The Lie Detector [LucF]Sometimes the simplest things turn out to be surprisingly useful.
Wyckoff's second law of cause and effect implies that price movement (up or down) should be proportional to the effort (volume) supplied. Price is not subject to gravity; without volume it cannot move.
This one-line indicator acts a bit like a lie detector for price action.
It simply identifies bars with decreasing volume, the idea being that movement on a bar where volume has decreased is considered suspicious.
Falling volume accompanied by much price movement is more suspicious than it is on bars with less movement.
Pure luck would have it that the varying size of the candlestick bodies provides an easy way to visually grasp the degree of suspiciousness their movement should be considered with because it is directly proportional to the body's size. Large, empty bodies are more suspicious than small ones.
Taking things from the opposite perspective, this indicator reveals the more meaningful candles on your chart, the ones telling the truth, since their color is not changed if they are accompanied by rising volume.
Wyszukaj w skryptach "Wyckoff"
My WaveThis is my implementation in TradingView of my modified version of the "Weis Wave".
Given the limitations of TradingView in alter past variable values, whenever the close change direction and the wave don't I sum the volume to the present wave and also to a possible future wave.
This results in columns of a mixed color within the columns of the histogram. By changing the percentage input you can and must keep this extra columns to a minimum.
You must insert two copies of the indicator on your chart and "unmerge down" one of them. On the overlayed you must * format and edit and unmark Histup and Histdown, on the unmerged down you must * format and edit and unmark BetaZigZag and stableZigZag.
You can also unmark Bar Color on both if you don't want to colour the bars according to the waves.
Trend: If the buying waves are longer than the selling waves the immediate trend is up, and vice versa.
Look out for a change in trend if in an uptrend the selling waves begin to increase in time and distance or the buying waves shorten, and vice versa.
From the volume histogram you can get the force of the buying and selling waves.
From the price waves you get the result of that force. You can also spot the "shortening of the thrust" up or down.
Comparing the two you can spot "effort without result" "ease of movement".
References: "Trades About To Happen" David H. Weis, Division 2 of the Richard D. Wyckoff Method of Trading in Stocks.
3-10 MA Oscillator (Wyckoff) by malagadev- If ControlSMA(16) exceeds 0 means market is bullish, below 0 means market is bearish.
- Difference between SMA(3,10) is represented with blue area.
- You can operate using changes in color or trend, or simply knowing that once 0 is crossed upwards, it means the pullback is proportional so we just need a simple pattern in the price or, entering after it just crosses.
- It's better to open positions in the first pullback after the ControlSMA(16) firstly crosses 0 ("First Cross").
- It's possible to operate using momentum divergences.
