EWO WaveX Elliott Wave Oscillator
- Indicatori
- Versione: 1.0
EWO WaveX — Elliott Wave Oscillator for spotting divergences.
The core idea of EWO is to compare the strength of a move with the price itself. If price makes a new high while the histogram peak is lower than the previous one, momentum is weakening: a bearish divergence. If price makes a new low while the bars below zero are smaller than before, selling pressure is fading: a bullish divergence. The histogram shows it at a glance.
EWO measures market momentum as the difference between a fast (5) and a slow (35) simple moving average of the median price (High+Low)/2. Above zero means upward momentum, below zero means downward momentum. The bar colour shows the dynamics: green when momentum is growing, red when it is fading.
How to read it
- Divergence: price makes a new extreme, the oscillator does not.
- A cross of the zero line marks a change in the direction of momentum.
- In Elliott wave theory, wave 3 usually has the tallest bars and wave 5 has lower ones. That is the classic divergence case.
- Works well together with trend channels, for example the ATC indicator.
Main settings
- Fast SMA period (5 by default)
- Slow SMA period (35 by default)
The divergence lines on the screenshots are drawn by hand as an example; the indicator does not draw them automatically. A divergence does not guarantee a price reversal.
Works on any symbol and any timeframe in MetaTrader 5. It does not open or close trades.
Trading involves risk. This product is a charting tool, not investment advice, and does not guarantee results.
