Wave Channel 3D Built by Ricardo idea from JR & Aloakdutt from indieTrades Jan. 2010
This indicator is very easy to build. We utilize Moving Averages with a set multiplier and an offset. Specially we try to use Fibonacci sequence series numbers (1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144...) as time space and multiplier (default 89, 8). Also included is Donchian Channel to locate strong trends and possible future support - resistance.
Examples of support/resistance on chart.
Dominant Price Trends
Future Support Resistance
Comparing Fibonacci Series Time Space - Multiplier
When Comparing make note of confluence support/resistance showing up with Fibonacci Series Example uses DC
When Comparing make note of confluence support/resistance showing up with Fibonacci Series Example without DC / Smooth MA
Thank you for sharing this interesting idea. The indicator initially seems to be really great based from the screenshot, but when I tested the signals they are lagging extremely behind the price movement. Even with very fast settings like smooth input(5), offsetMultiplier input(1) I could not find anything I would find useful in actual day-trading.
Don't get me wrong. I think this indicator is great when you analyze a new symbol for the very first time. It is very good to see the overall trend direction of recent weeks; to get an overall feeling where the market was headed recently.
QuantitativeExhaustion
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Thanks for that feedback ChartArt. Have explored all the features this indicator might provide. Current and future Support/Resistance , Trend Breakouts and more?
ChartArt
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My setting in action. Useful to see the overall strongest recent trend direction (and yes, also the major past support/resistance zones).
ChartArt
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Period 4 smoothed on weekly SPY chart. If only trading would be always that easy :D
QuantitativeExhaustion
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Looks even better with HA.
QuantitativeExhaustion
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You should also compare longer time series and multipliers. I picked Fibonacci Series, showing how in the example above. More support/resistance folds, higher probability of seeing those areas again displaying support/resistance.
sigmadict
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Today maybe it would have been more accurate to use this indicator, my stop loss support was broken too early
sigmadict
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Green live VS Grey line
I MISSED THE POP
sigmadict
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Using setting (1,50,4)
sigmadict
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We can verify with my the S/R I previously draw. It's not far from reality, I recommend to use it as a reference and validate with a line previous S/R more precisely.
Don't get me wrong. I think this indicator is great when you analyze a new symbol for the very first time. It is very good to see the overall trend direction of recent weeks; to get an overall feeling where the market was headed recently.