Wick Sweep

The Wick Sweep indicator identifies potential trend reversal zones based on price action patterns and swing points. Specifically, it looks for "Wick Sweeps," a concept where the market temporarily breaks a swing low or high (creating a "wick"), only to reverse in the opposite direction. This pattern is often indicative of a market attempting to trap traders before making a larger move. The indicator marks these zones using dashed lines, helping traders spot key areas of potential price action.

Key Features:

* Swing Low and High Detection: The indicator identifies significant swing lows and highs within a user-defined period by employing Williams fractals.

* Wick Sweep Detection: Once a swing low or high is identified, the indicator looks for price movements that break through the low or high (creating a wick) and then reverses direction.

* Fractal Plotting: Optionally, the indicator plots fractal points (triangle shapes) on the chart when a swing low or high is detected. This can assist in visually identifying the potential wick sweep areas.

* Line Plotting: When a wick sweep is detected, a dashed line is drawn at the price level of the failed low or high, visually marking the potential reversal zone.

Inputs:

* Periods: The number of bars used to identify swing highs and lows. A higher value results in fewer, more significant swing points.

* Line Color: The color of the dashed lines drawn when a wick sweep is detected. Customize this to match your chart's theme or preferences.

* Show Fractals: A toggle that, when enabled, plots triangle shapes above and below bars indicating swing highs (up triangles) and swing lows (down triangles).

Functionality:

* Swing High and Low Calculation:
- The indicator calculates the swing low and swing high based on the periods input. A swing low is identified when the current low is the lowest within a range of (2 * periods + 1), with the lowest point being at the center of the period.
- Similarly, a swing high is identified when the current high is the highest within the same range.

* Wick Sweep Detection:
- Once a swing low or high is detected, the script looks for a potential wick. This happens when the price breaks the swing low or high and then reverses in the opposite direction.
- For a valid wick sweep, the price should briefly move beyond the identified swing point but then close in the opposite direction (i.e., a bullish reversal for a swing low and a bearish reversal for a swing high).
- A line is drawn at the price level of the failed low or high when a wick sweep is confirmed.

Confirmations for Reversal:

* The confirmation for a wick sweep requires that the price not only break the swing low/high but also close in the opposite direction (i.e., close above the low for a bullish reversal or close below the high for a bearish reversal).

* The confirmation is further refined by checking that the price movement is within a reasonable distance from the original swing point, which prevents the indicator from marking distant, unimportant price levels.

Additional Notes:

* The Wick Sweep indicator does not provide standalone trading signals; it is best used in conjunction with other technical analysis tools, such as trend analysis, oscillators, or volume indicators.

* The periods input can be adjusted based on the trader’s preferred level of sensitivity. A lower period value will result in more frequent swing points and potentially more signals, while a higher value will focus on more significant market swings.

* The indicator may work well in ranging markets where price tends to oscillate between key support and resistance levels.