This is based on Weis Wave principle with different customization. Namely
Shows Volume (in thousands) for each wave
Calculates the effort/reward matrix of each wave (proprietary calculation)
Can show either bar count or Effort/Reward (E/R) Matrix with volume for each wave
Default is E/R Matrix only
You can choose what you want to see from the indicator setting. It could be just wave volume, just ER Matrix (default), both ER Matrix and volume, ER Matrix and bar count or all three.
How It Works
BUY - Look for a wave (down) that ends at and around a same level with double or more ER Matrix
SELL- Look for a wave (up) that ends at and around a same level with double or more ER Matrix
There is also a principle called fading E/R Matrix that suggest the dying interest of either buyers or sellers. That also could be a good pointer to initiate fresh trades in the direction against the fading participants.
Points To Note That said, it is best that you try to align it with your own trading style and existing principles. For example, I use only this indicator and don't even use candle sticks. It's more to do with the way I want to wade away negative and psychological brain fades. I generally use it with E/R Matrix only. As I have mentioned earlier, I always look for a level failure, i.e when I see the price fail to make a new high/low at around the same level with double or more E/R Matrix value. When this happens the price tends to reverse direction. I generally keep the SL 10 pips below/above the last wave end depending on the kind of trade I am into. What I have seen, it has a decent accuracy rate. Of course you ought to have basic price action idea to use this indicator effectively. It is for the people who have prior price action knowledge, so don't expect the script to generate buy/sell signal, because it won't. This indicator itself is an ecosystem of trading and you have to use it based on your trading style.
You can apply it on to your existing charts (bar, candle, line) or can use the wave alone as I do. Just make sure that you keep your opacity of your candles/bars to a level that makes the wave itself more prominent.
The colour combination looks best on a dark background
Release Notes
⋅
Added the option to change the Pip Size for wave change
@dj_pune Thanks for the cool idea! I have put it on a chart but I can't see any indications of ER, volume, etc... I have ticked/unticked a box in indacator's settings several times.... and still nothing. I use it for crypto. Any ideas?
Satei
⋅
Very good indicator, thank you for your work. I am just missing in settings the possibility to change the value of ATR/part of price/brick size for adjusting the waves. Any chance you could add it?
azeemmasoodahmed
⋅
hi it is very useful but only its showing E/R only in Jpy pairs but not showing in Eurusd Gbpusd Usdcad etc
RezekiTuhan
⋅
Hi Sir. This is a great code for a great indicator. Can I ask if you could share the code?
Is there a possibility to increase the label size. Its too small to read. Also If you plot the chart on white background, there are few labels that are either not visible/readable. Would be you be able to take care of it?
HDgold
⋅
Can you add an option to change colors.
Thanks for the great indicator.
onegriot
⋅
Probably the best application of Weis Waves zigzags, thank you for this!
Just a little note - for some reason I can't change the colors for the labels. I change them in the indicator settings but they don't change on the chart. Other than that works great!
trinhtiendung1981
⋅
Thanks for greats idea!Can you explain more details about E/R and price action with SL 10 pips.
Thanks for the cool idea! I have put it on a chart but I can't see any indications of ER, volume, etc... I have ticked/unticked a box in indacator's settings several times.... and still nothing. I use it for crypto. Any ideas?