Copyright: All Contents Copyright © 2000-2006 Market Analytics


Welcome

Thank you for purchasing the Wave59 charting software! We appreciate your support, and are committed to providing the most technically advanced, yet user friendly trading software that money can buy. The purpose of this manual is to get you up and running with the program in as short a time as possible, while still providing enough explanations of features to ensure that you understand each tool and how to use it properly.

This manual is broken up into a number of major topics, each dealing with a subset of what this software is capable of. Please select one of the following items below, or browse the index menu of this help file to see all available topics.

To learn about cursors and the menu bar:

The Basics

Then learn how to set up a chart:

Setting up your data feed

Setting up your Time Zone

Charting

What is scaling?

After that, check out some of the tools available to you in the software:

Indicators

Drawing Tools

Astrology

Once you're familiar with those techniques, take a look at these tutorials that explain some the more advanced modules:

How to train a neural net

How to use the Pattern Builder to create your own Geometric chart patterns

How to use the Pattern Constructor to create custom Time and Price patterns

How to program your custom indicators with the Script Editor (Found in QScript Help File)

Got everything under your belt and ready to start trading? Turn on training mode and see how well you would have done before you risk real money:

Training Mode

Aside from the software features listed above, here are other topics that you may need to refer to from time to time:

Contact List

Passwords

Finally, if you've got your own website, you'll definitely want to take a look at this:

Associate Program

NOTE: This help file is best viewed with 32bit color enabled. In Windows2000, you can go Start - Settings - Control Panel - Display - Settings to change your color settings. (This path may be slightly different depending on your version of the Windows operating system.)


The Basics

Navigating around the program can be done in an easy and efficient manner. Everything has been designed to be done with a few clicks of the mouse, so you will only very rarely have to use the keyboard. To help make things easier, there are a number of different cursors that your mouse can become, each with a different task.

The two basic cursors available on a price chart are the Data Cross, and the Big Hand. You can toggle between them by executing a right click, then selecting the appropriate cursor from the pop-up menu. These two cursors look like this:

Data Cross: Use this to examine the price bars.

Big Hand: Use this to move the screen up and down.

Aside from those two cursors, the other main way of getting things done with this software is through the use of the menu bar. Click anywhere on the menu bar shown below to be taken to a description of that particular feature:


File Menu

The contents of this menu item may change depending on the current module selected. Generally, most of the items are self explanatory so there is no need to go into much detail. If you would like further information on a particular item, click on one of the choices below:

New Chart

New Ephemeris

New Square of Nine

New Quote Window

Printing

Saving a Chart

Opening a Chart

Server Setup

Time Zone


Format Menu

This menu item changes depending on what module (chart, square of nine, etc...) is currently selected as the top window. Click on one of the following choices for more details:

Formatting a Chart

Formatting an Ephemeris

Formatting a Square of Nine

Formatting a Quote Window


Options Menu

The options menu contains a number of useful chart formatting tools:

Paste in Ascii: Allows you to paste ASCII data into your chart.

Always Update Saved Charts to Current: When a saved chart is opened, it may not have the current day loaded in the database. If this option is checked, Wave59 will automatically add days to the chart to bring it current. If this option is not checked, Wave59 will ask whether or not to update the charts instead of just doing it by itself. That is handy if you wish to preserve certain research charts and don't want them updated.

Automatically Scroll Chart: If selected, Wave59 will automatically scroll the chart forward when price reaches the far right edge. This will ensure that the most recent data is always shown on screen.

Decimals: How many decimal places to display on the price scale. You may also set the scale to display fractions for instruments like US Treasury Bonds, which trade in 32nds.

Show Bar Countdown: When checked, the amount of time left until the next bar will be displayed in the lower right corner of the screen. This only applies to intraday charts.

Show Indicator Values: When checked, a box will be displayed in the upper left hand corner of the screen with the values of the various indicators you have added to the chart.

Show Data Values on Axis: When checked, the location of the Data Cross cursor will be shown on the price and time axis.

Bar Spacing: This allows you to increase and decrease the amount of space between bars on the chart.

Real Time Updating: When checked, the chart will update in real time. Uncheck this if you are displaying symbols that your data feed does not collect, or if you are doing research and don't need to drain CPU resources for updating purposes.

View Data Window: This will bring up the data window, which gives a detailed look at the indicators and values of a particular bar.

Zoom In: Clicking here will bring up magnifying glass cursor, which will allow you to zoom in on a particular section of the screen.

Refresh Bitmap: This will refresh and rescale the chart. Click this after you resize a chart. This feature may also be accessed from the menu bar.

Recalculate All: Completely rebuilds the chart and recalculates all indicators.

Set Pixel Dimensions: This will allow you to exactly specify the width and height of your chart. Useful if you are writing a newsletter or book and need all charts to be exactly the same size. Incidentally, if you are writing a book, click here for our policy on using Wave59 charts.

Screen Capture: This feature allows you to save a copy of the working screen in either PNG or JPG graphics formats.


Technical Menu

This menu contains all the technical indicators that ship with the software. All tools that fall under this category are based entirely on price action. Click on one of the indicators in the following list to see more detailed information.

9-5 Count

AccDist

Action Zones

Adaptive Moving Average (AMA)

Adaptive Zones

ADX

Aroon

Average

Bollinger Bands

CCI

CMO

DMI

Earik_TechnicalExpert

Exhaustion Bars 1

Exhaustion Bars 2

Fractal Trend Index

Gann Swings

Ichimoku Kinko Hyo

LeastSquaresValue

Line on Close

Lomb Periodogram

MACD

Overlay ASCII

Parabolic

PercentR

PFE

PointBands

Predict

Price_Channel

RSI

SAR_Dots

SavGolay

Simple Momentum

Slow K

Smart Money Index

SmartMoneyColorBars

Stochastics

Time Clusters

Trendlines

Ultra Smooth Momentum

Wave Tracker

Waverage

XAverage

Note: if your favorite indicator is not on this list, consider building it yourself using QScript. Alternatively, send email to wishlist@wave59.com and wait for it to be added to a future version of the software.


Astro Menu

This menu contains all of the astrological tools included with this software. Please click on an item below for more information about it:

Aspects

Bradley Siderograph

Declinations

Exchange Cycles

Flux Lines (Aspects)

Flux Lines (Planetary)

Moon Sign Change

Natal Forecast

Phase of Moon

Planet Cross

Planet Rise/Transit/Set

Planet Rise Harmonic Index

Planetary Speed Lines

SA/SR


Drawing Menu

This menu contains all of the drawing objects that can be applied to a chart. Please click on one of the items below for more detailed information:

ABC Targets

Action Reaction Lines

Andrew's Pitchfork

Arrow

Bar Counter

Balance Point Lines

Circles & Fans

Concentric Circles

Ellipse

Expansion Levels

Fib. Time Projections

Fibonacci Vortex

Floating Ellipse

Flower of Life

FOG

Fractal of Pi

Gann Fan

Gann Square

Horizontal Line

Logarithmic Spiral

Mirror Image Foldback

Price Counter

Price Percentages

Price/Time Counter

Price/Time Ratios

Pyrapoint

Rectangle

Regression Channel

Retracement Levels

Rings of Price/Time

Root 2 Growth Squares

Static Time Counts

Text

Time Accordion

Trendline

Trident

Vertical Line

Zoom

Related topics:

Create a Parallel

Show/Hide Drawing Tools

Using the shift key to display hotspots

Using the Drawing Object Inspector


Neural Menu

This menu item is the source of control for all the artificial intelligence tools in the software. For more details, click on an item below:

Build a New Net

Retrain a Net

Load a Saved Net

Format Active Nets


Scripts Menu

This menu item gives access to the scripting capabilities of the software. Please see the QScript Help file for more information.


Patterns Menu

This menu gives access to modules that you may use to construct and display custom geometric or time/price patterns. Geometric patterns refer to specific shapes, as would be drawn on a clear sheet of plastic and held over the price chart. Time and Price patterns refer to pattern relationships found in price itself. Head and Shoulders, Triangles, and Elliot Waves are all Time and Price patterns.

For more details, click on one of the following items:

Geometric Patterns:

Pattern Builder

Set Growth Factor

Load a Pattern

View Pattern/Price Correlation

Time and Price Patterns:

Pattern Constructor

Load a T&P Pattern


Window Menu

This menu item governs how the child windows (like charts) are arranged. It also allows you to show and hide the menu bar, useful if you need that extra half inch of screen space. All open charts will be displayed at the bottom of this menu, so moving to another chart is simply a matter of selecting it from the list and clicking.


Help Menu

If you're reading these pages, you've successfully been able to locate the help menu! The most important item on this menu besides the link to these help files is the "Contact Support" link, which will allow you to obtain tech support for any issues that you are unable to solve using this help file.


Creating a Chart

Creating a new chart is easy. Simply click File - New - Chart to be taken to the setup screen which will guide you through the process of creating a chart.


Creating an Ephemeris

Creating a new ephemeris, or planetary wheel, is easy. Simply click File - New - Ephemeris to be taken to the setup screen which will guide you through the process.


Creating a Square of Nine

Creating a Square of Nine is easy. Simply click File - New - Square of Nine to be taken to the setup screen which will guide you through the rest of the process.


Creating a Quote Window

Creating a new Quote Window is easy. Simply click File - New - Quote Window to bring up a blank window. From there, all you have to do is type your symbols into the "Symbol" field and hit the Return key to activate the row. If you don't hit the return key, all the other fields will remain as question marks until you do.

To delete a row, click on the "Symbol" field for that row and hit the Delete key.


Opening a Chart

Opening a saved chart is very simple. Simply click File - Open Chart. You will be prompted with a list of all saved charts. Select the chart you wish to open from this list.


Saving a Chart

You may save any chart you are working on for later access. All chart settings, indicators, scripts, drawing objects, and neural nets will also be saved.

To save a chart, click File - Save Chart. You will be prompted for a name, which you need to enter, and your chart will be saved. Now your chart is just a few clicks away.

Alternatively, you may also save groups of charts by clicking File - Save Chart Group. This feature saves all open charts at once together under a single name. When you reopen the group by clicking File - Open Chart Group, all charts will be opened together.


Printing

Most modules in Wave59 can be printed. It is just a matter of clicking File - Print, or hitting the printer icon on the menubar.

Note that chart scaling is preserved when price data is printed. This means that charts may not occupy the entire piece of paper they are printed on.


Refreshing the Screen

Due to the way this software treats scaling a price chart, it will not automatically refresh the screen after you resize the window. You must explicitly tell the software to redraw and rescale the chart after you have done this. There are three ways to do this:

1. Click the resize icon in the menu bar

2. Type Ctrl-R

3. Click Options - Refresh Bitmap


Adjusting a Drawing Object

All drawing objects can be adjusted with this cursor. Since each drawing object is different, the effects of adjusting them also vary quite widely. You must select this cursor, click on the hotspot for the particular drawing object, then move the indicator.

For example, apply a trendline to the chart by clicking Drawing - Trendline. A pencil will appear that you can use to set up your trendline. Now, once the trendline is drawn, click the pointing hand cursor on the menu bar to change cursors. Notice that you can use this tool to reposition the ends of the trendlines.


Deleting a Drawing Object

There are two ways to delete a drawing object:

1) Individually

Simply click the garbage can icon on the menu bar to engage the garbage can cursor:

Then click on the hotspot of individual drawing objects to delete them.

2) Batch delete

If you have a lot of drawing objects applied to your chart, sometimes it is easier to do a batch delete, where all instances of a particular drawing object are erased at once. Simply click Delete - Delete All... from an open chart to bring up the following window:

There are two list boxes in the form above. The first list contains all the tools that have been applied to the chart. If we want to delete all of a particular kind of tool, we need to move it from the first list to the second list. All drawing tools in the second list box will be deleted from the chart once we click OK. In the example above, we've selected to delete every text object that has been applied. Use the ">>" and "<<" buttons to move tools back and forth between the lists, or simply highlight them and double-click.


Formatting a Drawing Object

The attributes of each drawing object can be formatted with the wrench cursor:

Simply click on the wrench icon on the menu bar to engage this cursor on the active chart. When you click on the hotspot of a drawing object with the wrench, a customized settings screen will appear that you can use to modify the particular drawing object.

