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Henry O. Pruden Certificate
of Proficiency in the Wyckoff Method
Please complete the information below
And let us know what classes you have taken:
5 MANDATORY COURSES
3 ELECTIVE COURSES
Wyckoff Market Discussion (3+ months) - Use Once
Wyckoff Market Discussion (3+ months) - Use Once
Swing Trading Using The Wyckoff Method
Improving Your Wyckoff Swing Trading Results
Intraday Trading Using The Wyckoff Method
High Probability Wyckoff Trade Setups
Trading Technical Analysis Signals
Momentum, Volume And Price Structure
Mastering Intraday Flow Analysis and Trading Strategies
Mastering Intraday Flow Analysis and Trading Strategies Part 2
Mastering Long-Term Campaign Investing
Mastering Swing Trading
Mastering Long-Term Campaign Investing
Using Options Strategies within the Wyckoff Framework
Wyckoff Market Discussion (3+ months) - Use Once
Wyckoff Market Discussion (3+ months) - Use Once
Swing Trading Using The Wyckoff Method
Improving Your Wyckoff Swing Trading Results
Intraday Trading Using The Wyckoff Method
High Probability Wyckoff Trade Setups
Trading Technical Analysis Signals
Momentum, Volume And Price Structure
Mastering Intraday Flow Analysis and Trading Strategies
Mastering Intraday Flow Analysis and Trading Strategies Part 2
Mastering Long-Term Campaign Investing
Mastering Swing Trading
Mastering Long-Term Campaign Investing
Using Options Strategies within the Wyckoff Framework
Wyckoff Market Discussion (3+ months) - Use Once
Wyckoff Market Discussion (3+ months) - Use Once
Swing Trading Using The Wyckoff Method
Improving Your Wyckoff Swing Trading Results
Intraday Trading Using The Wyckoff Method
High Probability Wyckoff Trade Setups
Trading Technical Analysis Signals
Momentum, Volume And Price Structure
Mastering Intraday Flow Analysis and Trading Strategies
Mastering Intraday Flow Analysis and Trading Strategies Part 2
Mastering Long-Term Campaign Investing
Mastering Swing Trading
Mastering Long-Term Campaign Investing
Using Options Strategies within the Wyckoff Framework
SUCCESS
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6/3
2025
Identifying Wyckoff Springs with Algorithmic Trading Strategies
by Wyckoff Analytics

Identifying Wyckoff Springs with Algorithmic Trading Strategies

Using AI to Develop Spring Detection Indicators

Creating algorithms for trading can be a valuable way to backtest Wyckoff strategies. Traders seeking to implement systematic approaches to market analysis can benefit from developing automated indicators that identify specific Wyckoff patterns, particularly springs.

Essential Components of a Valid Spring Pattern

When developing algorithms to identify springs, several critical conditions must be met to ensure accuracy and trading viability.

The Importance of Main Tails

The most important element in spring identification is the presence of main tails in the price action. A valid spring cannot occur where the bar is closing at the low of the date – this scenario is not acceptable for proper spring identification. The presence of significant tails indicates that buyers stepped in to push prices higher from the extreme low, which is fundamental to the spring pattern.

Closing Price Requirements

While a spring bar may close below the 50% level of the spread, this can still represent a valid pattern. The key factor is not the exact closing level, but rather the overall structure of the bar and its relationship to support levels.

Volume Confirmation

Volume analysis plays a crucial role in spring validation. Effective springs typically show volume coming in as price penetrates the support level. However, the price action should not close below the support level – the penetration should be temporary, demonstrating that the support level ultimately holds.

Risk Management Considerations

Stop Loss Placement Challenges

Distance between consecutive lows presents a significant challenge for spring identification algorithms. When the distance between two low points exceeds 10%, this creates an unacceptable scenario for traders. The reason is practical: such a large gap makes it impossible to set up appropriate stop loss levels. The distance becomes too far for effective risk management, potentially exposing traders to excessive losses.

Implementing the Algorithm

Pine Script Development for TradingView

Creating a Pine Script indicator for TradingView provides traders with a practical tool for identifying spring bars. The development process involves combining all the previously mentioned conditions into a comprehensive algorithm.

Customizable Parameters

The algorithm should include customizable parameters to enhance flexibility. The lookback period represents one such parameter, allowing traders to specify the number of bars to analyze. While an initial setting of 15 bars might serve as a baseline, traders can experiment with different values such as 20 or 25 bars to optimize the indicator for different market conditions and timeframes.

