The Mono Waves indicator is designed
to display the wave behavior of the market on the chart. Its appearance is shown on slide 1. This indicator uses
the PPPC (Point–Percent Price Channel) indicator,
which can be downloaded for free atMarket.
When the market
moves up the upper limit of the price channel is based on the prices of High candlesticks
(for more information, see description of the PPPC indicator at the link given above). The higher the High prices rise, the
higher the PPPC indicator channel rises. In this case , one segment of the line of the Mono Waves indicator is drawn,
which is directed upwards, and which connects two points: the lowest and the highest points of the section of the chart where the PPPC channel
rises. See slide 2 (left
part).
As soon as
The price touches the lower border of the channel, the PPPC indicator switches to the construction of this lower border, which is built on the
prices of Low candles.
And the lower the Low pricesgo, the
lower the PPPC indicator channel goes. At the same time , a new segment of the line of the Mono Waves indicator is drawn,
which is directed in the opposite direction (down), and which also connects two points: the highest and the lowest point of the section of the
chart where the PPPC channel goes down. See slide 2 (middle
part).
[spoiler title=”Read More…”]
When the
price touches the upper border of the channel
, the PPPC indicator switches back to plotting this upper border. And the Mono Waves indicator builds a
new segment of its line, which is again directed upwards. And so on… see slide 2 (right side).
Since the
Mono Waves indicator is completely
dependent on the PPPC indicator, it has exactly the same parameters as the latter.
Parameters
- Channel
Width in Points – channel width in points; - Channel Width in Percent – channel
width in percent.
For the purpose of these
parameters, see the description of the PPPC indicator, which is referenced above.
Track lines
In addition to
the main monowave line, this indicator has track lines. When the indicator is first started, they are not visible. But they can be enabled
(visualize) specifying a color other than transparent for them, such as blue. After turning them on, the indicator will look like
shown on slide 3.
Why do we need
these lines? There are at least three reasons to see them on the chart.
First, these lines show the trajectory along which the right end of the segment of the mono-wave line moves during its
formation (as new bars appear). In fact, the track lines
are the real mono-wave line. This can be seen especially well if you disable the display of the main mono-wave line (by
switching its color to transparent), while leaving the display of only the track lines. See slide 4.
Secondly, the track lines show the moments when the mono-wave line breaks, i.e. the
construction of the previous segment stops and the construction of a new (opposite-directional) segment begins. To better see this, you
should add a display of the price channel lines of the PPPC indicator to the track lines. See Slide 5.
In this slide, the price channel lines (i.e. borders) are shown as thin blue lines, and the track lines are shown as thick blue lines. As seen on
In this slide, the track lines always move along one of the channel borders (either upper or lower). Sometimes the track lines jump from one channel
border to another. So, at the moment of such a jump, the mono-wave line breaks: that is, the construction of the
previous segment stops and the construction of a new (oppositely directed) segment begins. For example, when the track lines
jump from the lower to the upper boundary of the channel, the construction of the previous (downward-directed) segment of the mono-wave
line stops, and the construction of a new segment directed upwards begins.
Third, the track lines can split, thus showing … (see the continuation of the description on the “Discussion” tab”).
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