Recently I have put in my charts a different indicator from the classics that I had in the past as you can see in my articles. This indicator is the Sine Wave. What is exactly Sine Wave? It is a mathematical curve that describes a smooth repetitive oscillation. As I said for all the indicators it can’t stand alone. But you can use it for a strong confirmation. I haven’t take a trade by the single signal of this indicator, yet. But, I am testing it everyday while I am trading and many times its signals are solid and correct and they are agree with my strategy. Another good thing for this indicator is that it doesn’t repaint. The signals you will see in the charts are real- time signals. So, let’s go to see some charts.
This screen shot is from EURGBP currency pair in the 1 minute time frame. In the chart I have only a whole numbers indicator (the blue horizontal lines), volume in the candles and the Sine Wave indicator. As you can see, there are green supports and red resistances in this chart. Also, there is in a separate window one oscillator. This oscillator finds cycles of the price movement. When it finds that a cycle ends give a signal in the main chart with a support or a resistance. It depends in which direction the price is moving. So, you can take call trades or opening your buying positions in the supports and take put trades or opening your selling positions in the resistances. As I said above, this indicator doesn’t repaint.
Let’s take a more clear view of this.
In this chart I marked six signals. As you can see three supports and two resistances. The four of them are correct. I have a tick next to them. Two of them are false and I have a X next to them. Another factor you should now for the oscillator’s part is that when we are in a ranging market the oscillator makes regulars cycles.When we are a trending market the oscillator makes something like this.
As you can see in this chart we are in an up trend , in a trending market and there are now cycles for the oscillator. So, there are not signals, too.
You can make your back test and see how it is going.