Real author: Witold Wozniak
The Sine Wave indicator is a powerful tool that was created in 1996 by the well-known American analyst, John Ehlers. He referred to it as a "trend oscillator," and its magic lies in its ability to detect periodicity in economic processes. Essentially, this indicator helps traders identify when these cycles are disrupted.
What sets the Sine Wave indicator apart is its unique behavior compared to adaptive moving averages during trending markets. In a clear trend, the two lines—Lead Sine and Sine Wave—move in parallel, indicating the direction of the trend based on their relative positioning. Conversely, during a flat market, the Sine Wave indicator is quick to respond to market swings, making it versatile for both trending and ranging conditions.
If you're looking to automate your trading with the Sine Wave indicator, it's quite straightforward. You can set up an automated trading system that generates buy and sell signals whenever the two lines cross. Moreover, you can close positions when these lines intersect in the opposite direction at different periods. This approach can help streamline your trading strategy.
There are two versions of the Sine Wave indicator available for traders. The original version is known as Sinewave.mq5, while the Sinewave2.mq5 offers a bit of filtering for the chaotic oscillations of the Lead Sine line, providing clearer signals.
To get started, simply place the CyclePeriod indicator compiled file into your terminal_data_folder\MQL5\Indicators\.
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