Each setup window is a little different. Some contain only color grids to alter the color of the object, while others contain many parameters that govern the way a particular object is plotted. For more information about a particular drawing tool, please visit the Drawing Menu page.


Moving a Drawing Object

All drawing objects can be repositioned on the screen with a simple drag and drop interface. You need to engage the tow truck cursor for this task:

This cursor can be enabled by clicking on the tow truck icon on the menu bar.

To move a drawing object, simply click on its hotspot with this cursor and drag it to the desired position on the screen.


Active Indicator Box

The active indicator box lists all indicators currently applied to the chart that may be moved using the indicator cursors. There are two indicator cursors:

The magnet cursor

The double arrow cursor


Moving an Indicator

Any indicator with parameters like "Plot High %" or "Plot Low %" can be moved up and down on the screen just like drawing objects. This can be done either by changing the plot parameters by clicking Format-Indicators, which gives exact positioning capabilities, or with the magnet cursor:

To reposition an indicator with the magnet cursor, first highlight it in the drop down Active Indicator Box on the menu bar. If an indicator is not shown in this box, it cannot be moved. Then, select the magnet cursor by clicking on the magnet icon on the menu bar. Now simply click and drag anywhere on the screen to move the selected indicator up and down.


Adjusting an Indicator

The settings of an indicator can be changed through Format-Indicators-Settings by using the dialog box:

Simply select the parameter you wish to change, then enter it's new value in the edit control. Notice that a type setting is displayed. Certain parameters require certain kinds of inputs, like "on"/"off" or a number. You must enter the correct type of parameter to successfully change a value.

Another way to quickly adjust the scaling of a particular indicator is by using the double arrow cursor:

Find the indicator to be adjusted in the active indicator box, select it, then choose the double arrow cursor. Now click anywhere on the chart and drag. Clicking above the selected indicator will adjust the top scaling, and selecting below the indicator will adjust the bottom scaling. When through, do a left click to return to one of the basic cursors.


Time Zone

It is very important to correctly set up the time zone offset for your particular data feed. Many of the astrological methods need to know exactly what time it is in GMT, and use this time zone offset as part of their calculations. In addition, this setting is used to make sure your data feed and chart are interacting correctly. Fortunately, this process is very simple and only has to be done once.

To find the correct number, simply enter the number of hours difference between Eastern Time (New York) and the time zone on your computer clock. For example, Chicago is one hour behind New York, so if you are a trader in Chicago, you would enter a "1" in the box. If you live in Europe, you would enter a negative number, since you are ahead of New York. For reference purposes, New York is 5 hours behind Greenwich.

Some typical settings are shown below:

Eastern Time Zone: 0

Central Time Zone: 1

Mountain Time Zone: 2

Pacific Time Zone: 3

Germany: -6


Formatting a Chart

Format a chart by clicking Format-Chart when a chart is the active window. A setup screen will appear with four different tabs to choose from at the top.Clicking these will allow you to easily toggle between different kinds of settings. We will discuss them all here.

Chart Type:

This will allow you to specify your data source and whether you want to build an intraday or daily chart. If Online is checked, the data will come from the data feed specified when you set up the program. If you are working with Ascii or Metastock data, please click here for more information about using those formats.

Symbol:

This allows you to set up all parameters relating to the symbol you are charting.

Chart Symbol: The symbol currently being charted. These vary by data feed, so check with your data provider if you have trouble locating a symbol. They are usually in a form like SP0Z, or MSFT. Quote.com requires futures to be in the form "ESH7". In contrast, eSignal would need "ES H7", and IQFeed would need "@ESH7".

Start Time: This allows you to explicitly set the starting time for your chart. This will vary by symbol and time zone. For a 24 hour market, set this value to 0.

End Time: Same as Start Time, but determines when to stop charting data for a given day. For a 24 hour market, set this value to 2359.

Time Frame: Determines how many minutes fit into each bar on the chart. If you are on a longer term chart, as the one shown here, you can select between trading days, calendar days, n-day charts, weekly charts, and monthly charts. For more information on these time frames, please read the information further down on this page.

Num. Days Visible/Show # Years: Sets how many days/years are shown on screen. Fractional days can be used if the chart seems too cramped.

Chart Type: Select between OHLC bars, Candle Sticks, and Line-on-Close charts.

Automatic Scaling: This will draw your chart so that the highest price seen is at the very top and the lowest at the bottom. Useless for pattern matching, but ok if you are doing pure indicator trading.

Manual Scaling: Allows you to enter the high and low for the chart yourself.

Square Scaling: Recommended scaling type. This will draw price as if on a perfect square with so many price units for given time periods. There are two input boxes so you may set multiples of a particular harmonic number. For example, the SP runs well on multiples of 12 points per day, so you can enter a 12 in the first box and some whole multiple (like 3) in the second. You may set the scaling up as points per bar, hour, or day.

Database:

This builds the price database that your chart will be aware of. Not all of these days will necessarily be shown at the same time, but all of them will be available for scrolling. Just double click on a day to add it to the list at the right. To speed things up, you can also click and hold to select a range of days. Use the two buttons to remove individual days from the database, or to clear the entire list.

N-Day/Weekly/Monthly:

Wave59 has the ability to create N-Day charts, which represent bars that are made up of more than just a single day. A 2-day chart would be one where each bar was two days long, and a 3-day chart would be one where each bar was three days long. After selecting an N-Day chart in the symbol page, you will need to visit this tab to verify your settings.

Number of Bars per Day: This determines how many days are contained in each bar on the chart. A standard weekly chart will contain 5 days, not including weekends.

Weekly Charts: Click this button to quickly set up a standard weekly chart. A standard weekly chart contains 5 days per bar, excludes weekends, and each bar begins on Monday.

First Bar on Chart should begin on: This setting lets you customize how your bars are built. Most weekly charts begin on Monday and run through Friday, but if desired, you could do a Wednesday-Tuesday weekly chart by changing the setting here.

Weekends: This box allows you to include or exclude weekends from your bars. If weekends are selected, Saturday and Sunday will be used  when building the N-day bars.

Monthly Start Day: This box is for monthly charts, and determines on what day of the month each new bar should begin. 1 is the default value, and will result in typical monthly charts.

Color:

This tab allows you to specify the colors for various chart parameters. To change a color, simply click an item from the list at the right, then select the new color from the grid at the left. The colored text at the center of the page should update to reflect your selection.

Grid:

This page allows you to change the way the price grid is drawn on the chart.

Equal Chart Divisions: When selected, the price grid will be split into the specified number of equal pieces  for labeling purposes. This is the quick and easy setting.

Fixed Increments: This will plot a price label every "Increment By" points starting from the "Base" price. So to plot a new price value every 5 points, set Increment By to 5 and Base to 0. This allows complete control over the price axis.

Show Session Breaks: When selected, a dashed line will be drawn between different days on the price chart.

Price Bar Thickness: This setting controls how thick each price bar is, in screen pixels. If it's hard to see the bars on your chart, or if there are wide gaps between each bar on the chart, consider increasing this number.

Sessions:

This page allows you to define certain times that should not be shown on the chart. You may enter as many rules as you like, and when Wave59 builds your chart, none of the times set up will appear. This is helpful for traders watching markets such as Forex, where the market is open 24 hours a day but closed on Sunday.

Holidays:

This page allows you to define holidays. Holidays will not be shown on charts set up to plot trading days only. All holidays known to Wave59 will be displayed in the list at the right. To add a new holiday to the click, click the Add a Date to the Holiday List button. To remove a holiday from the list, select the date you wish to remove, and then click the Remove Selected Date from Holiday List button. If you wish to disable holiday filtering from the current chart, simply uncheck the box marked Enable Holiday Filtering. All holidays are stored in a file called holidays.txt, which can be found in the Wave59 installation directory. This file may be edited by hand in order to change the holidays Wave59 will work off of.


Formatting an Ephemeris

Selecting Format while an Ephemeris is the current active window will bring up the following screen:

Date to Use: This is the date and time for which the ephemeris will calculate planetary positions. Note that this date should be set in local time. Make sure you have properly set up the Time Zone parameter before running this module.

Update in Real Time: If checked, the ephemeris will automatically update at a user defined rate throughout the day. This rate is set through the "Refresh" menu selection.

Natal Dots: When "Show" is selected, various colored dots will appear around the Ephemeris to denote planetary positions at the specified natal date (for markets, use date of first trade). Transits of these points by the appropriate exchange can often signal turning points in the market. Click here for a list of first trade dates. You can store dates that you frequently use for analysis by clicking on the Date Manager button.

Price Overlay: This will draw a price wheel around the outside of the ephemeris. The wheel will begin counting at "Start Price", which will be located at "Start Degree". "Divisions" determines the number of price units in the wheel, and "Step Size" will govern how much each division will be incremented as we move around the wheel.

Link with Sun: If checked, this will link the price wheel to the current position of the Sun. This means that the wheel will begin wherever the Sun is, rather than at the fixed "Start Degree" setting. This is an experimental feature, but has given some interesting results in testing.

Coordinate System: Switches between ecliptic (longitude and latitude) coordinates and equatorial (right ascension and declination). Note that right ascension is converted to 360 degrees.

Plot Options: Dot Width and Line Width control the thickness of the natal dots, progressed dots, and planetary lines.

Planet Labels: If selected, each planet will be labeled with a letter or symbol. To see what body each letter stands for, click here.

Special: This group of settings allows various other objects to be plotted on the ephemeris chart. Among them are the Part of Fortune (Fortuna), the Vertex, the asteroid Chiron, the Exchange (and Ascendant at the Exchange - the red triangle), the East Point (or "Equatorial Ascendant"), the RD, and the current price of a selected symbol.

Plot Properties: This sets the diameter of the price wheel. Units are screen pixels.

Rulership: If selected, a crown will appear next to the current ruling planet. The rulership table is fully customizable, so you may set it up according to your own preferences.

Orientation: This sets whether we are looking at geocentric positions (Earth centered) or heliocentric positions (Sun centered).

Zodiacal System: This sets the zodiacal system under which the ephemeris will operate.

Progressions: These are simply the positions of the planets at birth (natal), moved forward at a rate governed by a particular body. Then aspects and transits between the progressed and natal planets are used to create forecasts. Wave59 can progress planets using two techniques. Linked Natal simply takes the natal pattern, and links it to a particular planet. This planet is usually the Sun, but for intraday work can be set to the midheaven or ascendant for faster progressions. Day for a year is also known as secondary progressions, and move at the rate of a day for a year. So the progressed planets after one year's time would be equivalent to what was happening in the sky one day after birth (first trade). Progressed planets after 10 years would correspond to what was happening in the sky 10 days after birth, etc.


Formatting a Square of Nine

From the Square of Nine, click format to display the following set up dialog:

Properties Group:

Layers: This determines how many spirals the software should include in the chart. If the current price of your security is higher than the largest number on the chart, you need to increase the layers setting.

Ring Width: The width of each ring on the square, in screen pixels.

Center Number: The number at the center of the chart.

Count Forward: If this setting is checked, each number will be larger than the last. If unchecked, the numbers will count down instead.

Number of Sides Group:

This section determines how many sides the numbered square will have. If Square of Nine is checked, a standard Square of Nine chart will be displayed. Otherwise, the number will govern what kind of shape is used. An entry of 6 would create a hexagon chart, while an entry of 8 would create an octagon.

Zodiacal System:

This option governs the planetary lines and dots. If Tropical is checked, the degree values of the planets will correspond with the tropical (western) system. If Sidereal is checked, the degree values will correspond with the sidereal (eastern) system. If Use Equatorial is checked, equatorial coordinates will be used instead. Equatorial coordinates are returned in Right Ascension and Declination, instead of Longitude and Latitude. They will be similar to tropical as they have been converted to degrees, but a little different. Click here for more on zodiacal systems.

Orientation Group:

This option governs the planetary lines and dots. If Geocentric is checked, the values of the planets will refer to Earth-centered values, while Heliocentric will result in Sun-centered values. If Use Equatorial is selected, the equatorial degree values will be used (right ascension), otherwise ecliptic values will be used (longitude).

