LazyBear's WaveTrend port has been praised for highlighting trend reversals with precision and punctuality (minimal lag). But strong "3rd Wave" trends can "embed" or saturate any oscillator flashing several premature crosses while stuck overbought/oversold. This happens when the trend stretches over a longer timescale than the oscillator's averaging window or filter time constant. Our solution: monitor many timescales. With Fractal Resonance Bar's rich color codings, strong wavefronts form across timescales and jump out like an approaching line of thunderclouds!
Fractal Resonance Bar color-codes the status of eight underlying stochastic oscillators, with each row averaging over twice the time of the row above.
Fractal Resonance Bar shifts its timescales along with your choice of main chart timescale:
Daily chart: 1 day through 128 day (~4 month) oscillators.
The color map is configured as follows:
Hot Pink: Extreme Overbought (> 100%) rolled over to sell, but oscillators probably embedded with more upside (revert to Dark Green) possible after a pause.
Deep Red: Overbought (> 75%) crossover ripe for selling (validated when red spreads to timescales below).
Brown: Minor (< 75%) crossover sell from which could bounce back green or start a plunge toward gray/black.
Gray/Black: Mature (< -75%) sells turning full black in a plunge before the dawn.
Lime Green: Extreme Oversold (< -100%) and bouncing, though may yet bottom even lower.
Green: Oversold (< -75%) crossover ripe for buy. Green spreading to all timescales below will validate bottom is in.
Dark Green/Teal: Mature buy in overbought (> 75%) range, waiting for sell crossover to Hot Pink for a pause or correction.
White Stripes are Impulsive Trend Warning Fractal Resonance Bar warns of oscillator embedding by showing white stripes when it detects strong, early surges in the timescale rows below.The white stripes usually accompany Hot Pink warning it's too early to go short, or Lime Green warning it's too early to go long. Heeding these warnings will probably miss the exact top or bottom, but you're less likely to get overrun in a momentum move. Usually the market gives us a second opportunity to short very close to the top or buy very close to the bottom after the warning white stripes have subsided.
NOTE: Recently rolled over Futures contracts may not have enough history for all oscillator calculations, in which case no bar colors will appear.
Tweakable Attributes
The default Channel Length, Stochastic Ratio Length and Lag Length work reasonably well on all timescales in our experience. Minor tweaks don't hurt but this may just overfit to a particular chart history.
We don't recommend changing the 75% Overbought and 100% Extreme Overbought default levels as these are ideal numbers relative to the underlying oscillator statistic calculations. But these settings can shift the color transition levels.
Embedded attribute controls the sensitivity/conservativeness of the white strip embedding detectors. Closer to 75 increases the warning sensitivity while closer to 100 decreases the aggressiveness of blocking white stripes.
Embed Separation also affects the white stripe sensitivity.
Row width increases each row's thickness to fill the available screen height you've afforded the bar.
This is the coolest indicator on TradingView! It's a very elegant way of compacting so much information into a small area.
alluhama556
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Thannx
Marzipug
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this is perfect! Thanks for sharing
Marzipug
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@Marzipug, These have got to be the most advanced indicators I've ever used. Incredible, thank you for sharing
LucF
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A really good idea—and a very elegant way to compact the different time frames.
Metalxx14
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This is great! but I see 16 bars, instead of 8, how is it 128 hours in the 1 hour chart if each bar is double the time of the bar above it? I notice when colors get darker a break out is about to happen
Metalxx14
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@Metalxx14, for example what do you think about this i.imgur.com/qwF5me5.jpg , I noticed a breakout happens whenever a lot of the bars turn brown or black
pythagoras
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@Metalxx14, Yes I tend to see wave C breakdowns on brown that don't reverse until black. The loss of the white blocking bars means that super strong bitcoin uptrend is fatiguing. The past two days action is finally breaking the up channel since like $6000, but there's still a lot of bright red which can power a bounceback. *usually* the first break of a channel is the final 4th wave which means we could still see one more wave 5 to slight new high e.g. touch or retest 20k. Lights out then for bitcoin, if not sooner. Next week?
Metalxx14
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@pythagoras, That's possible it also crosses the william's alligator teeth for the firs time which might signal a further downtrend. Can you explain more how to use this wonderful indicator you've created and the patterns you've noticed that show up.
So as the first bar is showing brown to green and this is the 1 hour time frame, does this mean it is it went from being overbought to mature sold crossover? then what about the next bar, there are 16 bars I can count, does it measure the 2 hour time frame, the next one 4, 8, etc? because if so then it'd be up to 36,000+ hours instead of 128 if each bar doubled.
pythagoras
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@Metalxx14, The doubling up of the bar heights is just for visual emphasis there are still just 8 timeframes. Yes they represent the maturity of the 8 oscillators 1 hour, 2 hour, 4 hour, 8 hour ... 128 hour. Yes bitcoin has gone from overbought to mature sold where it can bounce again but there's no way to know for sure. As has become clear from using these indicators awhile, whether the market reverses when a particular timeframe saturates just depends on the size/scale of the current fractal pattern or E-wave degree there are infinite variations. You must always be looking at context of higher dimensions to help predict.