Markets undergoing Dow Jones or Wyckoff cycles tend to move in such waves, and if the period of the cycles are detected, a signal for phases can be created as an early warning.
- as the wave height.
- Assumed Wave period as the wave duration.
I divided the current price wave by 2 to make the indicator more visually friendly.
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.