- Added an input to change the source that is used to compare the candles to determine the waves, by default is the close, and the new option is the high/low (wicks).
- Modified the mode input, now can be seen bull and bear mode at same time (The overlap of the indicators will be fixed for the next release).
- Modified the color of the wave, by default blue is for bull and red for bear.
Let me know if you want me to add new features of this indicator, like wave extensions.
+ After a Wave C (not qualified as a 0), if there's not a 0 point the price afterwards and the price violates previous 5th wave, it will count as a wave 1, not 5.
As requested I will add projections of waves C and 5, in the future. For now just use fib projection tools. :P
will disappear, and the count must begin anew. (Similarly, if the low close of
TD D-Wave 4 closes below the low close of TD D-Wave 2, then TD D-Wave 2 will
shift to where TD D-Wave 4 would otherwise have been.) " - Tom Demark TD D-Wave by Jason Perl, page 77.
This was happening with wave A and C as well, so it was a bug.
Please, if you find a bug let me know.
Bearish: After wave A if a single candle breaks below wave 5 bottom, it gets labeled as wave 5 instead of wave b.
1. Show Projections (deactivated by default): Displays wave 3 and 5 projections.
2. Invalidate A Waves (deactivated by default): Invalidates wave a if it falls below wave 4 or wave 2 (this is not in the book, and is something that I totally made up, so don't use it, lol. Joke aside, I prefer it this way, but don't use it if you want to stick to what the book says, which is probably wise).
3. Highlight Invalidations (deactivated by default): It highlights invalidations of waves of both modes at any mode. I find it useful to figure out wether the bears or bulls are in control, hence which mode should be used.
4. Display At Inception (deactivated by default): Removes additional wave counts, for those that like the charts cleaner. It only shows the inception of each wave, not the top or bottom so keep this in mind because it may look awkward.
If you find a bug please let me know, thanks.
Modified the color by default of dwave counts for a tone that is easier to be seen.
Improved performance reducing redundant code, not it loads faster.
An alternative solution is that you copy/paste the code and make your own version in pinescript with the colors of your liking.
In this script, there is one optional feature that is "Highlight Invalidations", this one highlight those events for both bull and bear waves, so if you are in a bull mode, you can see which candle is breaking up a bear wave 2 or bear wave 4, and also when it breaks down a bull wave 2 or bull wave 4. I find it useful because I consider those signs of strength of the wave that is invalidating the opposite wave.
There is another optional feature that is not in the book called "Invalidate A Waves", this one activates invalidation of A Waves, so if you are in a A wave and it closes below the bottom of wave 4 then it becomes a wave 4, if it breaks below bottom of wave 2 it becomes wave 2, and so on... This is not in the book so without this you could have A waves going as low as the wave 1 which I find strange, furthermore, in Tom Demark book, he never goes in detail about TD D-Waves which I find very intriguing, why the fuck does he even talk about them if he doesn't explain them in detail. Rant aside, I added this because of in demark book (1994), he says that a wave 5 is terminated with a 20 low close, this isn't mentioned in J. Perl book either, I am planning on adding this as well as an optional feature in the future.