Date Group:

Sets the date and time that the planetary values will be calculated for. Check Update in Real Time for the values to remain current to the minute. If real time updating is not checked, users can move the date forward or backward using the "+" and "2" keys (forward in time), or "-" and "1" keys (backward in time). The rate at which the date moves is controlled by the Manual Motion option found in the main menu.

Planets Group:

Wave59 has the ability to plot planetary positions directly on the Numbered Square. This group of controls determines which planets are shown and how they should be updated. Each planet will be shown by a dot or a line of the appropriate color. The exchange is shown by a red square, the ascendant is shown by a gold triangle, and the vertex is shown by a blue triangle.

Show Planet Dots: If checked, Wave59 will plot all planets on top of the chart. The degree value of the planets will be taken and plotted at their corresponding number on the chart as a dot. Note that this option must be turned on to be able to use the Geometry menu item.

Show RD Dot: If checked, Wave59 will plot the degree value of the RD as a black triangle on the chart.

Show Planet Lines: If checked, Wave59 will plot all planets on top of the chart. Like the ephemeris, the planets will be drawn at their degree locations, with 0 degrees being the far right of the chart, 90 degrees being straight up, 180 being straight left, 270 being straight down, and 360 being straight to the right. This can be altered by changing the Start Deg value field found below. This field will change the degree value that is directly to the right.

If Floating is checked, the lines will originate at the degree value of the planet on the chart (as with the dots) rather than the center of the chart. Float Opp. will plot the oppositions to the lines (a line moving in the opposite direction), and they will also originate at the degree value on the chart rather than the center.

If Move Counter Clockwise is checked, the degree values will increase in a counter clockwise fashion as described above. If it is unchecked, 90 degrees will be down and 270 will be up.

Exchange Group:

These settings determine how the midheaven, ascendant, and vertex are plotted. Each of them has a checkbox for turning off the dot and the line. If plotted as lines, they will be dotted. If plotted as dots, they will have the following shapes:

Midheaven = Red Square

Ascendant = Gold Triangle

Vertex = Blue Triangle

The location box specifies what geographical location these three values are derived from. New York and Chicago are entered already, but users may enter custom latitude and longitude settings by clicking on the "Add an Xchg" button.

Date Ring Group:

These settings control a date ring that can be plotted around the chart. The date ring can represent one year, 24 hours, or both. The location of March 21 or 6:00AM can be set to any degree. WD Gann always had this at 0 degrees on his charts, so that is the current default.

Progressed Moon Group:

Wave59 can plot the location of the secondary progressed moon on the chart. It will show up as a yellow dot with a black border. Progressions require a starting date, which can be entered here. Each market will have it's own first trade date.

Planetary Clock Group:

This is a technique of Dan Ferrera's, where the motion of the planets from a starting date get transferred to a numbered square. The heliocentric distance travelled from the first date to the current date is computed, then used to determine the location of the current planet. He has found many interesting relationships in markets and history using this technique, and interested traders are encouraged to take a look at his Square of Nine book which details this technique. www.sacredscience.com distributes his material, so check with them if you are interested.

Font Group:

These settings control the font size used on the chart.


Calculate SQ9 Aspects

Wave59 contains an aspect calculator that can calculate when various planetary dots on the numbered square form aspects with other dots. This calculator can be launched by setting up a square of nine chart, and then clicking Calculate on the main menu. That will bring up the following form:

This form will set up the search engine to look for all aspects of a particular type. The main planet section determines which planet Wave59 will compute aspects for. In the example above, it is set to look for aspects to the Moon.

The harmonic setting determines what kind of aspects to look for. To get the degree value of a particular harmonic, simply divide 360 by that harmonic. So the 16th harmonic would look for all aspects that were a multiple of 22.5 degrees.

Precision governs how fast Wave59 will step through the search. A precision of 1 minute is the highest resolution allowed, and is recommended unless the search covers a very wide span of time.

The Dates fields govern the start and stop times for the search. All aspects between the two date settings will be recorded.

All aspects will be measured from the degree value as shown on the numbered square itself to either other degree values on the square (dots), or line values (true degrees drawn on the circle). For more information on the difference between dots and lines, read this topic.


Formatting a Quote Window

Selecting Format - Quote Fields from a Quote Window will bring up the following screen:

To enable these fields on the current Quote Window, check the boxes. To disable the fields, uncheck the boxes.


Planet Labels

Since many traders do not feel like learning the symbols for all planets, the following alternative labeling system was adopted from the work of Al Larson. Wave59 can plot both these letters and symbols on the ephemeris chart.

M = Mercury

V = Venus

H = Sun

R = Mars

J = Jupiter

S = Saturn

U = Uranus

N = Neptune

P = Pluto

T = Moon

O = Moon's North Node

C = Chiron

X = Exchange

A = Ascendant

$ = Current Price


Planet Colors

The colors of the planets on the ephemeris and numbered squares modules follow a particular mapping, which is as follows:

Blue = Mercury

Green = Venus

Red = Sun

Maroon = Mars

Fuchsia = Jupiter

Purple = Saturn

Aqua = Uranus

Teal = Neptune

Gray = Pluto

Black = Moon's Node

Olive = Moon (or Yellow)


Planetary Rulership

The Ephemeris has the ability to plot a crown next to the current ruling planet as determined by which zodiac position the sun is currently in. These rulership settings are fully customizable. From the Ephemeris, select Format - (Rulership) Edit. The following screen will appear:

To change the rulership of a given sign, simply change the index value in the edit box next to it. The index values are as follows:

Mercury = 0

Venus = 1

Sun = 2

Mars = 3

Jupiter = 4

Saturn = 5

Uranus = 6

Neptune = 7

Pluto = 8

Moon = 9

North Node = 10

Chiron = 11

You may restore the system defaults at any time by clicking the "Restore Defaults" button. The software will remember any changes made to this table, so dealing with this dialog box should be an infrequent experience.


Pasting in ASCII data
Pasting in ASCII/GenTick data

You may paste data from ASCII files directly into the Wave59 software program. This is useful if you have a gap in your data and would like to fill it in, or if you have received a file from a friend and would like to chart it. The software allows you to define how your format is set up on the fly, so it can read in nearly any style ASCII file. However, it is recommended to use files based on 1 minute bar data if possible.

To paste in some ASCII or GenTick data, first set up your chart as usual. Then click "Options - Paste in data from file". A wizard will be brought up that will lead you through the pasting process.

Once you have located your file, the following screen will allow you to select the appropriate file settings:

The top window displays a portion of the selected file to help aid you in your choices. Each column of data that Wave59 has detected is represented by the boxes below. You must tell Wave59 what kind of data each box represents, using the drop-down labels underneath each box. The possibilities are: Date, Year, Month, Day, Time, Open, High, Low, Close, Volume, and OpenInt.

Date would represent a compounded year/month/day value rather than separate entries. For example, "20041231" could be used to represent December 31, 2004. If you have a date field similar to this, label it as "Date". Otherwise, label each individual field accordingly.

Wave59 will remember your settings and will store them for future use. If you have already defined a particular data type, simply select it from the recently used formats drop-down box in the middle of the form. This action will automatically label each field accordingly.

You must then select the appropriate field order from the choices below, and may elect to ignore the first line of the data file if it contains identifiers or garbage values. Next you need to specify how the file is delimited, either by spaces or by commas.

Finally, you have the option of adding hours to the data file to get it in line with your time zone. So if you have a data file that displays a forecast for the S&P using Eastern Time, but your computer is set on Mountain Time, you can enter a "-2" into this box and have the forecast plot properly. It will just subtract two hours from the file time when deciding where to place each data point.

Note: If you are pasting into a blank chart, you will probably need to refresh the screen after done pasting to reset the price scale.


Publishing Wave59 Charts

If you are writing a book, newsletter, or web page and would like to include Wave59 charts, you may do so under the following conditions:

1. If discussing any of the Wave59 indicators, due credit must be given to us for having developed these tools. Although there is no problem displaying the 9-5 Count (for example) in one of your analyses, there is a problem if you claim to have invented this indicator yourself.

2. You must include our contact info for interested parties. This is really up to you how you work this in, but a simple "Charts have been created with Wave59 RT - www.wave59.com" at the bottom of the page should be sufficient.

If in doubt, contact us! We like to see our charts appearing in other people's published works - it means we have been successful in creating good software. If you contact us about one of your publishing projects, we might even be able to provide you with supplemental research results, so don't be shy!


Contacts

If you need to contact us, please use the following channels. All of these email addresses are also available in the contacts section of your member page at www.wave59.com.

If you have found a bug in the software and need to report it: bugs@wave59.com  Before reporting a bug, please visit www.wave59.com/support.asp and see if this page can help you resolve the issue.

If you have an idea how to make the software better: (new features, tools, etc.) wishlist@wave59.com

Any kind of technical support question: support@wave59.com

Any kind of question about your account: (registration, billing, etc.) sales@wave59.com

These questions may also be answered by one of our operators. Hours are 9:30-4:30 Mountain Time (11:30-6:30 Eastern).

1-866-494-7613 (toll-free inside the US)

1-303-494-7613 (outside the US)

Anything concerning the website: webmaster@wave59.com

Business propositions, major add-in requests, or if you just need to go to the top! earik@wave59.com


9-5 Count

The 9-5 Count is a method of following price based cycles in the market. The reason it is called the 9-5 count (besides being useful throughout the trading day) is that the pattern it tracks consists of cycles of 9 setup bars and 5 blow-off bars.

Signals:

Setup signals occur when the count reaches 9 in either direction. So a blue nine below price is a go long indication, and a red nine above price is a go short indication.

Blow-off signals occur during extended moves and are a little rarer then the regular "9" signals. A trading signal occurs in this case on a gold "5" in either direction.

A chart should make all of this much clearer:

8* and 4*:

In addition to the basic 9-5 signals, sometimes a cycle may complete one bar earlier. If you see a red or blue "8*"  (the asterisk is the important thing), you may consider this to be the same strength as a red or blue "9". The same goes for a gold "4*" in the place of a "5".

Failure Breakout Levels:

This is a supplemental study based on the 9-5 count. These zones act as buy and sell levels if price can break through them. This is actually a relatively rare occurrence, but it pays to keep an eye on these areas.

Parameters:

Show Full Count: (on/off) When selected, the entire count is displayed rather than just the signal bars.

Add Pixels: (integer) Specifies how many pixels to pad the numbers with to keep them away from interfering with the price chart.

Show Failure Breakout Levels: (on/off) This determines whether or not failure breakout levels are shown.

Display 8*/4* using Parenthesis: (on/off) If it's hard to see the asterisks by the special "8*" and "4*" signals, turn this on to get "(8)" and "(4)" instead.

Click here to learn where 9 and 5 came from.


Formatting an Indicator

From an active chart, clicking Format-Indicators will bring up the following window:

You may use this window to change the parameters of any of the indicators added to the chart. Simply select the indicator you wish to format and use the buttons at the right:

Close: Closes this screen and returns to charting.

Delete: Deletes the indicator and erases it from the chart.

Change Settings: Allows you to change the value of the parameters for this indicator.

Change Colors: Allows you to change the colors for the plots of this indicator.


Changing Indicator Colors

You may change the plot colors of any indicator. To do this, select Format-Indicators-Change Colors from an active chart. The following screen will appear:

Simply highlight the plot you wish to change in the box at the left. In this picture we have selected "Zone 1". Notice that the current color of this plot is shown in the box surrounding the text "Current Color" at the bottom. Select a new color from the grid at the right, click "Set It", and notice that the "Current Color" box updates to reflect the new color of this plot.


Input Types

There are four types of inputs that an indicator may accept when changing its parameter values from the "Change Indicator Settings" screen.

Int: Only whole numbers, like -1, 0, 1, 2, 3, etc...

Float: Whole or fractional numbers. 1, 2.5, -0.5674 are all acceptable.

OnOff: Only "on" or "off".

Fixed: Any input with a fixed type cannot be changed.


Action Zones

Action zones are support and resistance levels determined by the previous day's price action. Many floor traders use zones to help them find good areas to take trades during the day. These Action Zones are more accurate than the publicly available formulas, and often pinpoint important price levels at which the market will form a turning point.

