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.
릴리즈 노트
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Added nice code formatting which got removed in my transfer from v4 to v5
very impressive work! I just started using the Lorentzian Classification and this thing shows so much that you just can't see on any other indicators unless you study a book to figure out. It's like you can watch what the ML algo is thinking, as odd as it sounds. finding a way to display that odd Lorentzian Distance distribution in a meaningful way and all in one spot with a ribbon thing that almost looks like its rotating or waving is brilliant!
Futures_Mike_
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New favorite oscillator, did change all the colors though. lol
zypern
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Beautiful indicator. Thank you
D4NKM4CH1N3
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Great work. I linked your Honey Indicator for my current BTC idea. Lovely indicator.
Honestcowboy
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@D4NKM4CH1N3, Good work pal, the more people find strategies for this indicator the better it will become. Are you able to catch these moves while the move is developing or can you only see it after the move? Would love for you to take a trade in real time using it.
Gmoney1990
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Hey @Honestcowboy iv wanted to get back to you. Take a look at An OBV+SMA Indicator, and combine it with A nadarya or an OBV+SMA with buy sell signals would be amazing but id say the most accurate indicators is OBV+SMA on a one minute chart. just what iv found.
Gmoney1990
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Thank you so much for this. seems to work great! I love how you can use an hour chart on a one min OT 5 wave is great the best. using this to bot.
Honestcowboy
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@Gmoney1990, Oh I did not intend on making it for botting. Let me know how it goes, as making algo bots is kinda my thing. I've for example edited honey cypher to send alerts on a color switch of candles. From a blue area to a bright yellow.
Gmoney1990
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@Honestcowboy, iv been combining it with nadaraya watson envelope, I use it for crypto futures, because that Wave 5 seems to be pretty accurate has a loss now and then. But its better than any supply and demand or rsi or t3 and even lsma or lema. Iv been looking for months to find something that works with nadarya.