No Holy Grail?? Make it Happen by Using Wave Theory

R

Ramesh16

Member
Ramesh16 my only goal here is to help people like you and others better understand how the markets work... Too often you do not see this given on the web its like secret squirrel stuff right? I mean that does not help use as we learn right are just expected to learn as we go? Yes but we all need answers and most just want your dollars and then your questions are not answered. Most out there want $$ your dollars. Not here at usethinscript these peeps are here to help. DITTO...
I owe you big thank you RMC!! I learned a lot from your postings. Thank you again.
 
BenTen

BenTen

Administrative
Staff
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@J007RMC Sorry for the late response. You didn't tag me in your comments; that's why I didn't receive any alerts. To answer your question about the chatroom: there is only one official useThinkScript chatroom at the moment. However, it's available only to our VIP members. I will think about having a public channel within it. Will see. Thank you for your kind words as well. Appreciate the support.
 
P

Playstation

Active member
VIP
@BenTen hope you can consider my request on trade alerts in the AMM discord 🤙🤙🤙
 
D

dreamb0x

New member
VIP
still learning about this script, i think im getting some knowledge on it by staring it for a few days ;)
couple more question. what does that N37 on the right means? i notice it keeps changing.
also also the row that says S&P, DJI etc what does those number represents?

 
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R

Ramesh16

Member
still learning about this script, i think im getting some knowledge on it by staring it for a few days ;)
couple more question. what does that N37 on the right means? i notice it keeps changing.
also also the row that says S&P, DJI etc what does those number represents?

no sqz in last 37 bars
 
U

upsignal

New member
@J007RMC how do you read that bottom indicator? LOL made me start drinking when i saw it :)
 
T

toopoor88

Member
If this is working for you congrats but man this indictor like someone stated a few posts back is looking like a Christmas tree :oops:
 
G

ganq

New member
2019 Donor
PLEASE PAPER TRADE my original until you feel comfortable trading and see how it fits

I cannot assume responsibility for others lack of trading knowledge or mistakes besides I would feel terrible to think my words caused a loss.
within the context of this posting.

For those who do not fully understand trading using the given charts and indicators
  1. You now have the tools
  2. The stock market is a life's long education
  3. Nothing can replace experience learned in the markets
  4. You will find a ton of helpful advise here and across this site
  5. Have an entry/exit plan always so look
  6. Always hold back some cash
  7. Good Luck Traders

I really think this as good as it gets folks enjoyed first and foremost by our the members and their generous script modifications.
So now lets get out there practice and make this real

Updated 03/25/2020 15:05

I edited out the vertical lines of the Mobious wave structure app you can choose however many support and resistance lines in the program

DMI indicator: https://www.investopedia.com/articles/technical/02/050602.asp

Trend reversals we can use triggers:



Wave Theory Version



  • Wait for good entry on 2 min chart after bottom wave line forms
  • Once you pull the trigger if movement is up then wait for the top wave line to form your stop should already be in place so sell at top
  • The bottoms and tops may appear to be in but not always wait and wait again. Many times I will leg in if I missed the bottom but stocks wave patterns due to the cyclic nature of the market. patterns repeat ie wave patterns this is a given.
  • Best odds coordinate bottoms and top of waves with TMO position ie up/down not in between.

:) I enjoy scalping and I realize their is no holy grail in the world of trading indicators but I do believe this to be as close as I will ever come in finding one. I trade this on a 2 min chart and higher...very simple follow the TMO Laguerre bottom indicator :cool:


  • Most important greed kills accounts
  • Position/sizing can kill accounts
  • Unless you are comfortable with it do not average down
  • Have a trade plan for entry and exits... most important
  • If your down on a trade and not even a mental stop... how often do stocks recover after a 10% drop... Protect your money
  • Percentage are in your favor for the next trade just don't get stuck in trades the mm's will like you lol


Many understand the concept some do not.

Short term wave A
Medium term wave B
Long- Term wave C
Wave D the projected AB equals CD

A waves measures the trend of the prior six or so bars.
B waves measures the trend of the prior 15 or so bars.
C waves measures the trend of the 30 or so bars.
The market premise is based on cycles/waves and subsets

Gartley Patterns explained........ http://tradegartleypattern.blogspot.com/2010/10/gartley-pattern-70-80-success-ratio.html


Ideally the ability to measure both the mid and longer term waves should lead to a long or short entries depending on the time frame. So why fight the market. Look entries near the top and bottom of the wave B and wave C. Depending on one’s risk/reward these entries should be profitable right. The magenta/cyan candle colors repaint but use these for a heads up to a potential wait then wait again for confirmation with these... Those candles do re`paint be careful those are meant to be a heads up only to change. the wave script will aid to confirm the tops and bottoms of the current wave. Iv'e included a harmonic patterns script and the swing hi/lo script that shows the top and bottom candles as magenta/cyan candles. as well as the swing hi/lo lines adjusted for current day they adjust for the current and previous day see user settings. You will also find the TMO script.

