RedK_MAGicWAVe_v3: Improved Visual & Code Revamp
I have been planning to re-write the MAGicWAVe script for a long time, so here's a totally revamped version.
What is the MAGic WAVe ?
- this is one of my first indicators - and is a constant in my trading charts ...
- It's really a simple idea that plays with weighted moving averages (WMA) to produce a low-lag MAGnified Weighted Average (hence the name MAGic WAVe) - that enables me to better visualize how the momentum of the price move changes and when a change in trend is to be expected.
see link to the TA series below for more info.
- This simple concept can then be utilized in trading in a similar way to a basic MA Crossover approach, with the added benefit of the ability to magnify the trend moves
- you can also think of this as a MACD plotted on the price chart - in fact if you add a MACD to the chart and compare to the WAVe, you will see exactly what i mean.
What are the improvements in this new version
- better visualization, removed a lot of the clutter from previous versions
- the WAVe code was re-written to produce a "smoother" WAVe line.
note that the WAVe line in this version is also "lazier" than the previous version .. we need to set length to around 7 to match a 10 in v2 due to the increased lag caused by the smoothing.
- introduced the cloud fill to act as additional visual clue - introduced a WAVe "depth" variable - which will grow/shrink the fill area as preferred for improved visual.
- kept the optional slow EMA filter line set by default to 50EMA
here's a comparison of MAGic WAVe v3 (top panel) vs the older version (lower panel)
can be used with any timeframe and any instrument .. adjust settings as needed to suit the trader's own style.
- i'm not a big fan of alerts and always prefer "less signals" than "too many signals" in trading, so i don't think i will add alerts to this script in future.
Please feel free to use and comment. good luck!
What is the MAGic WAVe ?
- this is one of my first indicators - and is a constant in my trading charts ...
- It's really a simple idea that plays with weighted moving averages (WMA) to produce a low-lag MAGnified Weighted Average (hence the name MAGic WAVe) - that enables me to better visualize how the momentum of the price move changes and when a change in trend is to be expected.
see link to the TA series below for more info.
- This simple concept can then be utilized in trading in a similar way to a basic MA Crossover approach, with the added benefit of the ability to magnify the trend moves
- you can also think of this as a MACD plotted on the price chart - in fact if you add a MACD to the chart and compare to the WAVe, you will see exactly what i mean.
What are the improvements in this new version
- better visualization, removed a lot of the clutter from previous versions
- the WAVe code was re-written to produce a "smoother" WAVe line.
note that the WAVe line in this version is also "lazier" than the previous version .. we need to set length to around 7 to match a 10 in v2 due to the increased lag caused by the smoothing.
- introduced the cloud fill to act as additional visual clue - introduced a WAVe "depth" variable - which will grow/shrink the fill area as preferred for improved visual.
- kept the optional slow EMA filter line set by default to 50EMA
here's a comparison of MAGic WAVe v3 (top panel) vs the older version (lower panel)
can be used with any timeframe and any instrument .. adjust settings as needed to suit the trader's own style.
- i'm not a big fan of alerts and always prefer "less signals" than "too many signals" in trading, so i don't think i will add alerts to this script in future.
Please feel free to use and comment. good luck!
Release Notes:
- Updated plot names in the Settings / Style box
Release Notes:
Minor release:
- Improved WAVE responsiveness further .. gained around 10% faster signal vs v3.0
- Adjusted defaults to avoid big overshoots
- Improved WAVE responsiveness further .. gained around 10% faster signal vs v3.0
- Adjusted defaults to avoid big overshoots