Cause and Effect Wyckoff

Cause and Effect Wyckoff is a professional indicator designed for MetaTrader 5 (MT5), focused on automatically identifying consolidation areas and analyzing the potential market movement that follows a breakout.

Inspired by the Cause & Effect concept, the indicator detects potential accumulation/distribution ranges, measures their duration and size, and tracks the subsequent market movement after the breakout.

Key Features

Automatic Cause Detection

Automatically identifies consolidation areas and displays them directly on the chart using visual boxes.

Effect Analysis

After an upside or downside breakout, the indicator tracks the developing market movement and displays its progress in real time.

Target Zone Projection

Uses previously completed market episodes to calculate a projected target zone based on historical Effect/Cause relationships.

Effect/Cause Ratio Analysis

Calculates historical statistics, including the median and interquartile range of previous Effect/Cause ratios.

Breakout Detection

Detects breakouts above or below the confirmed Cause zone and identifies the resulting movement as bullish or bearish.

Information Panel

The integrated panel displays important information such as:

Current market state
Calibrated episodes
Effect/Cause ratio
Current Cause duration
Cause height
Effect performance

Optional Alerts

Alerts can be enabled for important events such as:

Cause formation
Upside breakout
Downside breakout
Target zone reached
Target zone exceeded
Episode completion

Fully Customizable

Adjust the indicator according to your trading style with parameters such as:

Minimum Cause Bars
Maximum Cause Height (ATR)
ATR Baseline Length
Cause Size Measurement
Calibration Memory
Show Cause Boxes
Show Building Box
Show Target Zone
Show Labels
Enable Alerts

How It Works

The indicator analyzes the market through four main stages:

1. Searching for Cause
The indicator searches for a potential consolidation structure.

2. Cause Formed
When the structure meets the configured criteria, it is confirmed as a Cause.

3. Markup — Bullish Effect
When price breaks above the Cause, the indicator tracks the upside movement.

4. Markdown — Bearish Effect
When price breaks below the Cause, the indicator tracks the downside movement.

The indicator uses factors such as Cause duration, Cause height, and ATR-based measurements to evaluate the size of the structure and its subsequent Effect.

Designed for Traders Who Use

Wyckoff analysis
Price Action
Breakout trading
Consolidation and expansion analysis
Market structure
Technical analysis
Target projection

Why Cause and Effect Wyckoff?

Instead of simply displaying traditional buy and sell signals, the indicator focuses on market structure.

It helps traders visualize:

CAUSE → BREAKOUT → EFFECT → TARGET ZONE

This makes it easier to study how a market builds a range and how price behaves after that range is broken.

Important Information

Cause and Effect Wyckoff is an analytical tool and does not guarantee trading results or profits.

The indicator should be used together with proper risk management and the trader's own market analysis.

MetaTrader 5 Compatible

CAUSE THE MOVE. MEASURE THE EFFECT. ANALYZE THE MARKET.