Note: Action zones require at least two days of data in your database to work.

Parameters:

Plot Width: (int) Determines how thick the lines should be.


Adaptive Moving Average

This is our own version of the popular moving average study. It is adaptive because it uses its own error modify its behavior and alter the speed at which it follows the market. The result is that this average is extremely responsive to price changes, yet remains very smooth, even when following the most violent price swings.

Parameters:

Length: (int) Specifies the number of bars the average should use in it's calculations. Larger numbers will result in a smoother, more lagging indicator.

Weight 1: (float) The three weight settings determine the way in which the average's error is fed back into the calculation. Since this is done three different times, three different weights are necessary. The optimal weight settings are far from clear, so a little experimentation here might result in a better average.

Weight 2: (float) See above.

Weight 3: (float) See above.


Exhaustion Bars 1

This is the first of two exhaustion bar studies offered in Wave59. These are entirely pattern based indicators, which have the advantage of minimizing "indicator overload" situations where an indicator remains overbought or oversold throughout an entire price move. A red dot above price is a short signal, and a blue dot below price is a long signal.

Parameters:

Qual: (int) Determines the length of a smaller trigger pattern. Shorter values give more signals, but with less accuracy. Longer values give fewer signals but with more accuracy.

Length: (int) Similar to "Qual", but it governs a longer length setup pattern. An exhaustion bar is triggered only when both patterns coincide with each other.

Pixel Add: (int) Determines the distance between the signal dots and the price bars. If your screen is getting cluttered, you may wish to increase this value.

Dot Width: (int) Determines how big of a dot to plot.


Exhaustion Bars 2

This is the second of two exhaustion bar studies offered in Wave59. These are entirely pattern based indicators, which have the advantage of minimizing "indicator overload" situations where an indicator remains overbought or oversold throughout an entire price move. A red dot above price is a short signal, and a blue dot below price is a long signal. This exhaustion pattern works best on 1 minute charts to find scalping situations.

Parameters:

Qual: (int) Determines the length of the pattern the indicator will search for. Shorter values give more signals, but with less accuracy. Longer values give fewer signals but with more accuracy.

Pixel Add: (int) Determines the distance between the signal dots and the price bars. If your screen is getting cluttered, you may wish to increase this value.

Dot Width: (int) Determines how big of a dot to plot.


Fractal Trend Index

This is a very responsive index that measures the current strength of the trend. It has been designed to replace the more widely known ADX indicator developed by Welles Wilder. High values indicate a strong trend, and low values indicate a weak trend. Increasing values mean that the trend is gaining strength, and decreasing values indicate that the trend is losing strength.

Trading tips:

One good way to use this tool is as an indicator to determine when a particular trending period has completed. Wait for the indicator to reach high levels and then flatten off. This is generally a good time to look to fade the recent move, given confirmation from other indicators.

Parameters:

Price: Determines what data value to calculate the indicator on. Default is the close.

Depth: Determines the smoothness/lag of the indicator. Higher values will result in a smoother but higher lag indicator.

Color: Plot color.

Thickness: Plot thickness.


Line on Close

This indicator simply draws a line connecting all the closes on the chart. This can be useful if you have spotty data.


Lomb Periodogram

This indicator displays the phase of the current dominant cycle as calculated using Lomb's Periodogram. This indicator has two components, the actual phase calculation, which acts similar to an overbought/oversold indicator like Stochastics or RSI, and a probability calculation that measures how close to random noise the signal appears to be.

Trading:

Expect cycle lows to form when the red phase line is below -0.65 and expect cycle highs to form when the phase is above 0.65. Be very cautious when the green histogram starts acting up - it means that the software is having some trouble seeing the cycles clearly.

Parameters:

Price: The price to use when computing the value of the Lomb Periodogram.

Length: The number of bars to use when calculating the dominant cycle.

Oversample: Internal parameter for the Periodogram.

Thresh:  Where to draw the first overbought/oversold level. The second level will be this number times -1.

Smooth:  This parameter allows you to run a moving average across the Periodogram to tamp down noise. The default value of 1 returns the raw, un-smoothed value. Other numbers will result in the moving average filter being applied to the indicator. A value of 5, for example, would correspond to applying a five period moving average across the output of the Periodogram.

Lomb_Color: (color) The color of the lomb phase trigger line.

Thresh_Color: (color) The color of the overbought/oversold threshold levels.

Prob_Color: (color) The color of the randomness histogram.


Overlay ASCII

This will allow you to overlay ASCII data on the chart. The software accepts a variety of formats (contact us if you would like to see yours added) but requires that the data be 1 minute bars.

Loading a file:

Once you have located your file, the following screen will allow you to select the appropriate file settings:

The top window displays a portion of the selected file to help aid you in your choices. You must then select the appropriate field order from the choices below, and may elect to ignore the first line of the data file if it contains identifiers or garbage values. Next you need to specify how the file is delimited, either by spaces or by commas.

Finally, you have the option of adding hours to the data file to get it in line with your time zone. So if you have a data file that displays a forecast for the S&P using Eastern Time, but your data feed is running on Mountain Time, you can enter a "-2" into this box and have the forecast plot properly. It will just subtract two hours from the file time when deciding where to place each data point.

Parameters:

Plot High %: (float) Determines where the highest value of the indicator should be plotted in relation to the screen.

Plot Low %: (float) Determines where the lowest value of the indicator should be plotted in relation to the screen.

Shift: (int) This will shift the overlay from side to side by the specified number of bars. Positive values shift the overlay to the right, and negative values shift the overlay to the left.

Invert: (OnOff) If turned on, the overlay will be flipped upside-down.


PointBands

This indicator will plot a band above and below price data. The top band is calculated by adding a certain number of points to the low of the bar, and the low band is calculated by subtracting a certain number of points from the high of the bar. This study was meant primarily as an aid to moving a trailing stop.

Parameters:

Points: Determines how many points are added/subtracted from the low/high to obtain the band value.

Color: Sets the color of the bands.

Thickness: Sets band plot thickness.

Style: Determines style of the bands. Dashed and dotted styles require a thickness setting of 1. See QScript help for a list of style settings. ps_solid is the default solid line.


Simple Momentum

This is the simple momentum calculation found in nearly all trading programs. It is calculated by subtracting a close X bars ago from the current close. Our Ultra Smooth Momentum curve outperforms this indicator in nearly all ways, so unless you have a definite use for this calculation, we recommend using that one instead.

Parameters:

Length: (int) Determines "X" in the equation: momentum = close - close of X bars ago.

PlotHigh%: (float) Determines where the highest value of the indicator should be plotted in relation to the screen.

PlotLow%: (float) Determines where the lowest value of the indicator should be plotted in relation to the screen.


Ultra Smooth Momentum

This is our own proprietary momentum curve. It is just as responsive to price movement as the basic simple momentum curve, but is extremely smooth. The benefit of this smoothness is that many of the noise-based false signals in simple momentum are eliminated here.

Trading tips:

There are two ways to use this indicator. The first is as a trend detector: going long when momentum is above zero, and going short when below. The second (and recommended) is to use this to locate divergence signals.

Divergence occurs when the market and momentum move opposite directions from each other. So bearish divergence would be higher highs in the market but lower highs in momentum. Bullish divergence is lower lows in the market and higher lows in momentum. These divergences almost always resolve themselves in the direction of momentum, so it can be very profitable to watch for these kinds of situations. Below is a chart demonstrating this technique.

Parameters:

Length: (int) How many bars momentum should be measured across. Shorter values will result in a more jittery curve.

Smooth: (int) A second smoothing factor in addition to the built-in method. Only a small number like 4 is needed here.

PlotHigh%: (float) Determines where the highest value of the indicator should be plotted in relation to the screen.

PlotLow%: (float) Determines where the lowest value of the indicator should be plotted in relation to the screen.


Slow K

This is the popular Slow Stochastic indicator. Actually it is calculated using a different formula than the published version, but it should be nearly identical.

Parameters:

Length: (int) The number of bars that the calculation takes into account. 14 has long been considered the default, but since so many people use this indicator you might consider trying other values to distance yourself from the crowd a bit.

Smooth: (int) A smoothing factor necessary in our method of calculating this indicator.

BuyZone: (float) Where to plot the buy line.

SellZone: (float) Where to plot the sell line.

PlotHigh%: (float) Determines where the highest value of the indicator should be plotted in relation to the screen.

PlotLow%: (float) Determines where the lowest value of the indicator should be plotted in relation to the screen.


Smart Money Index

This indicator was actually inspired by some bulk mail received by a popular seminar conductor. It looks like something good came from all of those ads after all! This indicator attempts to measure smart money (pros) and dumb money (public), then plot them on top of each other. In the chart below, smart money is blue and dumb money is red. When one of these lines is greater than zero, that party is buying. When less than zero, that party is selling.

Parameters:

PlotHigh%: (float) Determines where the highest value of the indicator should be plotted in relation to the screen.

PlotLow%: (float) Determines where the lowest value of the indicator should be plotted in relation to the screen.

Length: (int) The number of bars for the indicator to consider. Longer values will give a longer term view.

Smooth: (int) A smoothing factor to eliminate false crossovers. Only a small value is necessary here.


Wave Tracker

This tool will automatically track the waves on the chart. It has the ability to track 3 levels of waves:

Minor: denoted with a dot

Intermediate: denoted with an "x"

Major: denoted with a circled "x"

These waves do not appear in real time, but are labeled after the fact. Their main purpose is to find important price levels to apply other tools such as ABC Targets and the Fibonacci Vortex. So if you want to apply an ABC target projection to your chart, you might use the last 3 intermediate pivots to project the next intermediate level.

Every now and then, an x in parenthesis will appear. These are phantom waves, and generally should be considered as part of the current intermediate wave. Most retracement and projection tools work best if the phantom waves are simply ignored, but they are marked on the chart for those times when a wave is needed but there are not really any good candidates to be found. For example, in a very strong uptrend, an intermediate wave might not be formed for a very long time. In a case like this, phantom waves can be substituted so the indicators can still be applied.

Parameters:

Minor Pivots: (OnOff) This toggles the minor pivots on and off.

Intermediate Pivots: (OnOff) This toggles the intermediate pivots on and off.

Major Pivots: (OnOff) This toggles the major pivots on and off.

Intermediate as Numbers: (OnOff) When on, an intermediate pivot will be displayed as the extreme price of the pivot bar rather than as an "x". Useful for traders using Gann style analysis or working on their own projection techniques.

Major as Numbers: (OnOff) See above.


ABC Targets

This is a price projection technique that requires three pivot points (high-low-high or low-high-low) to compute targets. Once you have clicked this item, the cursor should turn into a small cross that will let you mark your pivots. After the third is marked, the targets will appear.

The chart shown above contains an ABC target with pivots at "A", "B", and "C".

For formatting purposes, the hotspot for this indicator is found at pivot C. Clicking there with the Wrench cursor (found on menu bar) will bring up the following format screen:

Multiplier: A basic target is generated after you select the three pivot locations. It is considered as a multiple of 1. If you wish to divide this base target up to get different targets, you may do so by changing this parameter. A value of 0.5, for example, would show all the regular targets plus the half way points as well.

Snap to Extremes: If checked, the software will place your pivot levels at the highest or lowest point of the specified pivots. If unchecked, the targets will be calculated at exactly the levels you clicked in with the cross cursor, even if they are far away from price.

Show Numbers: If checked, price labels will appear alongside their respective horizontal levels.


Fibonacci Vortex

See the Vortex Page for more.


XAverage

This will plot an exponential moving average of price. This average is not as good a filter as our adaptive one, but sometimes lag is a good thing when using crossovers, etc.

Parameters:

Price: The data series used to build the moving average.

Length: The length of the average.

Color: Plot color.

Thickness: Plot thickness.

Displace: How many bars to displace the average. Positive values will shift it to the right, negative will shift to the left.


