6/9/2023 0 Comments Metastock multiple indicatorIn this way, the Hilbert Sine Wave combines the best characteristics of an oscillator: signalling over-sold and over-bought in a cyclical range. Trending periods are characterized by new highs or new lows and pull backs (PB) that then continue in the direction of the trend, until exhausted (END). Cyclical periods are characterized by price bouncing off support or resistance levels and failed breakouts or “overshoots”. Markets alternate between periods when price is range bound or cycling and periods when price is moving to a new level or trending. During periods when the price activity is trending, and not displaying cyclical characteristics, the lines do not cross and the indicator does not plot the normal sine wave – the lines look “out of sync”. What makes this indicator unique is that it distinguishes between cyclical and trending price activity. Two lines are drawn (blue and red) and crossovers signal cyclical turning points. The indicator produces a sine wave plot, as shown in the bottom half of the Emini chart above. The indicator uses an algorithm, originally applied to digital signal processing, that measures the amount of cyclical energy in a stream of data, for example, a stream of market prices. The Hilbert Sine Wave was developed by John Ehlers and first published in his book “Rocket Science for Traders”. The Hilbert Sine Wave is a unique indicator Hilbert Sine Wave: Works in Trends & Cycles
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