script also defines conditions for the four phases of the Wyckoff Market Cycle: Accumulation, Markup, Distribution, and Markdown. Each phase has specific conditions based on the closing prices, EMA values, ROC, and institutional buying or selling conditions.
The script then assigns oscillator values based on the Wyckoff phase:
Accumulation is assigned a value of 1
Markup is assigned a value of 2
Distribution is assigned a value of 3
Markdown is assigned a value of 4
These oscillator values are plotted as colored circles, with different colors representing different phases. The color values are specified in RGB format.
Finally, the script plots horizontal lines as references for each of the four phases using the hline function. These lines are labeled and color-coded to match the corresponding oscillator circles. The lines have a linewidth of 1 and are solid in style.
If the oscillator moves from level 1 (Accumulation) to level 2 (Markup), this could indicate a potential bullish trend, as the market moves from a phase of accumulation to a phase of increasing prices.
Conversely, if the oscillator moves from level 3 (Distribution) to level 4 (Markdown), this could signal a potential bearish trend, signaling that the market has moved from a phase of distribution to a phase of declining prices.
While the Wyckoff Phases Oscillator can provide valuable insights on its own, it can also be used in conjunction with other technical analysis tools and indicators. For example, you might use it alongside a volume indicator to confirm signals, or with support and resistance levels to identify potential entry and exit points.
リリースノート:
The script now calculates each phase slightly more accurately and avoids repainting.