RedK_MagicWave_v1
The MAGicWAVE is my proprietary formula that produces a "Magnified" Zero Lag Weighted Average that helps track a trend on a price chart - it can be used with most chart types - not necessarily Candle - and we can adjust the magnification factor and the colors for the up and down moves (waves) - it also provides additional MA lines which can be adjusted or hidden altogether - a Zero Lag line (the yellow line) and 2 SMAs - which together can additionally act as filters or signals for entries or exits.
in a very simple way, the MAGicWAVE can be considered like a MACD projected directly on the price chart - sort of !
Comments are totally welcome.
in a very simple way, the MAGicWAVE can be considered like a MACD projected directly on the price chart - sort of !
Comments are totally welcome.
Versionsinformation:
Quick update to the MAGicWAVe
- converted code to Pine v4
- added ability to choose which price to use (Close, HL2..etc)
- changed magnification to a percentage from 0 to 100
- capped the magnification factor, if the value was too large, it caused cases where the WAVE line value becomes negative
- by default, the WAVE line is thicker for enhanced visibility - can be changed in the options
leave me a comment if the MAGicWAVe is working for you - and if you think it can be improved somehow (while still keeping it simple :))
- converted code to Pine v4
- added ability to choose which price to use (Close, HL2..etc)
- changed magnification to a percentage from 0 to 100
- capped the magnification factor, if the value was too large, it caused cases where the WAVE line value becomes negative
- by default, the WAVE line is thicker for enhanced visibility - can be changed in the options
leave me a comment if the MAGicWAVe is working for you - and if you think it can be improved somehow (while still keeping it simple :))
Versionsinformation:
One more quick update
- fixed the scale -- by default, the WAVE will now scale properly with the price - sorry forgot to fix that before
- using a cleaner chart to demonstrate how the wave should look like.
** How to use the MAGicWAVe:
- The MAGnified Weighted AVErage (MAGicWAVe) is a proprietary formula that is used to magnify the movement of the price average with minimum lag - and depicts that on the price chart itself. This concept serves not only to improve visualization of the trend, but also the strength of that trend. The idea is to use this as an additional filter or confirmation along with signals from other indicators to support a trading decision
- in summary, the simple rule is, we should not trade against the WAVE - if the WAVE is blue, then the trend is mostly positive and we should only be considering LONG positions - and vice versa.
- where the WAVE is relative to other MA line is very important .. in a strong down trend, the WAVE should be Yellow/Amber and is *below* both the price bars and other MAs
- the WAVE is very sensitive, so if it contradicts with other indicators (like for example, RSI) this probably means something funny is going on withe the trend and trades should be assessed really carefully, cause there may be a reversal (from whatever current driection) in play --
** good luck!
- fixed the scale -- by default, the WAVE will now scale properly with the price - sorry forgot to fix that before
- using a cleaner chart to demonstrate how the wave should look like.
** How to use the MAGicWAVe:
- The MAGnified Weighted AVErage (MAGicWAVe) is a proprietary formula that is used to magnify the movement of the price average with minimum lag - and depicts that on the price chart itself. This concept serves not only to improve visualization of the trend, but also the strength of that trend. The idea is to use this as an additional filter or confirmation along with signals from other indicators to support a trading decision
- in summary, the simple rule is, we should not trade against the WAVE - if the WAVE is blue, then the trend is mostly positive and we should only be considering LONG positions - and vice versa.
- where the WAVE is relative to other MA line is very important .. in a strong down trend, the WAVE should be Yellow/Amber and is *below* both the price bars and other MAs
- the WAVE is very sensitive, so if it contradicts with other indicators (like for example, RSI) this probably means something funny is going on withe the trend and trades should be assessed really carefully, cause there may be a reversal (from whatever current driection) in play --
** good luck!