Investopia Market Cycle

This script is designed to visualize the 4 phases of the market cycle based on Wyckoff logic and Trend Following principles. It helps traders identify the current market state to align their strategy accordingly.

How it works: The script analyzes the relationship between Fast MA (Trend) and Slow MA (Baseline) combined with Price Action to categorize the market into 4 phases:

🟡 Phase 1: Accumulation (Yellow) - Potential bottoming process. Price starts to recover above the Fast MA while the long-term trend is still bearish.

🟢 Phase 2: Markup (Green) - Strong uptrend. Fast MA crosses above Slow MA, and price holds above the trend. ideal for trend-following strategies.

🟠 Phase 3: Distribution (Orange) - Momentum loss. Price drops below the Fast MA while the long-term trend is still bullish. A warning sign for trend exhaustion.

🔴 Phase 4: Markdown (Red) - Strong downtrend. Fast MA crosses below Slow MA.

Features:

Background Color Coding: Automatically highlights the chart background based on the detected phase.

Dashboard Panel: Displays the real-time market phase and suggested actions on the chart.

Customizable: Users can adjust MA periods and smoothing types (EMA/SMA) to fit different assets (Stocks, Crypto, Forex).

Access: This is an invite-only script for Investopia members. Please contact me for access.