Buying Climax + Spring [Darwinian]

Buying Climax + Spring Indicator [Darwinian]

Overview
Advanced Wyckoff-based indicator that identifies potential market reversals through **Buying Climax** patterns (exhaustion tops) and **Spring** patterns (accumulation bottoms). Designed for traders seeking high-probability reversal signals with strict uptrend validation.
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Method
🔴 Buying Climax Detection
Identifies exhaustion patterns at market tops using multi-condition analysis:

**Base Buying Climax (Red Triangle)**
- Volume spike > 1.8x average
- Range expansion > 1.8x average
- New 20-bar high reached
- Close finishes in lower 30% of bar range
- **Strict uptrend validation**: Price must be 30%+ above 20-day low

**Enhanced Buying Climax (Maroon Triangle)**
- All Base BC conditions PLUS:
- Gap up from previous high
- Intraday fade (close < open and below midpoint)
- **Higher confidence reversal signal**

🟢 Wyckoff Spring Detection
Identifies accumulation patterns at support levels:
- Price breaks below recent pivot low (false breakdown)
- Close recovers above pivot level (rejection)
- Occurs at trading range low
- Optional volume confirmation (1.5x+ average)
- Limited to 3 attempts per pivot (prevents over-signaling)

✅ Uptrend Validation Filter
**Four-condition composite filter** prevents false signals in sideways/downtrending markets:
1. Close-to-close rise ≥ 5% over lookback period
2. Price structure: Close > MA(10) > MA(20)
3. Swing low significantly below current price
4. **Primary requirement**: Current high ≥ 30% above 20-day low
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Input Tuning Guide

Buying Climax Settings:

**Volume & Range Thresholds**
- `Volume Spike Threshold`: Default 1.8x
- Lower (1.5x) = More signals, more noise
- Higher (2.0-2.5x) = Fewer but stronger exhaustion signals

- `Range Spike Threshold`: Default 1.8x
- Adjust parallel to volume threshold
- Higher values = extreme volatility required

**Pattern Detection**
- `New High Lookback`: Default 20 bars
- Shorter (10-15) = Recent highs only
- Longer (30-50) = Major breakout detection

- `Close Off High Fraction`: Default 0.3 (30%)
- Lower (0.2) = Stricter rejection requirement
- Higher (0.4-0.5) = Allow weaker intraday fades

- `Gap Threshold`: Default 0.002 (0.2%)
- Increase (0.005-0.01) for stocks with wider spreads
- Decrease (0.001) for tight-spread instruments

- `Confirmation Window`: Default 5 bars
- Shorter (3) = Faster confirmation, more false positives
- Longer (7-10) = Wait for deeper automatic reaction

Uptrend Filter Settings

**Critical for Signal Quality**
- `Minimum Rise from 20-day Low`: Default 0.30 (30%)
- **Most important parameter**
- Lower (0.20-0.25) = More signals in moderate uptrends
- Higher (0.40-0.50) = Only extreme parabolic moves

- `Pole Lookback`: Default 30 bars
- Shorter (20) = Recent momentum focus
- Longer (40-50) = Longer-term trend validation

- `Minimum Rise % for Pole`: Default 0.05 (5%)
- Adjust based on market volatility
- Higher in strong bull markets (7-10%)

Wyckoff Spring Settings

- `Pivot Length`: Default 6 bars
- Shorter (3-4) = More frequent pivots, more signals
- Longer (8-10) = Major support/resistance only

- `Volume Threshold`: Default 1.5x
- Higher (1.8-2.0x) = Stronger conviction required
- Disable volume requirement for low-volume stocks

- `Trading Range Period`: Default 20 bars
- Match to consolidation timeframe being traded
- Shorter (10-15) for intraday patterns
- Longer (30-40) for weekly consolidations
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Recommended Workflow

1. **Start with defaults** on daily timeframe
2. **Adjust uptrend filter** first (30% rise parameter)
- Too many signals? Increase to 35-40%
- Too few? Decrease to 25%
3. **Fine-tune volume/range multipliers** based on instrument volatility
4. **Enable alerts** for real-time monitoring:
- Base BC → Initial warning
- Enhanced BC → High-priority reversal
- Confirmed BC (AR) → Strong follow-through
- Spring → Accumulation opportunity
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Alert System
- **Base Buying Climax**: Standard exhaustion pattern detected
- **Enhanced BC (Gap+Fade)**: Higher confidence reversal setup
- **Confirmed BC (AR)**: Automatic reaction validated (price drops below BC midline)
- **Wyckoff Spring**: Accumulation pattern at support
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Best Practices
- Combine with support/resistance analysis
- Watch for BC clusters (multiple timeframes)
- Spring patterns work best after Buying Climax distribution
- Backtest parameters on your specific instruments
- Higher timeframes (daily/weekly) = higher reliability

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Technical Notes
- Built with Pine Script v6
- No repainting (signals finalize on bar close)
- Minimal CPU usage (optimized calculations)
- Works on all timeframes and instruments
- Overlay indicator (displays on price chart)

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*Indicator follows classical Wyckoff methodology with modern volatility filters*