Flux Lines (Aspects)

This indicator will construct support and resistance flux lines using user defined planetary aspects. This is done by taking the difference between the positions of two planetary bodies and converting that number to price. Below is the setup screen for this indicator:

Planet A and Planet B:

Select the appropriate planetary bodies under "Planet A" and "Planet B". If you select multiple planets under a particular column, those planets will be averaged before calculating the aspect. For example, if you wished to convert the Mercury-Venus aspect to price levels, you would select Mercury as Planet A and Venus as Planet B.

Plot Options:

These settings let you specify how an aspect gets converted to price. You need to specify the number of price points for 360 degrees of the astrologer's wheel, and how many points separate each line. The defaults are 360 and 5.625, which means that an aspect will be converted to price as if 360 points was equal to a degree measurement of 360. This is a one to one correspondence, just as Gann used on some of his charts. Then a new line is plotted each 5.625 points after this (the 64th harmonic of 360: [ 360 / 5.625 = 64 ] ). This works well on the S&P, but may be too wide for some markets. If so, reduce the 360 to a smaller number.

Selecting "Show Inverse" will add flux lines that fall at the inverse of the aspect value, or 360 - aspect.

Natal Options:

If selected, the value used for Planet B will be calculated with the selected natal date. This will allow aspects between current planets and birth (first day of trade) planets.


Flux Lines (Planetary)

This indicator will convert planetary positions to price degrees. This was a favorite technique of legendary trader WD Gann, who mentioned doing this in a number of his courses and correspondences. Below is the setup screen that appears before applying this indicator:

Select Planets:

Select all planets you wish to display as support and resistance levels. Note that the positions directly up from the NYSE and MERC are also available for conversion.

Options:

Points per 360 and Points to Next govern the way in which planetary degrees will be converted to price. First the planetary position will be converted to price using Points per 360, treating one complete cycle around the astrologer's wheel as covering the specified number of price points. Then, lines will be drawn every Points to Next points. The default is 360 and 5.625. Since 360/5.625 = 64, this will plot lines along the 64th harmonic.

If Show Inverse is selected, the inverse positions of the planets ( 360 - position ) will also be displayed. This is useful when plotting the Moon or Exchanges.

If Show Planets as Average is selected, all planets checked of in the "Select Planets" section will be averaged together, then that average will be converted to price.

Colors:

Each planet has an associated plot color, which will help you keep them separate throughout the trading session. To change the color of a planet, highlight it in the list box, select the new color, and click "Set".

Ascendant:

If Link to Ascendant is selected, the planetary positions will be adjusted so that 0 degrees falls upon the Ascendant of the given date. Note that the Ascendant can refer to the Merc or Nyse. This is an experimental feature.

Plot Options:

This area controls how the flux lines are plotted. Note that dashed and dotted lines only work with a width of 1. All other widths will result in solid lines.

Zodiacal System:

This sets the zodiacal system that Wave59 will use when it computes planetary positions.


Moon Sign Change

This indicator will plot the time when the Moon changes it's zodiacal sign. Usually a minor trend reversal accompanies this event. Since this change occurs relatively rarely during the trading day, consider it a special occasion when it does.

Parameters:

Plot %: (Float) This governs where on screen the labels will be drawn. A value of 5 would correspond with placing the labels 5% of the total screen distance from the bottom.

Tropical Zodiac: (OnOff) If on, the tropical zodiacal system will be used. If off, the sidereal zodiac will be used instead.


Natal Forecast

This indicator generates an astrological price forecast for any instrument based on the day that symbol first traded. It is undoubtedly one of the most potent tools in the entire software package, and a version of it was once offered as the basis of a very expensive S&P advisory service.

Since this indicator uses no price data in it's calculations, a forecast can be generated for any time period past or future. Various setup options are available to allow experimentation and customization:

Natal Date:

The most important setting. You must enter the day that your instrument first traded. This is what the forecaster will use to determine cycle positions. If you are trading stocks, this means you'll have to do a little research before being able to apply this indicator. Some useful first trade dates are:

S&P 500: 4/21/1982

Nasdaq 100: 4/10/96

Treasury Bonds: 8/22/1977

Soybeans: 10/5/1936

Currencies: 5/16/1972

Coffee: 3/7/1882

IBM: 5/1/1958

QQQ: 3/10/1999

(all dates are mm/dd/yyyy)

For a list of more futures dates, visit this webpage.

If you need first trade dates for stocks, please take a look at the following book:

Planetary Stock Trading by Bill Meridian

Cycles Research

666 5th Ave No. 402

New York City, NY  10103

It's got first trade dates for 1000 or so of the most popular stocks, so it's a great reference item if you're interested in applying the natal forecast to markets besides those listed above.

Options:

Show Regular and Show Inverted determine how the forecast is plotted. The forecast is the same in each case, but the inverted gets flipped upside-down. Remember that no price data is used to generate this forecast - so sometimes things appear turned around. Select Gapless to remove any overnight gaps - useful for longer term projections.

Exchange:

Select which exchange to use. This is important because it is the geographical location of the exchange that passes the market though various cycles as the Earth rotates during the trading day. If your market is traded on an exchange not listed, click "Add an Xchg" to create a new entry.

If Use Ascdt is checked, the algorithm will use the ascendant of the given location instead of the midheaven. The midheaven is straight up (at a right angle to the ground) and the ascendant is the degree on the eastern horizon at the given time. The midheaven is the default setting, but astrologers pay a lot of attention to the ascendant, so it's worth some experimentation to see which setting does a better job on your favorite market.

Influences:

Select the planetary influences the forecaster should consider using these check boxes. Experimentation here may yield great rewards.

Harmonics:

The second most important setting besides date of first trade. This determines how all the planetary influences resonate together to create a composite cycle. Notice that there are different settings for planets and the exchange. Planets generally need a higher value here because they are a lot slower. The default is 36/6, which works well on a 5 minute S&P chart. 45/8 works very well on a 30 minute chart. Note that these settings are not necessarily optimal. Other trading instruments and time frames will require some tuning. If you are serious and really want to get a good forecast, you'll do some major experimentation here. (Take the hint and start right now - you won't regret it when you find the ultimate settings for your stock or future!)

Shift By:

This setting allows you to shift the forecast right or left. Note that all inputs are in minutes, with positive inputs shifting right (to future) and negative inputs shifting left (to past).

Coordinates:

If Use Apparent is checked, the planetary degrees used in the forecast will correspond with what you would see with the naked eye when standing on Earth. If unchecked, the true geometric value of the planets will be used (where they physically are at that instant). Unless you're using really high harmonics, the differences will be negligible.

Old Style Asteroids governs how asteroids are calculated. Changes to the ephemeris were made in version 2.15 which increased the mathematical accuracy of the asteroids, but ended up causing problems for traders using the old style asteroid routines. If this box is checked, the asteroid routines from 2.14 and lower will be used. This will allow backwards compatibility for those traders who have put a lot of work into tuning their forecasts, while still providing an option to use the newer algorithms.


Planet Cross

This indicator will allow you to plot the times when the exchange passes a particular planetary body on the astrologer's wheel. Harmonics of this event may also be displayed - when we are 90 degrees to crossing, etc. Below is the setup screen:

Planet:

Select the planet to track. These values are all geocentric (earth based).

Exchange:

Select which exchange to consider.

Options:

This will let you define what harmonics to display. Think of harmonics as divisions of a circle. So the first harmonic only plots the exact time the exchange passes the planet. The second harmonic would plot when the planet is directly overhead and directly underneath (through the Earth). The fourth harmonic would show 90 degree locations - overhead, left, underneath, right. And so on.


Harmonics

A lot of the astrological tools are based on harmonics, so it is important to understand this concept when trading. Think of harmonics as different ways to split up a circle. Important harmonics always split the circle up evenly (no fractions) because this allows cycles to combine constructively.

Constructive and Destructive Cycles

Imagine two people each holding the end of a long rope. Each person moves his or her end up and down to create a nice wave that flips up and down. Notice that once the rhythm is established, everything is very harmonious and clear.

Now, imagine that the two people move their hands up and down faster, but keep a nice rhythm together. What will happen?

The answer is that more "bumps" will be formed in the rope. We now have a situation where the rope holds two bumps in it, but everything is still stable. This can continue indefinitely.

These cycles are considered constructive because they end up producing "standing waves" in the rope. Constructive cycles must be of a length such that they take up exactly all the room in the rope. Anything else would be a destructive cycle, and would result in no standing waves and just a lot of thrashing about with the rope.

Harmonics of a Circle

A circle contains 360 degrees. As the planets move (for our purposes when looking at geocentric astrology) around the Earth, they make all kinds of aspects with each other. The important aspects have been recognized by astrologers since ancient times. Some important aspects include:

Square (Planets are 90 degrees to each other)

Trine (Planets are 120 degrees to each other)

Opposition (Planets are 180 degrees - opposite - to each other)

These aspects are important because they occur in such a way as to create a constructive cycle. Take the square aspect for example. 360 degrees divided by 4 is 90 degrees. This means that exactly four cycles of this length can fit into our sky. Any kind of force generated by this relationship would create an important standing wave in the sense that it would never cancel itself out as it bounced around in orbit.

In this software, harmonics will be found referring to cycles and to astrology. When we say the 1st harmonic, we are really referring to a complete cycle, or 360 degrees. The 2nd harmonic is 180 degrees. The 3rd is 120 degrees, etc.


Planet Rise/Transit/Set

This indicator plots times when the planets rise, set, and move above one of the major exchanges. Each event is designated by a vertical line on the chart, colored and labeled according to which planet it represents. If the line refers to a planet rising, there will be a horizontal line underneath the letter. If the line is setting, the horizontal line will be above the letter. For transiting planets, there will be no horizontal line. Think of the horizontal line at the horizon of the Earth.

This indicator works best on a 1 minute chart, and will identify many minor turns on that time frame. Below is the setup screen:

Colors:

This area will allow you to specify the colors of each planet. To change a color, simply highlight the planet in the list box, select the new color on the grid, and click "Set".

Display:

When Vertical Lines is selected, vertical lines will be drawn to demark the events. When Text Labels is selected, the letters identifying each event will be plotted at the appropriate location.

Exchange:

Select the exchange you wish to use. Since these exchanges occur at different latitudes and longitudes, this setting can make a big difference in the output of the indicator.

Show:

These check boxes allow you to specify exactly which events will be shown.


Planet Rise Harmonic Index

This indicator measures the relationship between the exchange and the planets as the exchange moves through the day. As the indicator moves up, the relationship between the exchange and the planets is becoming more harmonic. Use this index to find the "sweet spots" for turning points to form. This usually occurs at peaks above 10. Since this indicator is not based on price, it can be calculated infinitely into the future.

Parameters:

Error: (int) This determines how exact the relationship needs to be between the exchange and planets for it to count towards the index. This input refers to minutes of time.

Merc: (OnOff) If on we use the Chicago MERC, otherwise we use the NYSE.

Plot High %: (float) Determines where the highest value of the indicator should be plotted in relation to the screen.

Plot Low %: (float) Determines where the lowest value of the indicator should be plotted in relation to the screen.

Bands: (OnOff) If on, trigger bands are plotted. The indicator starts at zero and plots a new band every Band Increments points until we run out of room.

Band Increments: (int) How many unit apart each band should be.


SA/SR

This indicator plots strange attractor / strange repeller areas on a chart. These areas are derived from planetary positions, and represent areas when price and time are equal. Each SA/SR location is labeled to show what planet is responsible for it.

Trading tips:

Think of these areas as minor explosions on the price chart. This will help you use them properly. The other major thing to realize is that not all areas are important to a chart. Sometimes price will just ignore a particular influence. Certain markets will respond to some influences better than others. If you do a little research, you'll find which planets move your market. For example, the S&P nearly always does something interesting when Mercury is concerned.

Parameters:

Points per 360: (float) Determines how planetary positions are converted to price. This input refers to how many points each 360 degree planetary cycle is worth.

Step Size: (float) Once planetary position is converted to price using Points per 360, a new level is added every Step Size points. This will allow you to plot harmonics of a particular event.

Show Oppositions: (OnOff) If on, oppositions (when the planet is directly underneath the exchange) will be shown in addition to conjunctions (when a planet is directly overhead).

Merc: (OnOff) If on, the indicator will use the Chicago MERC in all calculations. Otherwise, it will use the NYSE.

