Welcome to my system and thread. This system evolved over many years of leading a forex group and generating educational materials for newbies. I've chosen to make this system freely available. The EA and indicators will be an open source project. Volunteer MQ4 programmers are especially invited to participate. I do reserve copyright to all material I personally present here, but you may borrow it with express permission for noncommercial purposes. Simply ask, and cite the source. Designing functional systems that maximize trading profit appeals to me. Constructive evaluation, input, and questions welcome. Judgmental comments and disparaging remarks are not. OK, let's begin.
WAVES refers to the cyclic fractal structure of the foreign exchange currency market. Price action changes in rolling waves, guided by certain intrinsic principles (such as golden mean proportion, Fibonacci levels, support and resistance levels, longer TREND and shorter embedded trends, etc.). Essentially cycles and countercycle patterns over time. WAVES manifest in trending and ranging market conditions.
TREND period ranges from monthly candlestick chart, all the way down to one minute candle. My MT4 platform includes monthly, weekly, daily, 4 hour, 1 hour, 30 minute, 15 minute, 5 minute, and 1 minute timeframes. Fundamental factors change as time periods naturally shift. Each year, month, day, major business market open and period (about 8 hours) bring different conditions to the markets. Tick (transaction) data affect all timeframes, especially signifigant within the current minute candlestick.
Various INDICATORS exist, some of which can signal price action changes before they happen: so called 'leading' indicators. Relative Strength Index (RSI) and Momentum indicators are examples. No indicator is 100% reliable, but there are several widely used to SIGNAL probable changes in price action levels. A currency 'Heatmap' as I define it is a graphic representation of all currencies or currency pairs in the entire forex Market or a specific Group (subset) of currency pairs being traded. Currency pair Groups are sometimes called (market) Baskets.
MIDDLE and EXTREME are two areas within each price region or timeframe.
A 'MIDDLE' condition is a neutral location, away from the extremes in either time, price level, or momentum. Associated with indecision, change of trend, balance of market buyers vs. sellers (Bulls vs Bears) momentum and control, Market price action tops and bottoms, chart Triangles and Pennants.
An EXTREME condition is a positive or negative location, away from the middle. Examples are price action high or low levels, support and resistance areas, maximum profit or loss, biggest gainers and losers, steep indicator angles. For more, see my 9:52PM post here:
http://trendchaser.org/forum/phpBB3/...&sd=a&start=10
My system includes market evaluation in all 9 TFs, and over 14 or 16 currency pairs that are commonly traded, with relatively lower spreads and higher volatility. The entire GROUP can be split into 2 sub groups which I call Profit Group and Loss Group. Volatility can be identified using an Average Daily Range (ADR) indicator. Which GROUP you use depends on which currency pairs your Forex Broker offers.
We need a 9 timeframe HEATMAP for all currency pairs in our selected GROUP. My friends Trendchaser coded a great group trading expert advisor, and Orest has created a wonderful indicator which can be both be modified for our trading system purposes. Robert Hill has contributed his fine coding skills to refining both of these. Julius Figueroa has provided some insights which have helped me to improve the system. Finally, Steven Young has coded a GROUP HA indicator I designed. Robert and Steven have both been very helpful in coding changes to my upcoming WAVES HEATMAP Expert Advisor based on the WAVES system method.
I've attached the unfinished heatmap indicator (install in MT4 Experts folder), BasketBars and T3RSI GROUP indicators, single pair indicators modified T3RSI, Dynamic S&R, Volatility and a Profit/Loss indicator now revised to reflect new BUYJPYpairs and SELLJPYpairs groups. Install these all in MT4 Indicators folder.
Current 14Dec08 WAVES System procedure:
1. Check Orest HEATMAP, BasketBars, and T3RSI GROUP indicators, and MTF Heiken Ashi price charts for multiple timeframe GROUP and subgroup trends.
2. If no GROUP trade, check HEATMAP for single pair trades. Then check Wave Signal and T3RSIplus for single pair trade entry timing.
