The Wyckoff Range Strategy is a trading strategy that aims to identify potential accumulation and distribution phases in the market using the principles of Wyckoff analysis. It also incorporates the detection of spring and upthrust patterns.
Here's a step-by-step explanation of how to use this strategy:
Understanding Accumulation and Distribution Phases:
Accumulation Phase: This is a period where smart money (large institutional traders) accumulates a particular asset at lower prices. It is characterized by a sideways or consolidating price action. Distribution Phase: This is a period where smart money distributes or sells a particular asset at higher prices. It is also characterized by a sideways or consolidating price action. Input Variables:
crossOverLength: This variable determines the length of the moving average crossover used to identify accumulation and distribution phases. You can adjust this value based on the market you are trading and the time frame you are analyzing. stopPercentage: This variable determines the percentage used to calculate the stop loss level. It helps you define a predefined level at which you would exit a trade if the price moves against your position. Strategy Conditions:
Enter Long: The strategy looks for a crossover of the close price above the SMA of the close price with a length of crossOverLength and a crossover of the low price above the SMA of the low price with a length of 20. This combination suggests the start of an accumulation phase and a potential buying opportunity. Exit Long: The strategy looks for a crossunder of the close price below the SMA of the close price with a length of crossOverLength or a crossunder of the high price below the SMA of the high price with a length of 20. This combination suggests the end of an accumulation phase and a potential exit signal for long positions. Enter Short: The strategy looks for a crossunder of the close price below the SMA of the close price with a length of crossOverLength and a crossunder of the high price below the SMA of the high price with a length of 20. This combination suggests the start of a distribution phase and a potential selling opportunity. Exit Short: The strategy looks for a crossover of the close price above the SMA of the close price with a length of crossOverLength or a crossover of the low price above the SMA of the low price with a length of 20. This combination suggests the end of a distribution phase and a potential exit signal for short positions. Stop Loss:
The strategy sets a stop loss level for both long and short positions. The stop loss level is calculated based on the stopPercentage variable, which represents the percentage of the current close price. If the price reaches the stop loss level, the strategy will automatically exit the position. Plotting Wyckoff Schematics: The strategy plots different shapes on the chart to indicate the identified phases and patterns. Green and red labels indicate the accumulation and distribution phases, respectively. Blue triangles indicate spring patterns, and orange triangles indicate upthrust patterns. To use this strategy, you can follow these steps:
Jim Forte — Anatomy of a Trading Range robertbrain.com/Bull...+a+Trading+Range.pdf
Hello You have no "close entries order short" signal in your strategy (indicator), but only "close entries order long". I have checked it on different time frames. Have not seen no one example there. Please fix it. Thanks.
deperp
⋅
@kostyanius, Fixed. The strategy usually entails making quick exits followed by immediate long positions, with the exception being when the stop loss is triggered. In such cases, the strategy aims to identify another opportune moment to enter. It is important to highlight that we have taken into account the concerns raised in the comments and have made the required adjustments to the alerts. We kindly request you to review the latest modifications and inform us if everything meets your satisfaction. Thank you for your cooperation.
deperp
⋅
@deperp, I think we can add if the strategy gains 500 boosts, a backtest period, a direction if you only want to make shorts or only make longs depending on the trend of longer timeframes.
kostyanius
⋅
@deperp, Thanks. Will do. But now as i can see you indicator is already missing in the list of tradingview indicators by the search "wyckoff strategy". Probably it takes time to publish a new version. Who knows)
kostyanius
⋅
@deperp, well. it is back already. works as expected now with short closure orders signal. thanks. )
You have no "close entries order short" signal in your strategy (indicator), but only "close entries order long".
I have checked it on different time frames. Have not seen no one example there.
Please fix it.
Thanks.