Tropical Zodiac: (OnOff) If on, the indicator will use tropical planetary positions. If off, sidereal positions will be used. Click here for more information about zodiacal systems.


Andrew's Pitchfork

This drawing tool will display Andrew's Pitchfork. This drawing object requires three pivot levels, so once you click this item in the menu the cursor should change to look like a small cross. Use this to select your pivot levels. Once the third pivot has been selected, the pitchfork will be drawn.

The hotspots for this tool are the three pivot levels. Any of these points may be clicked with the appropriate cursor to format, adjust, or delete this item.


Bar Counter

This drawing tool will count the number of bars/degrees between any two locations on the chart. Simply select it from the menu and the cursor will change to a small vertical bar. Click this once on your starting location, hold, and drag to the second location. Hotspots are the extreme ends of the line drawn. Either of these points may be clicked with the appropriate cursor to format, adjust, or delete this item.

The options on this form change depending on whether the chart is intraday or end-of-day. Both will be discussed below.

Intraday

The format page for this tools looks as follows:

Notice that you can count either the number of bars between two points, the number of degrees between them, or the number of degrees the Moon has progressed during that time. The degrees (2nd choice) counted are the number of degrees that the Earth has spun on it's axis between the first and second points. Note that this value will differ depending on geographical location, which is why it's important to select the correct exchange in the drop down box. If the exchange for your market is not listed, you may add it to the list by clicking Add an Xchg. If Include Overnight Rotation is checked, Wave59 will calculate the true rotation of the Earth, including what happened overnight and on periods not shown on the chart. If this option is unchecked, the count will represent rotation only during periods shown on the chart.

End of Day

The format page for this option looks as follows:

In this case, you may elect to count either trading days, calendar days, planetary degrees, or Lunar years moved between the two points. Planetary motion may be either geocentric or heliocentric. If geocentric, retrograde motion is included in the total of the degree value. You may select the planet and orientation you wish to use by clicking on the Select button. Wave59 will remember these settings and will always default back to the last selection.


FOG

This is Al Larson's Face of God pattern. You need Al's permission to enable it in your software. You may contact him through the following channels:

MicroMedia - The Chaos Mint

Box 33071

Northglenn, CO  80233

Voice: (303) 452-5566

Fax: (303) 457-9871

Email: allarson@moneytide.com


Fractal of Pi

This is Al Larson's Fractal of Pi pattern. You need Al's permission to enable it in your software. You may contact him through the following channels:

MicroMedia - The Chaos Mint

Box 33071

Northglenn, CO  80233

Voice: (303) 452-5566

Fax: (303) 457-9871

Email: allarson@moneytide.com


Gann Fan

This tool plots a Gann fan on the chart. It will originally be drawn at the center of the chart, so you will need to drag it (hotspot at leftmost end of fan) to the desired location on your chart.

Ratios:

This list contains all the different lines the Gann Fan will plot. The format is Rise X Run, where "Rise" and "Run" are numbers. You can use the classical ratios, or use weird ones like 1.618x1.

Direction:

Select which kind of fan you wish to draw. Check "to the right" for the fan to move forward in time.

Scaling:

This lets you define the rate at which the 1x1 fan rises or declines. Points per bar, hour, and day are all possible selections. Note that by using the pointing hand cursor, you can adjust this value to dynamically reflect the true scaling of the market. Dynamic fans, set to the scaling of recent swings, tend to be much more accurate than static fans set to a constant scale factor.


Gann Square

This indicator was inspired by Gann's Square of 12, which is a square with an array of important lines zig-zagging from end to end. Our version is a much simplified version of this, but has the advantage of allowing you to exactly set the proper width and height parameters. Below is the format screen:

Price Scaling: This lets you set the rate at which the 1x1 line (connects one corner to another) rises or declines. Points per bar, hour, and day are all possible selections. If manual is selected, you can set the exact high and low prices of the square.

Width: This lets you specify the width of the square. Again, you may specify bars, hours, or days. Note that the square will not appear if there is not enough space on your chart.


Regression Channel

This will plot a price channel that automatically adjusts its width depending on the volatility of the data. The slope of the line is determined by linear regression. The width of the bands by taking a standard deviation of the selected data, multiplying by a constant, and adding/subtracting to the linear regression line.

To apply the channel, select it from the drawing menu, notice your cursor changes, click on the starting bar, hold the mouse down, and drag to the ending bar. The channel will update as you drag it, so it is very easy to get the desired fit. The hotspot is the very leftmost edge of the channel.

Options: # Standard Deviations sets the number by which the standard deviation will be multiplied before adding to the linear regression line. If checked, Extend to Right will extend the channel past the second pivot location into the future.


Retracement Levels

This drawing tool plots various retracement levels on the chart. Once you select it from the drawing menu, the cursor will transform into a small cross. Click on the starting and ending points of the price swing you wish to calculate retracements for, and the following setup screen will appear before the levels are plotted:

This tool has the ability to plot two different kinds of retracements: arcs and lines. Straight lines are the typical retracement levels as described in many trading books. The difference between the two pivot levels is calculated, multiplied by various ratios, then drawn across the screen. Arcs are slightly different in that they are drawn in two dimensions. So all the same calculations are done, but the ratios use physical distance across the screen rather than price distance when plotting levels.

The ratios used by the software can be customized by the user. All ratios used are contained in the list at the right. Simply use the "Add", "Remove", and "Clear" buttons to alter the contents of the list. Once you have set things up exactly how you want them, you can click "Save as Default" to have the software remember your choices in the future. Clicking "Restore Defaults" will reset to the list to it's original state with the ratios as shown in the graphic above.

Hotspots for this tool are at the second pivot level as selected with the cross cursor.


Text

Clicking on this drawing item will bring up the text cursor:

Click with this cursor anywhere on the chart, then use the keyboard to enter your text. Each click will enable one line of text. The hotspot for this tool is the upper left-hand corner of the sentence, so click there with the appropriate cursor to format, drag, or delete the text.


Trendline

This is the most widely used drawing tool. It is simply a straight line that can be drawn anywhere on the chart. Clicking this item in the drawing menu will bring up the trendline pencil cursor:

To draw a trendline, click at the starting point, hold the mouse down, and drag to the ending point. A line will be drawn between these two points. Hotspots are the ends of the line, so click either one with the appropriate cursor to format, drag, adjust, or delete the trendline.


Vortex
Fibonacci Vortex

This drawing tool is one of the greatest indicators in the entire software suite. It has the ability to call turning points in time and price very accurately, and works especially well when used in conjunction with other tools like the 9-5 Count or Natal Forecast. The downside to the Fibonacci Vortex is that it can take a little time to set up properly.

The vortex is based on the golden spiral, a graphical version of the fibonacci sequence. This shape has captivated mathematicians and scientists for centuries. Issac Newton was so obsessed with this pattern that he had it carved into his bedframe.

The vortex is actually composed of multiple parts: four spirals and eight spokes.

In the graphic above, you can see the completed form of the vortex. There are two swirling patterns, red and blue, each composed of two golden spirals. These will be used to locate turning points. There are also eight green spokes to the pattern, which will be used to fit the pattern to price and also as future trendlines.

To use the vortex properly, you need to have three things:

1. A properly scaled chart

2. The last three important price turning points

3. A properly sized vortex pattern

Since the vortex is a geometric pattern, you need to be using a properly scaled chart for it to work. Don't even bother with it if you're on automatic scaling!

Once you have properly scaled your chart, you need to locate the last three turns in the market. You can pick them out yourself, or use the Wave Tracker to find them for you. The important thing is that they are of the same degree - or about the same wave size.

Once you have identified your three turning points, you need to center the vortex pattern on the last of the turns. Click here for more about how to move drawing objects.

So in the chart above, we have selected our three turning points, have placed the vortex on the third, and are looking to locate a fourth turn. Before we can try to pinpoint where the fourth turn should come in, we need to fit the vortex to price using the following rule:

Use the smallest vortex pattern such that one of the spokes falls upon the first turning point and one of the spirals falls upon the second turning point.

Memorize that right now if you're going to be using this tool. This is how you will find the correct vortex to use for a given situation.

Making your vortex obey this rule takes a little work. You rotate the vortex by clicking on its center with the "adjust drawing object" cursor, holding, and then moving right or left. You can increase the size of the vortex by typing a "2" or a "+", and can reduce the size by typing a "1" or a "-".

Remember that you want to find the smallest size vortex that obeys the fitting rules. When you first apply a vortex to the chart it is considered quite small (although it can go smaller). This means all you have to do is keep increasing it until you find the right fit.

You need to check the blue spiral and the red spiral for each size that you try. So in our current situation, let's rotate the vortex so the blue spiral falls upon the second turning point:

So in the chart, we have the blue spiral hitting the second turn, but the green spoke is nowhere near the first turning point. No fit yet...

Let's try the red spiral:

Now the red spiral is on the second turn, but there is still no spoke touching our first turn. We need this to  be exact. The low of turn two should fall right on the edge of one of the spirals, and a green spoke should go right through the high of that first turn.

Since we have tried both spirals and still haven't found a good fit, it means our vortex is the wrong size. Increase it by hitting the "2" or "+" key once.

Increasing the size of the vortex did the trick! See how the blue spiral touches the second turn and one of the spokes is hitting the first turn? That means this is the correct vortex to use.

If this didn't fit, we would continue with our process: try the red, increase, try the blue, try the red, etc... The whole thing can sometimes go on for quite a few iterations.

So now we are ready for projecting our fourth point. The fourth turn should land somewhere on one of the spirals shown, but we need to consider two cases:

1. When the second turn falls on the red spiral

2. When the second turn falls on the blue spiral

So even though we fit the vortex using the blue spiral on the second turn, it might be that we need to turn the vortex so the red spiral goes through this point. This is very important! A chaotic market always has at least two solutions, so you never know which vortex will actually mark the turn. This is why it is very helpful to use other tools to confirm possible bottoms or tops.

Here's what happened in our example:

So it turned out that to get the low we had to put the red spiral on that second turning point after all.

This may seem a bit complicated right now, and if it does just read this whole page again. Then try to apply the vortex to about 30 situations. It will become easier and easier to find the proper vortex and to locate the fourth (future) turning point.


Scaling

Scaling is a very important, but extremely overlooked, concept when it comes to technical trading. Without it, none of the geometric patterns built in the Pattern Builder would work very well. And you might as well just toss the Fibonacci Vortex as well if you're going to ignore scaling!

WD Gann was the first to recognize that the price and time axes on a chart are not independent from each other. Price and time are related in subtle ways, and when this relationship is recognized (by using properly scaled charts) many interesting patterns and formations start jumping out at the analyst.

To properly scale your chart, you need to set X points equal to Y time periods. The relationship between X and Y needs to be harmonic in some important way. Usually this means using natural whole numbers.

For example, a 5 minute S&P chart scales very well to multiples of 12 points per day. 12 points times $250 per point is $3000 per day, or $15,000 per week. So the dollar values are nice round numbers. Another test is to see if the points used relate to 360 (degrees in a circle) in any way. In this case 360 / 12 = 30. 30 is a "nice" number too, and relates to the dollar value of $3000.

You don't have to go crazy with this process, but it is important to think about it a little in the beginning. Wave59 has the ability to plot points per day/hour/bar, so there are many possibilities for you to find good scale factors. Ideally, you want a price chart that moves up and down at 45 degree angles.

Once you've got a potential scale factor, you should test it out a bit. Can you find circles in the chart? How about the Fibonacci Vortex? Is it picking out the tops and bottoms exactly, or are you getting garbage out of it? Use these two methods to tell if you've got a good scaling on your chart.

Once you've found a good scale factor, you should never need to change it. Just multiply it by 2 or 3 on the volatile days, and you should be in good shape. Although you might not realize it at first, scaling your chart properly can give you an enormous edge against those traders using automatic scaling. The reason is that you will be able to start picking out the patterns in the market off a stable screen, while they will have to suffer under the distortions of their automatic scaling which will constantly be warping the picture for them.


