# ActionWave Action Wave is a macro trend filter designed to smooth out market noise and highlight the true direction of dominant price flows. It adapts to major trend movements and resists reacting to short-term volatility. {% embed url="" %} Provides a clear, smoothed curve to represent the macro trend. When potential shifts in trend are detected, yellow dots appear inside the wave — acting as early warnings of possible transitions.

{% hint style="info" %} Helps traders stay aligned with the broader direction and avoid whipsaws during uncertain periods. Perfect for identifying trend phases, filtering out false breakouts. {% endhint %} *** ### **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.

### **Yellow Momentum Circles** Inside the bands, a yellow circles appears to signal low price momentum and potential market shifts within a trend. This line reflects changes in momentum, giving traders an early indication of trend fatigue or potential reversals.

## How to use ### **Trend Continuation Entry** When the bands are green and trending upward without a yellow circles, it signals strong bullish momentum. Traders might look for entry opportunities aligned with this trend, expecting continued upward movement. Conversely, when the bands are purple and trending down without a yellow circles, traders can consider short entries in line with the downtrend.

### **Momentum Weakness & Exit Signal** If the yellow circles appears within the bands during an uptrend (green bands), it signals weakening upward momentum. 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.

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

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

{% hint style="info" %} ### Settings 1. **Toggle On/Off**: Enables or disables the ActionWave macro trend line on the chart. 2. **Color Settings** * **Green**: Uptrend color * **Purple**: Downtrend color * **Yellow**: Transition dots that appear when a possible trend shift is detected {% endhint %}