The main purpose of the indicator is to draw the wave marking on the basis of maximum and minimum levels that has been reached on greater, average and smaller period. It starts to draw the point of a possible wave end if the price passes the deviation distance specified in the settings; the point is considered to be formed if the last closed candlestick hasn't made a new exteremum comparing to the previous candlestick. The fact of displaying a digit of a period itself is not a signal. You need to wait for confirmation of the wave end, which is forming a reverse candlestick combination or a reverse Squat bar. A signal has a special meaning in case there is a divergence or a reverse bar.
Main rules of using the indicator:
Do not buy in the sell zone, when the indicator displays '3' in a red circle. Accordingly, do not sell when the market is oversold and the green zone is forming or have been formed. It is marked with '3' in a green circle.
There should be alteration of red and green zones in the wave marking on the chart. Vertical lines on the chart indicate the beginning of such zones. The lines that join extremums are the lines of trend channels.
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