Detecting Wyckoff Events and Market Phases from Price and Volume

Summary

This document describes an indicator that uses price action and volume to label sixteen Wyckoff events and classify recent activity as accumulation, distribution, or neutral. It detects events from rolling highs and lows, volume compared with its average, candle closing position, and directional streaks. A phase engine compares recent bullish and bearish event counts, with context-dependent events evaluated against the phase established before the current bar is counted.

The indicator also marks events on the chart, draws a trading range, and displays phase strength, price position, and supply or demand conditions. The suggested use is to combine a clear phase reading with a related event, or use range boundaries to frame support, resistance, stops, and targets. These are rule-based interpretations of chart behavior, not evidence of predictive performance: the document provides no backtest or measured results. Event thresholds and range settings are configurable, and the notes caution that the same label may carry less weight in a neutral context.

Key ideas

• The indicator classifies market phases by comparing recent bullish and bearish Wyckoff event counts.
• Sixteen event labels are derived from price breaks, relative volume, candle position, and directional close patterns.
• A trading-range overlay and status panel provide context for interpreting event labels.
• The document recommends using events alongside their phase and other analysis, but provides no performance validation.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.