This is a script to draw a square wave on the chart, with an indicator for current price.
Markets undergoing Dow Jones or Wyckoff Accumulation/Distribution cycles tend to move in such waves, and if the period of the cycles are detected, a signal for accumulation/distribution phases can be created as an early warning.
Useful inputs: - Average True Range as the wave height. - Assumed Wave period as the wave duration.
I divided the current price wave by 2 to make the indicator more visually friendly.
@kajukatli1101, Hey, I have found that the optimal time frame is different for each market. It is up to the user to experiment to find a good fit.
kajukatli1101
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@DarkPoolTrading, thanks for your response, I'm talking about the setting of indicator on this 4h chart above you have chosen the wave_duration as 88 on the overlay indicator and wave_duration as 25 in the indicator which is below.please explain how to choose that.
UnknownUnicorn1043646
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@kajukatli1101, Hey, thanks for the question. The time setting is subjective. It is up to the user to determine a wave duration with a good fit.
I recommend looking for wave durations that match with previous cycles in the price.
kajukatli1101
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@DarkPoolTrading, ok thanks, Really appreciate it.