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Trend Waves is a developed trading algorithm that performs the functions of an oscillator. Thanks to the calculations performed, the indicator works absolutely without signal delay and is used to determine the current market trend and its strength, to search for reversal points and to determine the market in the overbought or oversold zone. This indicator very easy to use and thanks to its visualization. It is represented in the lower window of the price chart in the form of two intersecting lines that move in a certain direction relative to the signal levels. Thus, these indicator factors are the main ones when generating a signal.
The Trend Waves indicator is suitable for any timeframe and currency pair, as these parameters do not affect its effectiveness.
Input parameters
The Trend Waves settings consist of several sections. The input parameters are responsible for its technical operation, the Colors section is responsible for its color scheme, and the Levels section is responsible for adding additional signal levels to its window. In fact, the indicator parameters can be left unchanged, since it adapted to any timeframe and currency pair.
- WavePeriod - value of the indicator period. The default value is 10.
- AvgPeriod - period of moving averages of the indicator. The default value is 21.
- SoundAlert - parameter responsible for sound notification when receiving a signal. The default value is false.
- EmailAlert - option to notify when an alert is received to a previously specified e-mail. The default value is false.
Indicator signals
The Trend Waves indicator is very simple, but at the same time effective in use. Trading on the indicator is made only during a trend in the market. And the trade directly depends on the direction of the current market trend. To determine the direction of the trend, one should take into account the direction of the indicator lines, their location relative to signal levels and intersection, which is indicated in the indicator window as a dot of a certain color. If the indicator determines an upward trend, buy trades are opened, if the trend is downward, sell trades. In both cases, trades are closed when the direction of the current trend changes.
Signal for Buy trades:
- The indicator lines cross at least -60 so that the fast line is higher than the slow one. Both lines are directed upwards and at the point of their intersection there is a point with a growth value.
Upon receipt of such conditions on a candle, confirmed by the indicator signal, a buy trade may be opened, due to the presence of an uptrend in the market. Such a trade should be closed at the next intersection of the lines. At this moment, a change in the current trend is expected, which in turn will allow considering the opening of new trades.
Signal for Sell trades:
- The indicator lines move down from level 60 and intersect so that the line with the falling value is higher than the line with the rising value. A point with the falling value appears at the place of their intersection.
A sell trade can be opened immediately upon receipt of such conditions on a signal candle. At this moment, a downtrend is formed on the market. Such a trade should be closed when the current trend changes, namely at the moment of reverse intersection of the lines. At this moment, it should be considered opening new trades.
Conclusion
The Trend Waves indicator is a very effective and extremely easy to use trading algorithm. It is perfect even for beginners, not only due to its convenient and understandable visualization, but also due to the presence of signals. To obtain the necessary trading skills and fully master the trading algorithm, preliminary practice on a demo account is recommended.
You may also be interested The Trend Arrows trading indicator for MT4
