Wave Reader v2.4.2 only GOLD/XAU/USD The WaveReader is an algorithm that works out a strategy using various indicators that have been reconfigured and as soon as certain areas/goals/triggers have been reached, this is visualized as a sell or buy signal (large triangles)
The indicator also uses the Smart Money Concept (Expo) by @Zeiierman which has been reconfigured and adapted from his open source code to perfectly fit the rest of the strategy.
The smart money concept refers to the idea that capital does not only exist in the form of financial resources, but also includes knowledge, experience and networks. In the context of investing, smart money means that investors not only provide money but also add value through their expertise, industry experience and strategic influence.
In the traditional sense, "dumb money" refers to investors who merely provide capital, without any specific knowledge or insight into the industry or company in which they are investing. In contrast, “smart money” refers to investors who not only contribute financial resources, but can also make an active contribution to the development of the company.
This concept is particularly relevant in venture capital and private equity circles, where startups and high-growth companies seek capital. Smart money investors bring not only their financial support, but also their industry-specific know-how, relationships and experience. This can help companies make strategic decisions, optimize their business models and grow successfully.
Smart money can also be used in the trading environment to indicate experienced and knowledgeable investors who trade based not only on financial analysis but also on their deep understanding of the market, industry trends and fundamental business factors.
Overall, the Smart Money Concept represents a holistic approach to investments in which not only the capital but also the intellectual resources of investors can have a significant influence on the success of a company.
Of course, everything that was built into this indicator/algo will not be revealed, but there are countless hours of optimization in this project.
Explanation of the various components of the WaveReader:
WaveReader Confluence Box (CB)
The WaveReader Confluence Box is a Confluence for swing and day trading. It also confirms our one signal.
- If the price is above a newly opened CB, a long setup is confirmed.
- If the price is below a newly opened CB, a short setup is confirmed.
The WaveReader Cloud
WaveReader Cloud is our main trend.
WaveReader signals can be traded with or without confirmation.
However, the more confirmations we have, the more likely a successful setup will be.
- Green = Bullish Trend - Large Triangle (green)
- Red = Bearish Trend - Large Triangle (red)
- Gray = Neutral Trend - avoid new positions
The Waveline
The WaveReader Waveline is a trend confirmation. The waveline shows whether a trend is strong and serves as additional confirmation of a profitable setup.
Take trades when in bullish (green) or bearish (red), avoid new trades in neutral (black).
Re-entries and take profits
Re-entries and take profits are only displayed in the chart from the 1h time frame.
- Re-entry long position = small ▲ (green)
- Re-entry short position = small ▼ (red)
- Take profit in a long position = ⨯ (green)
- Take profit in a short position = ⨯ (red)
Additional features
- Display market structure (internal and swing).
- Display of order blocks (internal and swing).
- Display of fair value gaps (pre-filtered)
- Display EQ High Low
- Trailing Stop Loss
If you have any questions, please feel free to contact me