3. Best trading entry from EXTREMES with MIDDLE conditions followed by breakout and start of new Trend.
4. Monitor open GROUP trades with BasketBars, T3RSI GROUP, and HEATMAP for exit signals.
5. Monitor open single pair trades with HA candle price chart, T3RSIplus, Wave Signal, and Volatility momentum indicators.
Prosperous regards,
comdoc
WAVES refers to the cyclic fractal structure of the foreign exchange currency market. Price action changes in rolling waves, guided by certain intrinsic principles (such as golden mean proportion, Fibonacci levels, support and resistance levels, longer TREND and shorter embedded trends, etc.). Essentially cycles and countercycle patterns over time. WAVES manifest in trending and ranging market conditions.
TREND period ranges from monthly candlestick chart, all the way down to one minute candle. My MT4 platform includes monthly, weekly, daily, 4 hour, 1 hour, 30 minute, 15 minute, 5 minute, and 1 minute timeframes. Fundamental factors change as time periods naturally shift. Each year, month, day, major business market open and period (about 8 hours) bring different conditions to the markets. Tick (transaction) data affect all timeframes, especially signifigant within the current minute candlestick.
Various INDICATORS exist, some of which can signal price action changes before they happen: so called 'leading' indicators. Relative Strength Index (RSI) and Momentum indicators are examples. No indicator is 100% reliable, but there are several widely used to SIGNAL probable changes in price action levels. A currency 'Heatmap' as I define it is a graphic representation of all currencies or currency pairs in the entire forex Market or a specific Group (subset) of currency pairs being traded. Currency pair Groups are sometimes called (market) Baskets.
MIDDLE and EXTREME are two areas within each price region or timeframe.
A 'MIDDLE' condition is a neutral location, away from the extremes in either time, price level, or momentum. Associated with indecision, change of trend, balance of market buyers vs. sellers (Bulls vs Bears) momentum and control, Market price action tops and bottoms, chart Triangles and Pennants.
An EXTREME condition is a positive or negative location, away from the middle. Examples are price action high or low levels, support and resistance areas, maximum profit or loss, biggest gainers and losers, steep indicator angles. For more, see my 9:52PM post here:
http://trendchaser.org/forum/phpBB3/...&sd=a&start=10
My system includes market evaluation in all 9 TFs, and over 14 or 16 currency pairs that are commonly traded, with relatively lower spreads and higher volatility. The entire GROUP can be split into 2 sub groups which I call Profit Group and Loss Group. Volatility can be identified using an Average Daily Range (ADR) indicator. Which GROUP you use depends on which currency pairs your Forex Broker offers.
We need a 9 timeframe HEATMAP for all currency pairs in our selected GROUP. My friends Trendchaser coded a great group trading expert advisor, and Orest has created a wonderful indicator which can be both be modified for our trading system purposes. Robert Hill has contributed his fine coding skills to refining both of these. Julius Figueroa has provided some insights which have helped me to improve the system. Finally, Steven Young has coded a GROUP HA indicator I designed. Robert and Steven have both been very helpful in coding changes to my upcoming WAVES HEATMAP Expert Advisor based on the WAVES system method.
I've attached the unfinished heatmap indicator (install in MT4 Experts folder), BasketBars and T3RSI GROUP indicators, single pair indicators modified T3RSI, Dynamic S&R, Volatility and a Profit/Loss indicator now revised to reflect new BUYJPYpairs and SELLJPYpairs groups. Install these all in MT4 Indicators folder.
Current 14Dec08 WAVES System procedure:
1. Check Orest HEATMAP, BasketBars, and T3RSI GROUP indicators, and MTF Heiken Ashi price charts for multiple timeframe GROUP and subgroup trends.
2. If no GROUP trade, check HEATMAP for single pair trades. Then check Wave Signal and T3RSIplus for single pair trade entry timing.
3. Best trading entry from EXTREMES with MIDDLE conditions followed by breakout and start of new Trend.
4. Monitor open GROUP trades with BasketBars, T3RSI GROUP, and HEATMAP for exit signals.
5. Monitor open single pair trades with HA candle price chart, T3RSIplus, Wave Signal, and Volatility momentum indicators.
Prosperous regards,
comdoc
Attached File(s)
< Here's the result:
Here's the principle behind this entire system.