Wyckoff Stage Approximator (MTF Alerts)

Wyckoff Stage Approximator (MTF Context)
This indicator is a powerful tool designed for traders who use a top-down, multi-timeframe approach based on Wyckoff principles. Its primary function is to identify the market's current stage—consolidation (Stage 1) or trend (Stage 2)—on a higher Context (C) timeframe and project that analysis onto your lower Validation (V) and Entry (E) charts.

This ensures you are always trading in alignment with the "big picture" trend, preventing you from taking low-probability trades based on lower-timeframe noise.

Core Concept: Top-Down Analysis
The script solves a common problem for multi-timeframe traders: losing sight of the primary trend. By locking the background color to your chosen Context timeframe (e.g., 15-minute), you are constantly reminded of the market's true state.

🟡 Yellow Background (Stage 1): The Context timeframe is in consolidation. This is a time to be patient and wait for a clear directional bias to emerge.

🟢 Green Background (Stage 2 - Markup): The Context timeframe is in a confirmed uptrend. This is your green light to look for bullish pullback opportunities on your lower timeframes.

🔴 Red Background (Stage 2 - Markdown): The Context timeframe is in a confirmed downtrend. This is your signal to look for bearish rally opportunities.

How It Works
The indicator uses a combination of moving averages and trend strength to objectively define each stage:

Trend Alignment: It checks if the 5 EMA, 10 EMA, and 20 EMA are properly stacked above or below the 50 SMA to determine the potential trend direction.

Trend Strength: It uses the ADX to measure the strength of the trend. A trend is only confirmed as Stage 2 if the ADX is above a user-defined threshold (default is 23), filtering out weak or choppy moves.

Stage Definition: Any period that is not a confirmed, strong Stage 2 Markup or Markdown is classified as a Stage 1 consolidation phase.

Key Features
Multi-Timeframe (MTF) Projection: Select your master "Context" timeframe, and its analysis will be displayed on any chart you view.

Customizable Inputs: Easily adjust the moving average lengths and ADX threshold to fit your specific strategy and the asset you are trading.

Clear Visual Cues: The intuitive background coloring makes it easy to assess the market environment at a glance.

Stage Transition Alerts: Set up specific alerts to be notified the moment your Context timeframe shifts from a Stage 1 consolidation to a Stage 2 trend, ensuring you never miss a potential setup.

How to Use This Indicator
Add the indicator to your chart.

In the settings, set the "Context Timeframe" to your highest timeframe (e.g., "15" for 15-minute).

Create alerts for the "Stage 1 -> Stage 2" conditions.

When you receive an alert, it signals that a potential trend is beginning on your Context chart.

Switch to your lower Validation and Entry timeframes. The background color will confirm the higher-timeframe trend, giving you the confidence to look for your specific entry patterns.

Disclaimer: This tool is designed for confluence and environmental analysis. It is not a standalone signal generator. It should be used in conjunction with your own price action, volume, or order flow analysis to validate trade entries.