Building a Neural Net

Building custom neural nets in Wave59 can be done very easily. Simply load a chart that contains all the data you wish to train your net on, and launch the automated wizard from the Neural Menu. The following screens will lead you through the process:

This tab lets you specify all the inputs you wish to allow the net to consider. Simply click on one of the items in the list and hit the "Add" button to add it to the input list. All QScript functions are included in this list, so it is very easy to use custom indicators as inputs to a net. You may select up to 8 inputs.

The box at the bottom of the form will allow you to set the number of bars used as reference bars for all indicators that the net is aware of. If you This represents how much data is put aside before calculating any indicators. Each indicator needs a little history before it can begin to produce an output, and this setting allows you to manipulate exactly how much history will be put aside for this purpose. Some indicators, like the fractal trend index, may require a setting as high as 65. Please consult the QScript help file for more on reference bars. If your net gives you a reference bar error message, make sure to increase this setting appropriately.

Once you have selected your inputs. Click the "Output" tab to view the following screen:

You have a number of options here. You may tell the net to try and predict the value of an indicator, in which case you use the list at the left in the same way as the previous screen. You can enter how many bars into the future to predict with the "Shift target this many bars into the future" edit box. Once satisfied, choose "Minimize Error" in the Options section, an error measurement, and hit "Next" to continue.

Alternatively, you may choose to train your net based on profitably trading one of the indicators or price. If you choose to build a trading system, select "Close" as the indicator to predict and click "Maximize Profit" under the Options window. There are three other important settings:

Penalize for fewer trades than: If your system trades fewer times than this, it will be penalized to promote systems with more trades.

Buy on cross above (-1 to 1): The neural signal will range from -1 to 1. Use this to specify when the net should take buy signals.

Sell on cross below (-1 to 1): Use this to specify when the net should sell.

Add in open equity: When checked, the profits from the currently open trade will be added to the total when judging the fitness of each net.

Exit on close of day: When checked, the neural net will close all open trades at the end of the trading day. This will result in a more accurate profit/loss calculation when building neural nets designed for trading intraday data. Leave this selection unchecked if building a net on daily data.

Note that the second and third settings give you control over what kind of indicator the net will build for you. If you choose (0, 0) for (buy, sell), the net will build a trend following indicator, buying on zero line crossovers. If you choose (-0.8, 0.8), the net will build a kind of overbought / oversold indicator, buying when the indicator is low and selling when high. Take your inputs into account when formulating your buy and sell levels.

When satisfied, click "Next" to move on:

This window will allow you to fine tune all inputs and output. If you wish to change the parameters of any item, highlight it and click the appropriate Modify button.

Also take note of the "Chop off first...input/output records" section near the bottom of the form. This is a very important setting that lets you throw away any number of records from the beginning of the training set. Many technical indicators output garbage values at the beginning of a chart. Since the inputs to the net will automatically be scaled, these garbage values can skew your inputs so much that the net becomes worthless. For a more detailed discussion on this issue, click here.

Next you will come to the most technical section, where you can tweak the training algorithm. This screen contains three tabs, each governing a different aspect of training. The defaults are quite sufficient for almost any situation, so there is no need to alter any of the following settings if you don't wish to.

This tab lets you control the genetic algorithm that will be training the neural net.

Population Size: The number of solutions to consider at a time. Higher numbers give a better, but slower search.

Generations to Run: Genetic Algorithms work by "mating" the most fit members of a population to create child members that should outperform their parent solutions. This setting determines how many generations of children should be considered before training stops.

Survival Rate: Governs what percentage of the population is allowed to mate to produce children for the next generation. 0.5 would result in only using the top 50% of the current solutions to create the next generation.

Smart Mutations per Generation: A proprietary input that makes our genetic algorithms much more efficient than the basic versions found in textbooks. This should be roughly the same number as the population size, but can be larger if you're willing to wait.

Regular Mutations (chance in 10000): This sets how often a population member will spontaneously mutate. This introduces a bit of randomness to help the search. This should be kept fairly low to avoid wreaking havoc on the population.

The next tab controls the structure of the neural net.

Layer 1 neurons (8 max, -1 to optimize): This sets the number of neurons to be used in the first hidden layer. The maximum is 8. A -1 will result in this setting being optimized by the genetic algorithm.

Layer 2 neurons (8 max, -1 to optimize): This sets the number of neurons to be used in the second hidden layer.

Allow net to discard inputs: When checked, you give the net permission to ignore any of the inputs you have supplied. When unchecked, the net is forced to use everything.

Activation functions: One neuron in a neural net basically works by summing all the inputs flowing into it, then multiplying by some kind of activation function to produce it's output. Activation functions are responsible for the nonlinear behavior demonstrated by nets, and there has been a lot of work on testing different functions. You may specify that the net use any of the six activation functions, or you can allow it to mix and match functions with the genetic algorithm.

The last tab controls polishing, the final aspect of training. Once the genetic algorithm is done and provides the software with it's best solution, we can oftentimes do a bit of polishing using more basic methods to improve this solution even more.

One analogy we can use is that our training program is trying to climb to the top of a mountain. The genetic algorithm has put us somewhere near the top, but not necessarily exactly at the top. By doing a bit of brute force optimization on our result, we can often take the few steps necessary to position ourselves at the exact peak of this mountain.

Initial Polishing Rate (0.0 to 1.0): This determines how aggressively we wish to test each neuron. A value of 0.2 would look 20% either side of the neuron's value for possible improvement. This starting value will slowly be reduced as we reach optimal performance levels.

Stop Polishing when Error less than: This tells the net when to give up on a particular neuron. When the performance gains are less than 0.001%, for example, there is no need to continue searching for better solutions, as any gains will be practically insignificant.

Once satisfied, with these choices, we can begin training our net:

This is an example screen showing a training run. The progress bar at the top shows how close we are to completion, and the boxes below give more information. In this case, we're training for profit, which is measured as % of perfect. Had we been training to minimize error, the fitness values shown would refer to error measurements. Click "Abort" at any time to stop training and return to charting. Click "Stop Training" to halt training an move immediately to the next step.

When done, the results screen will be displayed:

This screen informs us about the details of our neural net. In addition to neural structure and fitness at the top of the screen, relative contributions of the inputs are also displayed. This is a measurement of how much each input is used by the net. So in the graphic above, Simple Momentum and Slow K inputs were used extensively, while the Lomb Probability was ignored.

If you are satisfied with the net and wish to apply it to a chart, now is the time to save it. Otherwise, click Cancel to free memory and return to charting.

IMPORTANT NOTE:

If you are using custom scripts to build your neural net, please click here to save yourself a lot of headaches!


Loading a Saved Neural Net

Once you have trained and saved a neural net, you are ready to apply it to a chart. Simply click this option from the neural menu and you will be asked which net you wish to load:

Highlight your net, click open, and the net will be applied to the chart.


Retrain a Net

This menu item allows you to build a new network using the same inputs that were used by a network that has already been saved. This is a quick way to retrain an old network, and saves you the trouble of having to write down all inputs used in a net so that you don't forget them.


Format Active Nets

All neural nets applied to a chart may be accessed from this menu item. Clicking it will bring up the following screen:

This contains a list of all nets added to the chart, listed by their file locations. From here, you may change their settings, delete them, or view system results.

Simply click to highlight the net of interest, then use one of the buttons.

Delete

Clicking the "Delete" button will erase the selected net from the chart.

Settings

Clicking  "Settings" will bring up the following screen:

Buy and Sell Zones:

This panel allows you to specify the buy and sell levels of the indicator. If you trained this net on profit, these are the levels that determined when buy and sell signals were executed. While changing these numbers does not invalidate the training, it will likely decrease system performance. If you'd like to hide the levels completely, make sure to un-check "Plot Zones".

Plotting:

This panel controls how the net is graphed on the chart. It is usually easiest to adjust the "Plot High %" and "Plot Low %" settings by using the magnet and two-arrow cursors, but these boxes allow you to be exact.

If "Same scaling as price" is checked, the neural net will be plotted using the same vertical scale as the chart. This is helpful if you are trying to create a neural moving average or similar indicator that outputs exact price values.

Finally, if "Plot as forecast" is checked, the output will be shifted into the future as many bars as you specified to shift the output when building the net. For example, if you trained your net to forecast a momentum curve 5 bars into the future, checking this box will cause the net to plot it's output 5 bars into the future. Note that this only affects the way the net is displayed on the screen - the output is still exactly the same as before.

Save Output to Ascii File:

This will allow you to save the output of a neural net to an ascii file on your computer for further analysis. You may enter the file name directly into the edit control, or can click the "Browse" button to select the location via a standard windows dialog.

System Report

Clicking "System Report" brings up the following initialization box:

The buy and sell levels in this box should be the same ones you specified when building the net. The third box, "Dollars per 1.0 points" depends on what stock or future you are trying to get a system report for. In the S&P 500, 1.0 point represents $250, so if we were generating a report for this market, we would enter 250 here. This will give us the correct dollar amounts in our report.


Script

A script is a custom made program that instructs the software to carry out a given task such as plotting a new indicator or pattern on the screen. Scripts are written in QScript, an easy to use English-like language, and are built using the Script Editor. Please see the QScript help file for more information.


Pattern Builder

The Pattern Builder, accessed from the Patterns menu item, is the main tool you will use to construct custom patterns. Think of this module as an art program. You simply draw your pattern on the canvas provided, and the software will worry about displaying it on active charts once you have finished.

The toolbar at the left contains all drawing objects available within the program. The two floating palettes at the right allow you to change colors and styles on the fly, and can be toggled on and off from either the toolbar or the View menu item.

Here is a breakdown of the various menu items available in the Pattern Builder. Click on one of them for more details.

File: New Bitmap

File: Open Bitmap

File: Save Bitmap

File: Close Bitmap

File: Build Pattern

View: Colors

View: Styles

View: Protractor

Drawing Toolbar

Geometric Patterns Tutorial


New Bitmap (Pattern Builder)

Select this menu item to begin constructing your pattern. The word bitmap refers to the screen canvas that you will be drawing on when building your pattern. The following window will pop up to help you set up your canvas:

Select Background Color: Click on the appropriate background color. White is usually the best choice, but some traders prefer a black background. You should choose whatever color you use as a background for your charts.

Use chart as Background: Rather than using a blank background, you may load one of the currently open charts as a background. Check this box and select the chart to use from the list underneath. With a chart as the background, you can trace out your pattern using actual market data. When building the pattern, the background will be ignored, so nothing drawn in charting will ever fall through to contaminate your pattern.


Open Bitmap (Pattern Builder)

Select this menu item to load a previously saved pattern. Note that you can load any bitmap file in this way, even ones not created by the Pattern Builder. This means you can use another program, like Adobe Illustrator for example, to actually build your pattern, then just use the Pattern Builder to compile it into an indicator.


Save Bitmap (Pattern Builder)

You may save your work by selecting this menu item. The canvas that you have been drawing on will be saved to disk so you can load it again at a future date to continue your work.


Close Bitmap (Pattern Builder)

Select this item to remove the current canvas from the Pattern Builder screen. If you wish to be able to return to your canvas later, make sure to save your work before closing.


Build Pattern

Once you have completed your pattern, you are ready to build it. This will take your work and transform it into a format that the software will be able to apply to price charts later.

First, you will be asked to select a name for your pattern. Choose one and remember where you selected to save the file, as you will need to find it again when applying the pattern to a chart. A good idea is to save all your patterns in the same folder - that way you will know exactly where to look when you want to add one to a chart.

Next, you will be prompted to select a hotspot:

Click "OK" and notice that the cursor has transformed into a big circled "X". Click somewhere on your pattern with this cursor to select your hotspot. This hotspot will be the location that you move to to drag and resize your pattern. It will also be considered the center of the pattern, around which everything spins when you choose to rotate the pattern.

Once the hotspot has been selected, the Pattern Builder begins building the pattern:

This screen will be displayed as long as it takes for the Pattern Builder to complete its job of digitizing your pattern. This process can sometimes take quite a while with complicated patterns, so please be patient.

Once the "digitizing" screen disappears, you can return to charting and will be able to load your pattern on a chart.


Loading a Pattern

Once you have built a pattern, you can load it onto any chart. Simply select this menu item, and select the pattern you wish to load. It will appear in the center of your chart.