How I approach the trade:

A
I look through various time frames to read and confirm market direction and strength. I start with the higher time frames and work my way down to the 2 min chart... Weekly, Daily, 4 hr, 15 min, 2 min charts Trade whatever times frames you are comfortable trading. Note at the convergence of wave B and C this forms a triangle that should lead Wave D and usually is profitable if the trade continues in that direction. Because I trade inter day no swings I draw fibs from the most recent high to the most recent low on whatever time frame I'm watching.

B I strictly trade weeklies I like to be in and out of the trade same day. Lets say I have a stock picked to trade
and I have a trade plan.

C I will watch the market say the SPY for strength and weakness and then more importantly say I spot a squeeze opportunity on the market then I take my trade and visa versa. So then I know the market is moving in my intended direction to check on my trade while continuing to watch the market. The risk to reward is in my favor barring market news/tweets.


My market intuition and the trade is moving in my direction

I included the Mobious wave structure script script it will plot major/minor lines it seemed like a good option. Choose stocks with high liquidity stocks that are popular and known to be in demand like apple for instance, Buy/Sell at or near tops/bottoms using the indicators provided. Watch and different stocks react and use different times to show weakness/strength. For instance if the indicators are turned down on say a 15 min chart then go to a lower time frame and check it's strength.

  • Always have a look back and forward time frames to locate the ticker strength and direction based on the lower indicators.

If sufficient strength on upper time frame is absent probably a very good bet the next lower time frame strength.
In case your wondering about the NS yellow label this is a function of the horizontal price bar and will display S for squeeze.

Tracking my gains:

Daily win percentages using the wave concept: current week ending 03/20.20
I will be posting weekly gains updates here



This represents the current year although I only began using the wave concept 02/18/2020 so I still have prior losses to re-coup.
And although I have access to a number of different charts I can assure you the below numbers are based simply off the wave theory.

Week Ending 03/20/20


Week ending 03/15/20





All of that being said I would ask the coders to design a script that will give us something very similar to what I use on my personal chart I
feel it would be very beneficial to our community.
Hey @J007RMC, thank you for sharing this strategy with us, really appreciate it.

I am still going through the setup you shared and trying to understand all the studies involved. In the original post you mention:

“Wait for good entry on 2 min chart after bottom wave line forms

Once you pull the trigger if movement is up then wait for the top wave line to form your stop should already be in place so sell at top”

Where are the bottom and top wave lines forming?, can you please highlight in the screenshot you provided? It would be really helpful.

Thanks again!
 
T

Trader Raider

Member
VIP
how do you read that bottom indicator?
Watch the ADX line, upsignal. Watch what price does when the ADX flattens, rises, or falls. Some traders like to see it rise above 20-25 to confirm strength of trend. Watch what happens when the (-) or (+) lines cross the ADX line. Watch what price does when ADX is above or below the (-) or (+) lines. The DMI can tell you a lot of things if you watch it for a while to learn its nuances, although I no longer use it.
 
B

bubz

New member
Combine this with the 20EMA and it works really well also. During this market, it might not be good for a less violate market.
 
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C

Craighaber71

Member
2019 Donor
Warehouse
VIP
@J007RMC Are your waiting for a wave line to form before entry or just looking for entry with the arrows..
 
N

NoDough

New member
VIP
@tradegeek @J007RMC OK...so check this out...using the HIGH/LOW Swing found here...I combined that with an MTF RSI crossing the 5 SMA found below that I was able to get to work using my copy and paste skills I was able to create second confirmation of the HIGH/LOW Swing that in case the candles repaint you will know that you are still in the correct trend up...see pic below.


What I cannot get to work because of my limited coding skills is the line vs point that plots on the RSI crossing the 5 SMA above in the same pic with the CYAN and MAGENTA lines for the 5 SMA crossover.

