Weis Wave Max

13시간 전

█ Overview
Weis Wave Max is the result of my weis wave study.

David Weis said,
"Trading with the Weis Wave involves changes in behavior associated with springs, upthrusts, tests of breakouts/breakdowns, and effort vs reward. The most common setup is the low-volume pullback after a bullish/bearish change in behavior."
THE STOCK MARKET UPDATE (February 24, 2013)

I inspired from his sentences and made this script.
Its Main feature is to identify the largest wave in Weis wave and advantageous trading opportunities.


█ Features
This indicator includes several features related to the Weis Wave Method.
They help you analyze which is more bullish or bearish.

• Highlight Max Wave Value (single direction)
  
• Highlight Abnormal Max Wave Value (both directions)
  
• Support and Resistance zone
  
• Signals and Setups
  

█ Usage
Weis wave indicator displays cumulative volume for each wave.
Wave volume is effective when analyzing volume from VSA (Volume Spread Analysis) perspective.



The basic idea of Weis wave is large wave volume hint trend direction. This helps identify proper entry point.

This indicator highlights max wave volume and displays the signal and then proper Risk Reward Ratio entry frame.
I defined Change in Behavior as max wave volume (single direction).
Pullback is next wave that does not exceed the starting point of CiB wave (LH sell entry, HL buy entry).

Change in Behavior Signal ○ appears when pullback is determined.
Change in Behavior Setup (Entry frame) appears when condition of Min/Max Pullback is met and follow through wave breaks end point of CiB wave.



This indicator has many other features and they can also help a user identify potential levels of trade entry and which is more bullish or bearish.
In the screenshot below we can see wave volume zones as support and resistance levels. SOT and large wave volume /delta price (yellow colored wave text frame) hint stopping action.



█ Settings
Explains the main settings.


 -- General --

• Wave size : Allows the User to select wave size from ① Fixed or ② ATR. ② ATR is Factor x ATR(Length).
  
• Display : Allows the User to select how many wave text and zigzag appear.
  
  -- Wave Type --
  
• Wave type : Allows the User to select from Volume or Volume and Time.
  
• Wave Volume / delta price : Displays Wave Volume / delta price.
  
• Simplified value : Allows the User to select wave text display style from ① Divisor or ② Normalized. Normalized use SMA.
  
• Decimal : Allows the User to select the decimal point in the Wave text.
  
  -- Highlight Abnormal Wave --
  
• Highlight Max Wave value (single direction) : Adds marks to the Wave text to highlight the max wave value.
  
• Lookback : Allows the User to select how many waves search for the max wave value.
  
• Highlight Abnormal Wave value (both directions) : Changes wave text size, color or frame color to highlight the abnormal wave value.
  
• Lookback : Allows the User to select SMA length to decide average wave value.
  
• Large/Small factor : Allows the User to select the threshold large wave value and small wave value. Average wave value is 1.
  
• delta price [size] : Highlights large delta price by large wave text size, small by small text size.
  
• Wave Volume [Text] : Highlights large wave volume by yellow colored wave text, small by gray colored.
  
• Wave Volume / delta price [Frame] : highlights large Wave Volume / delta price by yellow colored wave text frame, small by gray colored.
  
  -- Support and Resistance --
  
• Single side Max Wave Volume / delta price : Draws dashed border box from end point of Max wave volume / delta price level.
  
• Single side Max Wave Volume : Draws solid border box from start point of Max wave volume level.
  
• Bias Wave Volume : Draws solid border box from start point of bias wave volume level.
  
  -- Signals --
  
• Bias (Wave Volume / delta price) : Displays Bias mark when large difference in wave volume / delta price before and after.
  
• Ratio : Decides the threshold of become large difference.
  
• 3Decrease : Displays 3D mark when a continuous decrease in wave volume.
  
• Shortening Of the Thrust : Displays SOT mark when a continuous decrease in delta price.
  
• Change in Behavior and Pullback : Displays CiB mark when single side max wave volume and pullback.
  
  -- Setups --
  
• Change in Behavior and Pullback and Breakout : Displays entry frame when change in behavior and pullback and then breakout.
  
• Min / Max Pullback : Decides the threshold of min / max pullback.
  
  

If you need more information, please read the indicator's tooltip.


█ Conclusion
Weis Wave is powerful interpretation of volume and its tell us potential trend change and entry point which can't find without weis wave.
It's not the holy grail, but improve your chart reading skills and help you trade rationally (at least from VSA perspective).