Wyckoff Springs [QuantVue]The Wyckoff Springs indicator is designed to identify potential bullish reversal patterns known as "springs" in the Wyckoff Method. A Wyckoff spring occurs when the price temporarily dips below a support level, then quickly rebounds, suggesting a false breakdown and a
potential buying opportunity.
How it works:
Pivot detection:
The indicator identifies pivot lows based on the specified pivot length.
These pivot points are stored and analyzed for potential spring patterns.
Volume and Range Checks:
If volume confirmation is enabled, the indicator checks if the current volume exceeds a threshold based on the average volume over the specified period.
The indicator ensures that the price undercuts the defined trading range before confirming a spring pattern.
Spring Identification
The indicator checks for price conditions indicative of a Wyckoff spring: a temporary dip below a pivot low followed by a close above it. The recovery must take place within 3 bars.
If these conditions are met, a spring label is placed below the bar.
Features:
Pivot Length:
The user can set the pivot length to match any style of trading.
Volume Confirmation:
An optional feature where the user can specify if volume confirmation is required for a spring signal.
Volume threshold can be set to determine what constitutes significant volume compared to the average volume over a specified period. By default it is set to 1.5
How to Trade a Spring:
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