The TDU Wicked Wave is our flagship custom build oscillator. By taking and combining all the best parts from well-known oscillators such as the RSI, QQE, MACD, and Stochastics, the TDU Wicked Wave can be used by traders to spot suitable entries for both continuation and reversal trades.
How it works
The oscillator is made up of two main parts, the Wicked Wave histogram, and the blue trend line.
When the histogram is below 0 we're looking for short trades only and vice versa when the oscillator is above zero we're looking for long entries.
The coloring of the histogram shows how strong the trend is. Lime green / Red means the trend is in a strong up/downtrend, an indication that we should be looking for continuation trades. Dark green/dark red means a reversal is coming and if the histogram is white it means that the trend is changing.
The blue trend line.
The blue line shows if the trend is up or down. If the blue line is above the histogram then we're in a downtrend, if it's below the blue line then we are in an uptrend. By using the blue line to determine the trend, we can use the histogram to find continuation or reversal trades. For example, when the blue line is below the histogram (uptrend) and we see the histogram going from green->white->green we can safely enter a continuation trade long.
Signals and alerts
The indicator supplies the following signals and alerts
1. Zero cross signal
The zero-cross signal gets marked by an X on the chart and occurs every time the histogram crosses the zero line.
2. Trend Reversal signal
The reversal signal (R) indicates a possible trend change, When this signal happens at the support of resistance lines there is a high probability that the market will reverse.
3. Trend Continuation signal
The continuation signal is plotted by a C on the chart. It signals a continuation in a trend. When market is trending up or down and a continuation signal appears then this might be a good place to add-on to an existing trade
- Custom-built oscillator
- Signals entries for both reversals , continuation and zero-cross trades
- Works on any timeframe
- Works on any asset/instrument
- Works on any bar type
- small bugfix.