Wavetrend in Dynamic Zones with Kumo Implied VolatilityI was asked to do one of those, so here we go...
As always free and open source as it should be. Do not pay for such indicators!
A WaveTrend Indicator or also widely known as "Market Cipher" is an Indicator that is based on Moving Averages, therefore its an "lagging indicator". Lagging indicators are best used in combination with leading indicators. In this script the "leading indicator" component are Daily, Weekly or Monthly Pivots . These Pivots can be used as dynamic Support and Resistance , Stoploss, Take Profit etc.
This indicator combination is best used in larger timeframes. For lower timeframes you might need to change settings to your liking.
The general Wavetrend settings are the same that are used in Market Cipher, Market Liberator and such popular indicators.
What are these circles?
-These are the WaveTrend Divergences. Red for Regular-Bearish. Orange for Hidden-Bearish. Green for Regular-Bullish. Aqua for Hidden-Bullish.
What are these white, orange and aqua triangles?
-These are the WaveTrend Pivots. A Pivot counter was added. Every time a pivot is lower than the previous one, an orange triangle is printed, every time a pivot is higher than the previous one an aqua triangle is printed. That mimics a very common way Wavetrend is being used for trading when using those other paid Wavetrend indicators.
What are these Orange and Aqua Zones?
-These are Dynamic Zones based on the indicator itself, they offer more information than static zones. Of course static lines are also included and can be adjusted.
What are the lines between the waves?
-This is a Kumo Cloud Implied Volatility indicator. It is color coded and can be used to indicate if a major market move/bottom/top happened.
What are those numbers on the right?
-The first number is a Bollinger Band indicator that shows if said Bollinger Band is in a state of Oversold/Overbought, the second number is the actual Bollinger Band Width that indicates if the Bollinger Band squeezes, normally that happens right before the market makes an explosive move.
Please keep in mind that this indicator is a tool and not a strategy, do not blindly trade signals, do your own research first! Use this indicator in conjunction with other indicators to get multiple confirmations.
Marketliberator
Honey CypherHoney Cypher Aims to do 4 things
Momentum
Trend Strength
Overbought and oversold zones
Being the most beautiful indicator you ever see
Momentum
The big yellow honey waves primary use is to see the momentum of the market, they can be used in a similar way you would use a MACD or Chaikin Money Flow
On this image you see the honey waves being plotted to the 30 minute timeframe while on the 5 minute chart to have an understanding of longer time momentum in the chart.
Trend Strength
Most tools of the indicator can be used for that but the yellow and purple slope strength lines are made specificaly for this. When you see them curl down you know trend is strengthening towards the downside.
The candle color is based on the amount of Honey waves sloping in one direction. This might be the best tool in the indicator to find Trend Strength. Bright yellow candles mean strong bears while the bright blue candles mean strong bulls.
Overbought and oversold zones
By analysing the waves on a chart you start to learn how big waves can get before a reversal or consolidation period arrives.
You can become profitable with the indicator. But to be honest, my primary focus in making this indicator was find ways to visualise alot of data in a clear and beautiful way.
You should use the indicator with some out of the box ideas instead of just trusting the signals.
examples:
Find a head and shoulders pattern on the top of a huge honey wave.
Find a bottom small wave while the others honey waves are in the opposite direction for entering a pullback.
Use the honey for direction but the yellow and purple slope line crosses for entrys.
Comment your own strategys, I made this open source to be able to get community feedback.
The Honey Cypher waves are calculated in a similar way as the MACD histogram. I've combined MACD formula with some of the lazybear formula. It looks for the distance between 2 moving averages to find trend strength. After that the end results get's smoothed out. It is very satisfying to change that as you can see the honey waves create a melting like motion on each change of smoothing.
Below a preview of the honey cypher moving average lines, all lines have a length that is based on the fibonacci number sequence. Honey cypher measures the distance between for example length 5-8 averages.
I hope this inspires coders to create very beautiful scripts.