@tradegeek I don't know how proficient you are in coding...seems like you're far better than I am...are you able to implement the following line of code that @korygill suggested that I use in the regular RSI 5 SMA cross into the MTF RSI 5 SMA crossover below?

def vrsi = RSI().RSI;
plot p_rsi = vrsi;
def isIncreasing = vrsi >= vrsi[1];
p_rsi.AssignValueColor(if isIncreasing then Color.GREEN else Color.RED);
p_rsi.SeTPaintingStrategy(PaintingStrategy.LINE_VS_POINTS);

The reasoning behind this is simple...Lets say you are trading the 2 min chart...you can set the MTF RSI 5 SMA crossover to 5 min aggregation....With the points in place that tell you when the RSI is increasing and decreasing you can then use such points when the RSI changes colors for even more precise "exit" points. I don't know how to code this...and it took me over 30 min before finally asking for help...This might be simple but it takes me way too long.

I really suggest anyone that is using the strategy that @J007RMC shared here to take a look at the MTF RSI 5 SMA crossover that I shared here for even better results. I want to test this out further with the SuperTrend I am testing currently...to make this strategy even better so for those that know how to code can you all please help out with some requests to really "Make This Happen?"

UPDATE: @horserider was able to to add the line vs point onto the MTF RSI 5 SMA cross over...Guys you can now use RSI color points as additional exit or entry points to confirm with this strategy. I am asking now asking to see if the 5 SMA could also be made to change color based on increasing and decreasing condition. Will keep this post updated.

Code:
declare lower;

input length = 14;
input over_Bought = 70;
input over_Sold = 30;
input price = close;
input averageType = AverageType.WILDERS;
input showBreakoutSignals = no;
input rsiMALength = 5; #hint rsiMALength: RSI Moving Average Length
input rsiAverageType = AverageType.SIMPLE;
input aggregationPeriod1 = AggregationPeriod.FIVE_MIN;



def price1 = close(period = aggregationPeriod1);


def NetChgAvg = MovingAverage(averageType, price1 - price1[1], length);
def TotChgAvg = MovingAverage(averageType, AbsValue(price1 - price1[1]), length);
def ChgRatio = if TotChgAvg != 0 then NetChgAvg / TotChgAvg else 0;

plot RSI = 50 * (ChgRatio + 1);
plot OverSold = over_Sold;
plot OverBought = over_Bought;
plot UpSignal = if RSI crosses above OverSold then OverSold else Double.NaN;
plot DownSignal = if RSI crosses below OverBought then OverBought else Double.NaN;


def isIncreasing = rsi >= rsi[1];
rsi.AssignValueColor(if isIncreasing then Color.GREEN else Color.RED);
rsi.SeTPaintingStrategy(PaintingStrategy.LINE_VS_POINTS);


# plot the RSI Moving Average
def rsiMA = MovingAverage(rsiAverageType, RSI, rsiMALength);
plot prsiMA = rsiMA;

#prsiMA.AssignValueColor(if prsiMA > prsiMA[1] then Color.GREEN else Color.RED);

#plot Fifty_Line = 50;
#fifty_line.SetDefaultColor(GetColor(8));
#fifty_line.HideTitle();
#fifty_line.SetStyle(Curve.long_dASH);

UpSignal.SetHiding(!showBreakoutSignals);
DownSignal.SetHiding(!showBreakoutSignals);

#RSI.DefineColor("OverBought", GetColor(5));
#RSI.DefineColor("Normal", GetColor(7));
#RSI.DefineColor("OverSold", GetColor(1));
#RSI.AssignValueColor(if RSI > over_Bought then RSI.Color("OverBought") else if #RSI < over_Sold then RSI.Color("OverSold") else RSI.Color("Normal"));
OverSold.SetDefaultColor(GetColor(8));
OverBought.SetDefaultColor(GetColor(8));
UpSignal.SetDefaultColor(Color.UPTICK);
UpSignal.SetPaintingStrategy(PaintingStrategy.ARROW_UP);
DownSignal.SetDefaultColor(Color.DOWNTICK);
DownSignal.SetPaintingStrategy(PaintingStrategy.ARROW_DOWN);



Where did you find the "HIGH/LOW Swing found here" script?

Thanks!
 
H

HighBredCloud

Active member
Where did you find the "HIGH/LOW Swing found here" script?

Thanks!
J007RMC shared his chart somewhere in the thread...the script for HIGH/LOW was part of his studies...also there have been additions to this script where the arrows were added...also somewhere in this thread.
 
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