We have already talked about the TrendWave indicator in past reviews. This is an interesting, though not without problems, indicator, which by the principle of action resembles a stochastic. The trend wave is born cyclically at the moment of overbought or oversold market. This oscillator makes a prediction about when a potential reversal will occur, eliminating the correction.

The trend wave indicator is often criticized for false signals, therefore it is worth giving a few recommendations regarding it:

  • do not let the trade take its course, you should constantly monitor the indicator signals;
  • add trend indicators to the strategy (in this strategy we will offer the option of using the indicator by yourself as an example);
  • use short timeframes.

You can get the indicator template by e-mail, the address of which should be indicated in the comments after the article.

Trend Wave: How to Make Money on Market Cyclicity

The indicator should be used on volatile currency pairs: the euro, US dollar, British pound, as this will quickly cover the loss. Exotic pairs strategy works poorly. Timeframe – M5 (5 minutes). To begin with, the indicator settings should be left basic: WavePeriod = 10, AvgPeriod = 21, Levels: 60, 50, -50, -60. But under each situation they can be adjusted. Read more about what the indicator settings mean in the previous reviews.

Conditions for opening a long position:

  • The trend wave indicator displays a yellow dot above the 50th level on the chart (a stronger signal is a dot above the 60th level).
  • At a time interval not exceeding 3 hours, TrendWave displays a blue dot.
  • The Bear line of the indicator (in the basic version has a red color) between both points has the shape of a straight line (or is closest to it, that is, there are no pronounced highs or minimums).

At the next candle we open a position with a target profit level of 10 points and a stop of no more than 30 points.

Conditions for opening a short position:

  • The trend wave indicator displays a blue dot below the -50th level on the chart (a stronger signal will be a dot below the -60th level).
  • At a time interval not exceeding 3 hours, TrendWave displays a blue dot.
  • The Bull indicator line (in the base version has a red color) has a straight line between both points (or is closest to it, that is, there are no pronounced highs or lows).

The number of transactions, even with a small timeframe is not very large, because you can allow implicit waves on the control lines Bear and Bull and less strictly apply to the levels. In any case, the strategy is the basic basis, which is adjusted and adjusted by experimentation. Install the indicator, test it and learn to make money!

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