STUDENT WYCKOFF Volume Climax

STUDENT WYCKOFF Volume Climax highlights potential buying and selling climaxes by combining abnormally high volume with wide spread bars.
It is a simple Wyckoff-style tool that helps you see where effort (volume) and result (spread) reached extreme levels and may signal exhaustion or stopping action.

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1. Concept
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The script looks for bars where:

• Volume is many times higher than its recent average.
• The spread (high–low range) is much wider than usual.
• The candle has a real body (not a tiny doji).
• The bar is fully confirmed (closed).

Such bars are marked as:

• **BC (Buying Climax)** – wide up bar on very high volume.
• **SC (Selling Climax)** – wide down bar on very high volume.

The idea is not to call exact tops or bottoms, but to mark places on the chart where effort and result spike together, so you can then judge context, background and next bars in the Wyckoff sense.

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2. How the indicator works
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Inputs:

• Volume lookback – number of bars used for the average volume.
• Spread lookback – number of bars used for the average spread (high–low).
• Volume multiplier – how many times above the average volume a bar must reach to be considered “climactic”.
• Spread multiplier – how many times above the average spread the bar’s range must be.
• Min body / spread – minimum body size as a fraction of spread (0–1) to filter out near-doji candles.

Internally the script calculates:

• Range = high − low.
• Average volume = SMA(volume, volume lookback).
• Average spread = SMA(range, spread lookback).
• Body fraction = |close − open| / range.

A bar is a **climax bar** only if:

1) Volume > averageVolume × volumeMultiplier,
2) Spread > averageSpread × spreadMultiplier,
3) BodyFraction ≥ Min body / spread,
4) Bar is closed (barstate.isconfirmed).

Classification:

• If close > open → **Buying Climax (BC)**.
• If close < open → **Selling Climax (SC)**.

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3. Visuals
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The indicator works in a separate pane (overlay = false) and shows:

1) **Histogram in the subwindow**
• Value = Volume / AverageVolume (ratio).
• 1.0 line marks average volume.
• Bars are colored:
– Green for BC,
– Red for SC,
– Neutral grey for all other bars.

2) **Labels on price with force overlay**
• On BC bars a small “BC” label is plotted above the bar high.
• On SC bars a small “SC” label is plotted below the bar low.
• Labels are drawn with `force_overlay=true`, so they appear directly on the price chart even though the indicator itself is in the lower pane.

All signals are generated **only on bar close** to reduce repainting behaviour. The last, still forming bar is not treated as a confirmed climax.

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4. How to use it
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Typical applications:

• Wyckoff-style reading of climactic action
– Look for BC near potential buying climaxes in up moves, especially after long rallies or in the last part of a trend.
– Look for SC near potential selling climaxes after panics or shake-outs.

• Effort vs Result analysis
– Ask whether the market gets a lot of “effort” (volume + wide spread) but then fails to continue in the same direction.
– Pay attention to the next 1–3 bars after a BC/SC: is there follow-through or immediate failure?

• Scanning for zones of interest
– On higher timeframes BC/SC can highlight areas worth marking as potential stopping, climactic or reversal zones.
– On intraday timeframes they can show where very aggressive activity hit the tape (news, open/close auctions, liquidations).

The labels and histogram are **not** trading signals by themselves. They are context markers that tell you: “Here was a big push with big spread; now check structure, background and test behaviour.”

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5. Notes and disclaimer
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• Works on any symbol and timeframe available on TradingView.
• Uses only standard built-in volume and price data; no exotic calculations.
• Signals are calculated on confirmed bars with `barstate.isconfirmed`, so they do not repaint after the bar closes.

This script is published for educational and analytical purposes only.
It does not constitute financial or investment advice and does not guarantee any performance. Always test your ideas, understand the logic behind your tools and use proper risk management.