Hi Forex Wiki Friends,

The indicator refers to the wave theory, determines the divergence between the expected 3rd and 5th waves.

An oscillator is often used in wave analysis. It is generally accepted that the sign of the third wave is the largest extremum / oscillator wave. And the extreme point of the chart is nothing more than the fifth wave. But we cannot know in advance. Therefore, our only confirmation will be the chart reversal. At the same time, we can receive a trading signal for a reversal, identifying the divergence between the 3rd and 5th waves. For this, this indicator was created.

What is implemented in the oscillator:

- Determination of extrema on the chart (redrawn, similar to the Zig-Zag indicator)
- Finding the divergence between the extreme of the chart and the oscillator
- Alert on the 2nd or 3rd candlestick to choose from (only the current timeframe) so that there are fewer false signals
- Multi- timeframe chart. The timeframe is either automatically (lower and higher by 1 TF), or is set manually in the settings.
- Color theme for black and white backgrounds. Automatic changeover or completely manual setting.

Trade recommendations

Since we are using divergence to find pivot points, it is advisable to avoid trend / retracement that is too long or too narrow.

The presence of clearly distinguishable waves (volatility) on the chart, as well as the presence of correctly worked out divergences to the left of the chart is a good sign.

The main

Bars Count - the number of bars on which the indicator will work.

Short Period - Moving Average (MA) setting for the oscillator

Long Period - MA setting for the

MA oscillator Method - type MA. You can choose from 36 types of moving average calculations, including Hull Moving Average ( HMA )

Price - price calculation for MA. There are 22 types of price calculation to choose from.

Below in the figure is a comparison of the default oscillator and with the selected MA Method - Hull Moving Average

It is also worth noting that depending on such settings, we can get a semblance of AC, which is used to refine the entry point.

Below in the figure is a comparison of the RED Wave Oscillator with the selected MA Method - Hull Moving Average and AC (Accelerator Oscillator)

Multi-timeframe settings

MTF Bar - a setting that enables or disables a multi-timeframe bar (left or right)

Left, Center, Right - select a timeframe in the left, center and right columns
-1 and +1 - one TF lower and higher

Font Size - font size

Color - base color

Div After (Bars) - number of bars after divergence, when the signal is actual

Div in Process DN Color - color of the current divergence in Sell

Div After DN Color - color of the current divergence in Sell

Div in Process UP Color - color of the current divergence in Buy

Div After UP Color - the color of the current divergence in Buy

MTF Bar in the figure below

When you hover the mouse cursor over an object, the column will display information:

- Type of divergence
- How many bars it consists of
- How many bars have passed

Alert settings

Extreme Bar - enable / disable alert to the top of the chart

Div Alert - enable / disable alert for divergence

Div Type - divergence type
3-5 (Classic) - classic divergence, including Т2
3-5 T2 - classic divergence of the second type (the oscillator went beyond zero )
5-3 (Hidden) - hidden divergence
3-5 and 5-3 - classic and hidden divergence

All signals during operation will be displayed in the footer of the chart. This also works in the tester.

Div Bars Min - the minimum number of candles that the divergence can consist of

Div Bars Max - the maximum number of candles that the divergence can consist of

Signal on Candle- on which bar the
Current End signal will be - on the second bar
Next End - on the third bar

Show Alert Arrows On Chart - display the signal icon on the main chart. Works in real time. You can also see the signals in the tester.

Indent - the indent of the icon from the bar

Size - the size of the icon

Below is an example on EURUSD M5, screenshot from the tester. Alert 3-5, Method MA - Hull Moving Average, Current End signal (on the second candlestick).

Alert Work Time - alert working time

Alert Pop Up - enable / disable the alert pop-up window

Alert Push - enable / disable notification to the phone

Alert E-mail - enable / disable sending alerts to email

Alert Sound - enable / disable alert sound

Alert Sound Name - sound file name

Visual settings

Color - selection of color theme.
Auto - automatic change of theme. If the background is black - On Dark, if white - On White
On Dark - the theme for the dark background
On White - the theme for the white background
Manual - adjust manually
If you select Manual , then the subsequent settings will be activeWidth Histo - thickness of histogrambars Color Extreeme Bar - color tops and bottoms of the chart

Width Extreeme Bar on Histo - the thickness of the histogram, which represents the tops / bottoms of the chart

Color Extreeme Histo Div - the color of the bars displaying the divergence

Width Extreeme Histo Div - the thickness of the bars displaying the divergence

Style Histo Div- selection of the divergence drawing style

Color Chanel - channel line color

Width Line Chanel - channel line thickness

RED product strategy

Strategy based on the book by T. Joseph "Technical Analysis"

Trading rules:

1. The oscillator in divergence went beyond 0 (in the indicator, the alert type is 3-5T2)
2 . The price crossed the displaced DMA
3 . SL is placed behind the last vertex.

Pay attention to the screenshot above. There are two trading situations, but the second one did not work, because the price met resistance from the mirror level.

The FT Elliott Trigger indicator is included with the RED Wave Oscillator

Indicators without reference in ex4 format

At the moment, we are holding a charity joint in support of the project with friends of the resource.
To everyone who will help us with the collection, we will provide copies of indicators without reference for free.

All funds raised are invested in further development.