By popular request, here is my incarnation of a sine wave cycle support and resistance study similar to Barry Taylor’s excellent indicator (TradeStation, NinjaTrader, MultiCharts) over at Emini-Watch. The indicator plots support and resistance levels based on John Ehlers’ MESA Sine Wave. The advantage of the MESA Sine Wave is in identifying cyclical turning points before they occur; 1/8th of a cycle prior according to Ehlers. The study begins plotting the horizontal dots (white overhead resistance, red support) when a cycle turn is predicted and will continue until the next cycle turn occurs. When the market begins to trend and is no longer cyclic, the price levels are seen to be breakout points. Also pictured is a new version of the Volume Profile that allows you to stack as many profiles as you desire to create a plot with greater detail.
Sine Wave Cycles Support and Resistance
Eric,
You continue to Rock!
Peace-
RappidFyre
That looks like another of your “thinkScript just can’t do that … wait … what?!” creations.
Have you done anything with Parabolic?
(tos recently put these in the the pre-defined studies … with visible source … yah!) and I’ve been meaning to see if those at least correlate with the TradeStation implementation.
nifty, thanks — i need to give MESA a second look under ToS. I used to use the MESA-based moving averages at another broker, but the Sine Wave stuff just seemed to require too much interpretation when trading for my comfort. Even though my current trading style is pretty nice for me, this looks interesting enough to make me give it a second look, anyway.
Hi,
Do the sup/res levels show up in advance or as the price is hitting them? I have not tried it yet. Thanks.
The levels begin to form as the sine wave cross occurs. The level will reflect the highest/lowest price in a 5 bar range around the bar with the cycle turn. So, the level will be fluid until two bars have passed since the cross and then will be fixed thereafter.
-Eric