> For the complete documentation index, see [llms.txt](https://docs.bigbeluga.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.bigbeluga.com/main-toolkits/market-waves-pro-tm/actionwave.md).

# ActionWave

Action Wave is a macro trend filter designed to smooth out market noise and highlight the true direction of dominant price flows.

##

## **Trend Visualization**

ActionWave consists of two primary bands with color-coded signals. Green bands indicate an uptrend, while Purple bands indicate a downtrend, showing the direction of market momentum.

<figure><img src="/files/BGs3SAWYiEI9limlZrFf" alt=""><figcaption></figcaption></figure>

##

## **Yellow Momentum Circles**&#x20;

Inside the bands, a yellow circles appears to signal low price momentum and potential market shifts within a trend.&#x20;

<figure><img src="/files/oD6tGoZGnqOG5haJVTgi" alt=""><figcaption></figcaption></figure>

{% hint style="info" %}
This line reflects changes in momentum, giving traders an early indication of trend fatigue or potential reversals.
{% endhint %}

##

## How to use

### **Trend Continuation Entry**

When the bands are green and trending upward without a yellow circles, it signals strong bullish momentum.&#x20;

Traders might look for entry opportunities aligned with this trend, expecting continued upward movement.&#x20;

<figure><img src="/files/d14jOy2hQ38YklW6Bolf" alt=""><figcaption><p>Up Trend</p></figcaption></figure>

Conversely, when the bands are purple and trending down without a yellow circles, traders can consider short entries in line with the downtrend.

<figure><img src="/files/L9xJg5vRVMmET3aNcP1A" alt=""><figcaption><p>Down Trend</p></figcaption></figure>

### **Momentum Weakness & Exit Signal**

If the yellow circles appears within the bands during an uptrend, it signals weakening upward momentum.&#x20;

<figure><img src="/files/A1DIVfibCQO6WDBRdSkk" alt=""><figcaption><p>Up Trend Shift</p></figcaption></figure>

{% hint style="info" %}
This can serve as a caution signal for long positions, suggesting that it may be a good time to take profits or tighten stop losses.
{% endhint %}

In a downtrend, a yellow circles similarly warns of waning momentum, prompting traders to consider exiting short positions.

<figure><img src="/files/JRxIR1mfrVB3RA6VRfvD" alt=""><figcaption><p>Down Trend Shift</p></figcaption></figure>

##

## Settings

These settings let you control how the ActionWave displays trend direction and potential reversal points:

<div align="left" data-with-frame="true"><figure><img src="/files/13gokBrNmqFtpioVdiP4" alt=""><figcaption></figcaption></figure></div>

| Settings       | Description                                                                                                                                                                                                   |
| -------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| Toggle On/Off  | Enables or disables the ActionWave macro trend line on the chart.                                                                                                                                             |
| Color Settings | <ul><li><strong>Green</strong>: Uptrend color</li><li><strong>Purple</strong>: Downtrend color</li><li><strong>Yellow</strong>: Transition dots that appear when a possible trend shift is detected</li></ul> |