# ActionWave

<mark style="color:$info;">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.</mark>

{% embed url="<https://www.youtube.com/watch?index=4&list=PLoAyPcCp2RYEmAG9raeSB82jbk227Gx8W&v=qUrrB7nYTt4>" %}

<mark style="color:$info;">Provides a clear, smoothed curve to represent the macro trend.</mark>

<mark style="color:$info;">When potential shifts in trend are detected, yellow dots appear inside the wave — acting as early warnings of possible transitions.</mark>

<figure><img src="/files/Lno2qnnex2hGkA5ZSdGx" alt=""><figcaption><p>ActionWave in action</p></figcaption></figure>

{% hint style="info" %} <mark style="color:$info;">Helps traders stay aligned with the broader direction and avoid whipsaws during uncertain periods.</mark>

<mark style="color:$info;">Perfect for identifying trend phases, filtering out false breakouts.</mark>
{% endhint %}

***

### **Trend Visualization**

<mark style="color:$info;">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.</mark>

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

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

<mark style="color:$info;">Inside the bands, a yellow circles appears to signal low price momentum and potential market shifts within a trend.</mark>&#x20;

<mark style="color:$info;">This line reflects changes in momentum, giving traders an early indication of trend fatigue or potential reversals.</mark>

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

## How to use

### **Trend Continuation Entry**

<mark style="color:$info;">When the bands are green and trending upward without a yellow circles, it signals strong bullish momentum.</mark>&#x20;

<mark style="color:$info;">Traders might look for entry opportunities aligned with this trend, expecting continued upward movement.</mark>&#x20;

<mark style="color:$info;">Conversely, when the bands are purple and trending down without a yellow circles, traders can consider short entries in line with the downtrend.</mark>

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

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

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

<mark style="color:$info;">If the yellow circles appears within the bands during an uptrend (green bands), it signals weakening upward momentum.</mark>&#x20;

<mark style="color:$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.</mark>

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

<mark style="color:$info;">In a downtrend (purple bands), a yellow circles similarly warns of waning momentum, prompting traders to consider exiting short positions.</mark>

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

***

## Settings

<mark style="color:$info;">These settings let you control how the ActionWave displays trend direction and potential reversal points:</mark>

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

{% hint style="info" %}

### Settings

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


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