QWAVAT Indicator

Analytical double crossover moving average

This indicator was developed when we were looking for market patterns during the huge period where volatility was low, and any signal of market movement is important. In this scenario, a very well adjusted moving average strategy is a great opportunity to find good entry points. QWAVAT combines exponential moving averages and ADX variation to look for inversion points. It has been working for Indices (ES, NQ) and Currencies (6E, 6B, 6C). It is very flexible for using with time frame and tick count data series. Most recommended set up is turn on the sound when you get a green or red arrow, meaning entry points for buy and sell or exit position or reversal.

Entry points

The red or green arrow represents entry points. Moving average crossovers produce relatively late signals. After all, the system employs two lagging indicators, that is the reason QWAVAT has fixed the lag, put the trigger right there.

Set up parameters

Set the “Perio” parameter which is the periods or bars back. Quant-Wise algos has been using numbers in the Fibonacci Sequence like 5, 8, 13, 21, 34. After thousands of hours running backtests, we found these number have a representative approach.

Working together

Combine with other indicators: QWAVAT indicator shows good entry points but it is always goof confirm the momemtun using other indicators like VolumeOscillator to see if there is a pressura from the right side. It is the best way to avoid false positive entry.