OPEN-SOURCE SCRIPT
Carbon Double WAM
Updated
An enhancement of the Carbon WAM Market Cycle indicator that includes an additional Carbon WAM with a different period on the same plot.
The goal is to highlight the relationship between volatility and market cycles over two different periods - 3 and 21 seem to be a good combination.
The short period WAM provides an early warning for a trend change, and the long period WAM stays in bullish or bearish mode for most of the trend.
A possible system to use with this indicator is look for crossovers between the short period and long period WAMs and zero crossings on the individual WAMs.
The goal is to highlight the relationship between volatility and market cycles over two different periods - 3 and 21 seem to be a good combination.
The short period WAM provides an early warning for a trend change, and the long period WAM stays in bullish or bearish mode for most of the trend.
A possible system to use with this indicator is look for crossovers between the short period and long period WAMs and zero crossings on the individual WAMs.
Release Notes
Republish with a clean chart.Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
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