This indicator is based on the Weis Wave described by David H. Weis in his book Trades About to Happen: A Modern Adaptation of the Wyckoff Method, more info how to use this indicator can be found in this video. The Weis Wave is an adaptation of Richard D. Wyckoff’s method Wave Charts. It works in all time periods and can be applied to all asset types.
Unlike other implementations I found here on TradingView, this implementation make use of a Renko-like zig zag pattern, very similar to how it is described in David H. Weis' book. The settings for the zig zag pattern are very similar to the standard Renko settings here on TradingView, in the "Renko Assignment Method" you either chose "ATR" or "Traditional" (read more about it here ). The ATR length or the brick size is then entered in the textbox "Value". You can also chose another setting in the "Renko Assignment Method" drop down named "Part of Price" which calculate the brick size from the current close and divide it by the value in the text box "Value". It is also possible to chose if the zig zag pattern shall use the high/low, the open/close or just the close as the most extreme values in its calculation, you select this in the drop down "Price Source".
TradingView's pine script does currently not support to print non-static text on the chart, so it is not possible at this point to write out the volume on the zig zag chart. It is also not possible to have both an overlay and separate chart pane in the same indicator, therefor this indicator is split up in two.
Fix bug that that made it impossible to enter floats into the Value textbox even for non ATR values.
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Since it doesn't work very well to extend the zig zag line to the last bar in real time, a setting has been added where one can enable or disable this feature. False by default.
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Fixed minor rendering behavior when "Extend to Last Bar" is enabled.
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Fixed bug in algorithm.
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Since some people does not seem to understand how this indicator works but rather focus on complaining about that the zig zag chart is not plotted at the exact turning points I have decided to window dress the example graph with more pinpointed settings than the defaults, to avoid such comments in the future.
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Fixed so the graph will work better in real time which makes the "Extend To Last Bar" option deprecated and removed from the settings dialogue.
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Changed the default value for Price Source to Close, because that is what David H. Wise is using in his original implementation of this indicator.
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The example chart got corrupted in the last update for some reason so try to make another release.
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Update to Pine Script Version 4 and add resolution to study.
I did some changes in the code and could manage to plot the wave volume (multiple of thousand) on the chart itself. Like below
systemlevels
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@dj_pune, Just what I was looking for. Would you be willing to share the changes you made in the code to plot the volume numbers on the chart? Thank you.
Brilliant script. I have been using it with Renko chart display and find that I can reproduce Weis analysis. I am noticing that some scripts on display here do now seem to apply non-static text to charts. So any chance you might now be able to add the cumulative volume to the graph at each turning point? That would make this brilliant script fantastic!
modhelius
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@hutech, thank you! According to plotting cumulative volume per wave, I actually have a private version that have this functionality, but have not had time to fully finish it. But hopefully it will be published pretty soon.
helwali
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@modhelius, that would be awesome when it's published. looking forward to it and thanks for the amazing work
pennrobert
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But there are no Numbers in this chat
secwang
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amazing work!
glennc100
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These 2 programs work great...is there a way to have the volume totals print at the end of each zigzag?