The ( EWO ) helps identifying where you are in the 5-3 , mainly the highest/lowest values of the oscillator might indicate a potential / Wave 3. Mathematically expressed, EWO is the difference between a 5-period and 35-period moving average based on the close. In this study instead 35-period, Fibonacci number 34 is implemented for the slow moving average and formula becomes ewo = (source, 5) - (source, 34)
The application of the theory in real time trading gets difficult because the charts look messy. This study (EWO-S) simplifies the visualization of EWO and plots labels on probable reversals/corrections. The good part is that all plotting’s are performed on the top of the price chart including a histogram (optional and supported on higher timeframes). Additionally optional Cloud added to help confirming the price actions.
What to look for:
Plotted labels can be used to follow the occurrences and most importantly they can be considered as signals for possible trade setup opportunities. Rules and /Extensions are suggested to confirm the patters provided by the EWO-S
Trading success is all about following your trading strategy and the indicators should fit within your trading strategy, and not to be traded upon solely
Disclaimer: The script is for informational and educational purposes only. Use of the script does not constitutes professional and/or financial advice. You alone the sole responsibility of evaluating the script output and risks associated with the use of the script. In exchange for using the script, you agree not to hold dgtrd TradingView user liable for any possible claim for damages arising from any decision you make based on use of the script
non-repaint version made optional (default repaint version)
many many thanks for your highly valuable comments @sotiri 🙏
Entry/Exit Price Assumption default value changed from hlc3 to close
probably coding with mt4 is not much different from pine but never checked it before, and if someday I dive into MetaTrader probably i will enjoy publishing publically :-)
Regarding your request to have EWO Signals in mt4, recently I heared about TradingConnector. It apears on @Peter_O 's user status "I auto-execute TradingView Alerts into MT4/MT5 using this: https://www.tradingconnector.com. 1-second delivery"
for your info and wish you continued success
the indicator itslef is for both loıng and short opportunities only the backtest, which aims to optimize the study, is for long opportunities only