Discussing the article: "Automating Classic Market Methods in MQL5 (Part 2): Wyckoff Cause and Effect—Point and Figure Price Targets"
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Check out the new article: Automating Classic Market Methods in MQL5 (Part 2): Wyckoff Cause and Effect—Point and Figure Price Targets.
This article builds a self-contained MQL5 Expert Advisor that completes the Wyckoff cycle: it detects accumulation/distribution with a finite state machine, enters at the last point of support/supply, and calculates exit point-and-figure counts under Wyckoff's Cause and Effect. We detail the box size from range ATR, a 1-box reversal, target validation, and a 2R fallback. Readers get runnable code without external dependencies.
In Part 1, we built an Expert Advisor that detects Wyckoff accumulation and distribution with a finite state machine. It confirms the spring→SOS sequence for longs and the upthrust→SOW sequence for shorts, then enters at the last point of support or supply.
That EA answered the question of where to enter. This article answers the companion question that Wyckoff considered equally important: where to exit. The answer comes from his second law—cause and effect—and the point and figure count that measures it. The EA built here is self-contained: every function needed to run it is included below, and no code from Part 1 is required.
Richard Wyckoff taught that markets move in two phases: accumulation, where large operators quietly absorb supply at low prices, and distribution, where they offload those positions at high prices. The transition from accumulation to markup, or from distribution to markdown, is not random. It is the proportional effect of a measurable cause. Wyckoff called this his second law, and he gave traders a precise tool for measuring it: the point and figure count.
This article builds a complete Expert Advisor that automates the Wyckoff trading cycle in MQL5. It detects structures with a finite state machine, confirms key events, enters at the correct structural point, and calculates take profit using a point‑and‑figure model of the range.
Author: Tola Moses Hector