The Indicator was made based on key numbers of the golden ratio:
Conversion Line: Kw 17 (Purple Color)
Kw 34 - Short Period (Light Blue Color)
Kw 72 - Short/Medium Period (Orange)
Kw 144 - Medium Period (Yellow Color)
Kw 305 - Medium/Long Period (Dark Blue Color)
Kw 610 - Long Period (Grey)
Kw 1292 - Long Period Fractal+ (Black Color)
The baseline or also called the conversion line is identified by the Color Purple of value 17.
How to read the indicator:
Every time the conversion line (Purple Color 17 periods) crosses a Kw value (Kapua Whenua) it will always look for the next KW line above or below the value as support or resistance.
If we are in a bull market, and the price crosses below the KW17 conversion line it will go towards KW 34 as support, if the price breaks KW 34 it will go towards the next line below KW 34 as support.
Every time the conversion line or the price crosses a higher value of Kapua Whenua ( KW ) this trend will be stronger, it means, if the conversion line ( KW 17) crosses above KW 305 it will indicate more strength than if it had crossed above the KW 72 or 144 for example. So to get better results trading with the trend, always observe if the conversion line and the price are below or above some Medium/Long Period KW .
Note also that, in an uptrend, it could be that all KW are below each other. In a downtrend, it could be that all KW are on top of each other. This indicates that the farther the price is from the fractals the stronger the trend is, also, when there is a narrowing of the fractals means that the price will start to go sideways. If the price is between 2 or more Fractals, it will indicate consolidation.
A really good trend is considered when the price or the Short/Medium Period Fractals are all above or below at KW 610, which is a long period , meaning a strong uptrend or downtrend.
A larger KW can be at the same point as a smaller KW , however, the stronger color will be shown above the weaker one.
***Larger chart timeframes are better to see longer KW fractals that are above or below the price, if your chart timeframe doesn't show a bigger support or resistance , change the chart time to another longer period**
Tip - Get used to looking at line colors as your indicators, just like moving averages. You can also take or place any at any time in the configuration menu.
No verdadeiro espírito TradingView, o autor deste script o publicou com código aberto, para que os traders possam compreendê-lo e verificá-lo. Um brinde ao autor! Você pode usá-lo gratuitamente, mas a reutilização deste código em uma publicação é regida pelas Regras da Casa. Você pode favoritá-lo para utilizá-lo em um gráfico.