SuperWave
The Super Wave, a normalized adaptive oscillator, is designed to accurately represent price trends while minimizing noise.
As the main oscillator within the Oscillator Nexus™, it is instrumental in identifying trends and reversals.
Controlled by the Main Length setting, the oscillator produces smoother results with higher values, capturing longer-term trends effectively.
Bullish Phases: Displays a greenish theme when the market shows upward momentum.
Bearish Phases: Switches to a reddish theme during downward trends.
Super Line
The Super Wave indicator is a powerful tool designed to provide traders with insights into trend direction and momentum. This documentation outlines the key features of the Super Wave, including its Super line, and how traders can effectively utilize it in their analysis.
Understanding the Super Wave and Super Line
The Super Wave indicator consists of a primary wave line and a secondary signal line. The Super line is a critical component of the indicator, enabling reactive trend direction detection. By analyzing the relationship between the Super Wave and its signal line, traders can assess the current trend direction with precision.
Key Features
1. Reactive Trend Detection
Super Line: The Super line serves as a reactive indicator of trend direction. It dynamically adjusts based on market conditions, providing timely signals of trend reversals or continuations.
2. Trend Direction Assessment
Super Wave and Signal Line Relationship: The region between the Super Wave and its signal line is presented to facilitate the assessment of the current trend direction. The color of this area is determined by the position of the Super Wave relative to its signal line.
How to Use the Super Wave and Super Line
Trend Confirmation: Traders can use the Super Wave and its Super line to confirm the direction of the prevailing trend. When the Super Wave is above its signal line and the area between them is colored green, it indicates an uptrend. Conversely, when the Super Wave is below its signal line and the area is colored red, it suggests a downtrend.
Trend Reversal Signals: Reversal signals can be identified when the Super Wave crosses its signal line. A bullish reversal occurs when the Super Wave crosses above its signal line, while a bearish reversal occurs when it crosses below.
Changing Points
Turning points in the Super Wave indicator are marked by crosses between the Super Wave and its signal line. These crosses are represented by dots on the oscillators pane, providing visual cues for traders to identify potential changes in trend direction.
Key Features
1. Crosses Identification
Dots Representation: Crosses between the Super Wave and its signal line are marked by dots on the oscillators pane, serving as visual indicators of turning points.
2. Color Coding
Green and Red Representation: By default, a Super Wave crossing over the signal line is displayed in green, while a crossing under the signal line is depicted in red. This color coding helps traders quickly distinguish between bullish and bearish turning points.
3. Turning Point Variability
Size Variation: Turning points vary in size based on their significance. Larger dots appear when crosses occur within overbought or oversold regions, indicating potentially stronger reversal signals.
4. Overbought and Oversold Turning Points
Identification Criteria: Oversold turning points are identified when the Super Wave crosses above its signal line while the Super Wave is below 20. Conversely, overbought turning points occur when the Super Wave crosses below its signal line while the Super Wave is above 80.
How to Use Super Wave Turning Points
Turning Point Confirmation: Traders can use the dots representing turning points to confirm potential changes in trend direction. A green dot indicates a bullish turning point, while a red dot suggests a bearish turning point.
Significance Assessment: Pay attention to the size of the dots, as larger dots within overbought or oversold regions may signal stronger reversal signals.
Divergences Real Time
The Super Wave oscillator includes a feature for real-time detection of divergences between the price and the oscillator. This documentation outlines how users can utilize this feature to identify potential trend reversals.
Understanding Divergence Detection
Divergence signals occur when the price of an asset moves in the opposite direction of the Super Wave oscillator. There are two types of divergences:
Bullish Divergence: Occurs when the price makes a lower low while the Super Wave oscillator makes a higher low, suggesting potential upward momentum.
Bearish Divergence: Occurs when the price makes a higher high while the Super Wave oscillator makes a lower high, indicating potential downward momentum.
Key Features
1. Real-Time Detection
Dynamic Detection: Divergences between the price and the Super Wave oscillator are detected in real-time, allowing traders to react promptly to potential trend reversals.
2. Divergence Sensitivity Adjustment
Customizable Sensitivity: Users can adjust the Divergence Sensitivity % to capture longer-term divergences. Lower values enhance sensitivity to subtle variations of the Super Wave, while higher values may filter out less significant divergences.
3. Visual Representation
Color-Coded Signals: Bullish divergences are denoted by a blue line, while bearish divergences are indicated by a red line. This visual representation helps traders quickly identify divergence signals on the chart.
How to Use Divergence Signals
Signal Confirmation: Pay attention to the color-coded lines representing divergence signals. A blue line indicates a bullish divergence, while a red line suggests a bearish divergence.
Trend Reversal Assessment: Assess the significance of the divergence signals in the context of the overall trend. Divergences can signal potential trend reversals, providing valuable insights for traders.
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