Finding the Lowest Low

A critical component of the spring identification process involves finding the lowest low during the specified lookback period. This helps establish the reference point from which to measure the spring action and determine whether the pattern meets the required criteria.

Backtesting Wyckoff Strategies

Algorithmic approaches to Wyckoff analysis enable systematic backtesting of trading strategies. By codifying the rules for spring identification, traders can test their strategies across historical data to evaluate effectiveness and refine their approach.

Conclusion

Developing algorithmic strategies for identifying Wyckoff springs requires careful attention to multiple factors including tail formation, closing price levels, volume confirmation, and risk management considerations. By implementing these conditions in a Pine Script indicator, traders can create systematic tools for identifying these important reversal patterns while maintaining appropriate risk controls through proper stop loss placement capabilities.

This was taken from our Wyckoff Trading Course – Part 1 and is for educational purposes only.

OUR SUMMER SALE IS LIVE. OVER 20 ON-DEMAND COURSES ARE INCLUDED IN THE SALE. BROWSE OUR PRODUCT CATALOG HERE!

 

UPCOMING CLASSES & EVENTS AT WYCKOFF ANALYTICS:

The Wyckoff Trading Course – Part 1 (Summer 2025):

The Wyckoff Trading Course (WTC) Part I offers a comprehensive education in the Wyckoff Method through 15 live sessions with recorded access.

This program teaches traders how to identify and follow institutional movements, anticipate market direction through price, volume, and time analysis without additional indicators, and “read the market” effectively. Students learn essential skills in three core areas:

  • Price Structural Analysis (recognizing market cycles and institutional behavior)
  • Supply and Demand Analysis (using volume-price relationships to predict market moves)
  • Relative Strength Analysis (comparing instruments to identify optimal trading opportunities)

The course provides practical tools for trading alongside major institutions that drive market trends, with real-time market analysis and historical chart demonstrations.

Join our flagship Wyckoff Trading Course

 

The Wyckoff Trading Course – Part 2 (Summer 2025):

The Wyckoff Trading Course (WTC) Part II builds on foundational knowledge through 15 live sessions with recorded access for experienced students who have completed Part I.

This advanced program enhances traders’ pattern recognition and trade management capabilities through three core focus areas:

  • Visual Recognition Skill “Practicum” (applying Wyckoff concepts through interactive exercises and drills)
  • Advanced Wyckoff Analysis (deepening knowledge of phase behaviors, volume signatures, and trend recognition)
  • Trading Tactics and Management (learning to visualize price structure scenarios, optimize entry/exit points, and implement risk management techniques)

The course emphasizes deliberate practice to help traders anticipate market direction, identify institutional players’ movements, and execute more profitable trades with greater confidence.

Students learn to select optimal trade candidates and use Wyckoff analysis alongside modern technical analysis tools for improved trading decisions.

Join the Wyckoff Trading Course – Part 2

 

Wyckoff Analytics Summer Training:

The Wyckoff Analytics Summer Training Course offers a 4-week introduction to professional trading techniques through four live interactive sessions led by experienced traders Roman Bogomazov and Tony Nguyen.

This program serves as a preview of their comprehensive Intraday and Swing Trading Program, helping traders develop a structured approach to market analysis.

Students learn essential skills in

  • Process & Playbook Development (building a personalized trading framework)
  • Post-Trade Analysis & Review (objective self-assessment)
  • Technical Training (applying Wyckoff principles to identify trading opportunities)
  • Simulation & Practice (risk-free application of skills).

The program creates a supportive learning environment where traders can learn from seasoned traders, develop disciplined decision-making processes, engage with a community of like-minded individuals, and gain practical experience that translates to real-world trading. 

Join the Wyckoff Analytics Summer Training

 

Demystifying Position Sizing: Optimizing Risk And Reward:

The “Demystifying Position Sizing” course offers a transformative learning experience focused on optimizing risk and reward strategies with RJ Hixson, former Vice President at the Van Tharp Institute.

Students will learn four key components:

  • The Missing Link to Profitability (understanding position sizing’s crucial role in achieving money objectives)
  • Master R-Multiples (calculating and implementing risk measurement tools)
  • Optimize Risk-Taking (using Expectancy and System Quality Number to inform decisions)
  • Practical Position Sizing Strategies (implementing proven approaches that align with specific trading goals)

Join Demystifying Position Sizing: Optimizing Risk And Reward

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