Author: Aleksey Terentyev
The MASi_WaveHist is an innovative tool for traders, based on the market cycle concepts described by renowned trader Raghee Horner.
"Wave is a straightforward market cycle indicator: a set of three exponential moving averages derived from the Fibonacci number 34. It gives me a clear visual representation of market trends—or the lack thereof. For my trading strategy, it's more effective than traditional trendlines or support and resistance levels. While those tools have their merits, they can be misleading across different market conditions, and don't necessarily show the market's cycle."
— R. Horner, from the book Forex on Five Hours a Week: How to Make Money Trading on Your Own Time
The principle behind the MASi_WaveHist is quite simple:
- Green Bars: Indicate an uptrend, appearing when a bar closes above the EMA 34 (High).
- No Candles: Suggest a consolidation phase, occurring when the bar closes between the EMA 34 (High) and EMA 34 (Low).
- Pink Candlesticks: Show a downtrend, which becomes evident when a bar closes below the EMA 34 (Low).
Signals are confirmed when three consecutive candles of the same color appear, providing a stronger indication of the market direction.
This indicator was initially developed in MQL4 and first shared on Code Base at mql4.com on May 30, 2017.
Fig. 1. The MASi_WaveHist indicator
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