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
This is not a sine wave indicator. It looks and acts nothing like the sine wave indicator that Ehlers came up with.. So basically you changed around a full stochastic indicator and are charging money for it?
Paul,
The Sine Wave Cycles indicator is based on Ehlers’ MESA Sine Wave. The levels of potential support and resistance are plotted based on crossovers of Ehlers’ indicator. So, yes, this is not Ehlers’ sine wave in its pure form – that is already available in TOS. This is a derivative indicator that is designed to allow you to visualize the same information in a different way. I find it quite useful. There is no stochastic in this indicator as you suggest.
Yes, I charge less than a buck for the indicator in the subscriber package along with 96 others at last count.
Eric
Where in TOS is this indicator in its pure form? What is the name of it?
I have tried the mesa sine wave in tos charts but it displays it really messed up looking and not like the sine wave indicator should look like at all. Any ideas?
Taking a look at this the last few days. Gotta fool with time frames to see where it works best on each market. Looks great though. Some days it seams price only respects the sine wave support and resistance.
Really nice when Sine Wave lines up with other support and resistance levels like pivots and you see turning points in other studies like stochastics KST etc.
Eric,
I see that your study (like the native ToS study) requires you to input the dominant cycle. The e-mini watch study seems to dynamically discover the dominant cycle. Any chance of you adding this capability?
Perfect Hedge’s version in the forum does just that.
-Eric
Awesome! I really like Barry Taylor’s indicators, but unfortunately he doesn’t have ToS versions. Do you have an indicator alone the lines of the Better Momentum indicator? Also I see your Tape Momentum indicator offers similar data to Barry Taylor’s Better ProAm. Can Tape Momentum be setup to paint bars in a similar fashion to Better ProAm?
Joe, i trade tos and chart barrys better indicators on trade station. On my tos chart I also have the trix indicator running. I trade mini and shoot for 4 points per day. I have been averaging 3.5 points per day. Last week 4 days were winners. Like Barry, if I lose 4, I quit for the day and do my day job! Hope it helps. Steve
What are all the lines you have there? Is that part of the platform? auto channels?
TOS Channel tool – manually drawn.