MWA [ Multi Wave Analysis ]
Idea that have led in developing this indicator is to try to distinguish Waves of different Amplitude and Period.
Simplified, Moving Average (MA) with a Larger period is the baseline for a Shorter period Moving Average (MA)
Shorter period Moving Average (MA), fluctuated around a Longer period Moving Average (MA)
Unlike Moving Average (MA), which followed the closing price, WMA predict price trends, and indicate, the deviation from the defined wave.
WMA can reach a value Higher than the maximum closing Price for that period, the reason, the Price moves below the short-wave, the Moving Average (MA) continue to grow, but due to changes in Market conditions, Momentum, Inertia, or the Fundamental data, Price did not continue its growth.
As a basis, suggest the ordinary 200 period MVA, then we deduct MWA 200 from the closing price, now we Calculate 100 period MVA of Residual,
Again, deduct MVA 100 from Residual.
Procedure must be repeated for 50, 25, 12 and 6 period.
You can use all MWA components simultaneously, one pair, or only one component as Wave Moving Average.
Advantages of these modified moving average is obvious, at least,
earlier detection of changes in Trend precise Support and Resistance definitions,
Signal is generated if MWA with Lower period Growth / Fall Above / Below Higher period WMA.
Better results would be achieved if they could determine the exact period, the Cycle of each Wave.
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