Once you have a pattern, you may do four things to it:

1) Move it.

This is done exactly the same way as with drawing objects. Simply click the hotspot of the pattern with the tow-truck cursor and drag it to it's new location.

2) Rotate it.

This is done with the pointing hand cursor used to adjust drawing objects. Simply click on the hotspot of the pattern with this cursor and drag to either side.

3) Resize it.

With the pattern selected as the active drawing object (you may have to click it's hotspot with the tow-truck cursor or pointing hand cursor), click "1" or "-" to shrink the pattern and "2" or "+" to enlarge it.

4) Delete it.

Just click the hotspot of the pattern with the trash can cursor, as with any other drawing object.


View Colors (Pattern Builder)

When selected, the color palette will be shown:

The currently selected color will be shown in the title bar (blue in this case). Simply click a new color to change the drawing color for the current tool.

This option can also be selected from the Drawing Toolbar.


View Styles (Pattern Builder)

When selected, the styles palette will be shown:

You can use this palette to change the style of the drawing tools. The current selection is displayed in the title bar (solid in this case).

This option can also be selected from the Drawing Toolbar.


Drawing Toolbar

The drawing toolbar is the toolbox from which you can select different drawing tools to build your pattern. The Pattern Builder contains many different tools you may use, so it is doubtful that you will ever be unable to build a particular pattern.

Click on any part of the following graphic for more details about that particular tool:


View Protractor (Pattern Builder)

When selected, the protractor tool will be enabled. It is initially linked to the mouse, so positioning it requires only moving the mouse and clicking once. After you are finished using it, click this menu item again and the protractor will disappear.

This option can also be selected from the Drawing Toolbar.


Drawing Tool: Arrow

This is an all purpose adjustment tool found on the Drawing Toolbar. Use it to adjust the currently active item. You must click inside a hotspot for there to be any effect - Hot spots are the highlighted areas of newly drawn tools. Clicking on the background with this tool will make any newly drawn tool permanent.


Drawing Tool: Text

This is a text tool found on the Drawing Toolbar. Click on the canvas and enter your text in the pop up dialog box.


Drawing Tool: Pen

This is a free hand pen tool found on the Drawing Toolbar. This pen is permanent when drawn, so the only way to erase it is manually with the eraser tool.


Drawing Tool: Eraser

This is an eraser tool found on the Drawing Toolbar. Any pixels under it will be erased. If you accidentally made an active item permanent before you meant to, this is the only way to remove that item from the canvas.


Drawing Tool: Line

This is a straight line tool found on the Drawing Toolbar. Click once, hold, and release the mouse to draw a line. The cursor will then change to the arrow so you can adjust your new line. When satisfied, click the background with the arrow to make your line permanent.


Drawing Tool: Square

This is a square tool found on the Drawing Toolbar. Click once, hold, and release the mouse to draw a square. The cursor will then change to the arrow so you can adjust your new square. The center hotspot will move the entire square, while the corner Hot spots will resize it. When satisfied, click the background with the arrow to make your square permanent.


Drawing Tool: Rectangle

This is a rectangle tool found on the Drawing Toolbar. Click once, hold, and release the mouse to draw a rectangle. The cursor will then change to the arrow so you can adjust your new rectangle. The center hotspot will move the entire rectangle, while the corner Hot spots will resize it. When satisfied, click the background with the arrow to make your rectangle permanent.


Drawing Tool: Trapezoid

This is a trapezoid tool found on the Drawing Toolbar. Click once, hold, and release the mouse to draw a trapezoid. The cursor will then change to the arrow so you can adjust your new trapezoid. Initially, the trapezoid will look like a rectangle, but you can change this by dragging each corner to the appropriate location. When satisfied, click the background with the arrow to make your trapezoid permanent.


Drawing Tool: Circle

This is a circle tool found on the Drawing Toolbar. Click once, hold, and release the mouse to draw a circle. The cursor will then change to the arrow so you can adjust your new circle. The center hotspot will move the entire circle, while the corner Hot spots will resize it. When satisfied, click the background with the arrow to make your circle permanent.


Drawing Tool: Ellipse

This is a ellipse tool found on the Drawing Toolbar. Click once, hold, and release the mouse to draw a ellipse. The cursor will then change to the arrow so you can adjust your new ellipse. The center hotspot will move the entire ellipse, while the corner Hot spots will resize it. When satisfied, click the background with the arrow to make your ellipse permanent.


Drawing Tool: Spirals

There are two spiral tools found on the Drawing Toolbar. They operate exactly the same way, but one spirals a different direction than the other. Click once on the chart with the spiral tool to apply a spiral. Two Hot spots will appear as the cursor changes to the arrow. The hotspot at the center will move the entire spiral, while dragging the second hotspot will spin the spiral. Use the "1" and "-" keys to shrink the spiral, and the "2" and "+" keys to enlarge it.


Patterns Tutorial
Geometric Patterns Tutorial

This is a short tutorial that will walk you through the process of building a custom geometric pattern and applying it to a chart. The Pattern Builder can build any shape that you can draw on a piece of paper, so the sky's the limit when it comes to deciding what patterns to select. For this example, let's build a pattern with three overlapping shapes: a triangle, a circle, and a square.

Step 1: Set up the Pattern Builder

Now that we have our shape in mind, let's go to the Pattern Builder. Select Patterns - Pattern Builder. The Pattern Builder screen will appear. Notice that the background is dark gray to start with. Let's bring up a canvas to draw on by clicking File - New Bitmap. Select a white background and leave "use chart as background" unchecked. The Pattern Builder should look similar to the following:

Step 2: Draw the Pattern

Now we are ready to start drawing our pattern. The first shape we need to draw is the triangle, which will be inside both the circle and the square. We want all three sides of our triangle to be equal, so let's use the protractor tool to help guide us. Click the protractor icon on the tool bar at the left, and point your mouse in the center of the screen. Click once to drop the protractor.

The protractor is only a temporary tool. We can always get rid of it when we're done. Now click on the Line drawing tool in the tool bar and start drawing the triangle. An equilateral triangle pointing up will have corners at 90, 210, and 330 degrees.

Note that after you drop a line on the chart, there are red circles at the edges. This means that the line is open for adjustments, color changes, or deletion. Clicking the eraser or the delete key will delete the line, clicking the color palette will change the color, and dragging one of the ends with the arrow cursor will adjust the line. Adjust your lines to make a nicely formed triangle.

Here is how our chart looks now:

We don't need the protractor anymore, so click it's icon on the toolbar to get rid of it.

Now we'll add a circle. Click on the circle tool in the tool bar and draw a circle anywhere on the chart. Notice that there are 5 Hot spots shown. Use the center hotspot to move the entire circle, and the corner Hot spots to resize it. We want to position the circle so that it encloses the triangle perfectly within it.

We also want to change the color of the circle, because right now it is the same as the triangle. While the circle is in adjustment mode (Hot spots are shown) click on a new color in the color palette. Since we have a blue triangle, let's do a red circle.

Once satisfied, click once anywhere on the background. Notice that the Hot spots are gone. This means that the circle is now permanent. The only way to undo it at this point is either by starting over or by using the eraser tool.

Now we need to draw the square. Before we start, let's change the color to green. Do this by clicking the green square on the color palette. Now click the square tool on the tool bar. Place a square on the chart and readjust it so that it perfectly encloses the circle. Notice that there are again five adjustment Hot spots available. The center one moves the entire square, while the corner ones resize it.

When satisfied, click on the background once to make the square permanent:

Step 3: Digitize the Pattern

We have now finished designing our pattern. The next step is to have the Pattern Builder compile it into a form that can be used in charting. Click File - Build Pattern. A dialog box will pop up:

Name the pattern (we chose "tri-circ-square") and save it. Wave59 places all patterns in a special folder where they can easily be found again.

After naming our pattern, we will be prompted to select a hotspot:

The hotspot is like the handle on the pattern in charting. All dragging and adjusting will occur by clicking the hotspot, so we need select a hotspot that is obvious and not just out in the middle of nowhere. Also note that when the pattern is rotated, it will rotate around the hotspot point.

Click OK on the dialog box, and note that the cursor has changed to a big circled "X". We'll use the top corner of our triangle as our hotspot. Click there now.

This means our pattern is being built. Some patterns may take awhile to digitize, so you have to be patient. When the Pattern builder is done, this message box will disappear.

Step 4: Apply the Pattern to a chart

Now that we have built our pattern, lets go and apply it to a chart. Close the Pattern Builder (File - Exit Pattern Builder), and open a chart. Geometric patterns work best with properly scaled charts, so make sure you scale your chart before going on.

Now, from your chart, click Patterns - Load a Pattern and navigate to where you saved your pattern. Select it and choose "Open". Your pattern should appear on the chart.

Step 5: Adjust the Pattern

Now that the pattern has been applied to the chart, you can treat it exactly the same way as any other drawing object. You may do four things to it:

1) Move it.

This is done exactly the same way as with drawing objects. Simply click the hotspot of the pattern with the tow-truck cursor and drag it to it's new location.

2) Rotate it.

This is done with the pointing hand cursor used to adjust drawing objects. Simply click on the hotspot of the pattern with this cursor and drag to either side.

3) Resize it.

With the pattern selected as the active drawing object (you may have to click it's hotspot with the tow-truck cursor or pointing hand cursor), click "1" or "-" to shrink the pattern and "2" or "+" to enlarge it.

4) Delete it.

Just click the hotspot of the pattern with the trash can cursor, as with any other drawing object.

So let's try to fit our pattern to market action using the drawing cursors and the above actions. Remember that we need to keep track of the hotspot because this is the handle of the pattern.

By shrinking our pattern down a bit ("1" or "-" keys) and dragging it with the tow-truck cursor, we found a nice fit with current market action:

We didn't rotate the pattern in this example, but we could have done so easily if we had wanted by simply clicking the hotspot with the pointing hand cursor and moving left or right.

Step 6: Deleting the Pattern

Once we're done with our pattern, we need to remove it from the chart. We can either click the hotspot with the garbage can cursor, or we can use the "Delete All" dialog box by going Drawing - Delete All... and choosing "Custom Patterns". This will delete all patterns on the screen at once.


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View Pattern/Price Correlation

In addition to doing your own pattern matching, you can tell the software to find the best fit for your pattern using this menu item. Most classical patterns can be programmed using the Time and Price Pattern Constructor, so this feature is left for times when you might need to match non-linear or very atypical patterns to the price chart.

This module will only work with certain functions. Anything that moves in a straight line with only one point per time period will work fine. Any pattern that has multiple points in a time period will come out incorrectly.

This happens because the software will get very confused when it sees two price points happening at a given location in your pattern. Which one should count? The result it that it guesses, and the guesses end up making a garbage pattern. Here are some examples of good and bad patterns to use with this process:

One mechanical way to tell if you have a good pattern or a bad pattern is to use the vertical line test. You may remember this from your math courses in high school when testing for functions. Simply take a ruler and place it at the left of the page so it points up and down. Then move it across the page to the right. As long as the edge of the ruler is only touching one point on your pattern, you are safe. If the edge of the ruler ever touches two points at the same time, you have a bad pattern. Notice how both the bad patterns shown above would fail this test.

Once you've built your pattern, you can go Patterns - View Pattern/Price Correlation to have the software fit your pattern to the data. Using the half circle shown in the bottom left hand corner of the graphic above, your chart should look something like this:

The software takes your pattern and tests different sizes of it on the chart, measuring the correlation between the pattern and price data. The pattern with the highest correlation wins, and gets plotted on price. The green line at the bottom of the screen is the best correlation found during the search. Notice that the pattern has been inverted since we currently have negative correlation.

This module functions exactly like any other indicator, and can be formatted the same way. Here are the parameters of the pattern/price correlation indicator:

Pattern Source: (fixed) The file location of the pattern.

Bars in Original: (int) Since the pattern is graphical and based on different dimensions than the price chart, we need to link them together. This setting tells us how many bars the original pattern should correspond to. If we set this to 50, it means our original pattern spans 50 price bars from start to finish.

Largest Pattern Mult: (float) This is the maximum size pattern that the software will consider when pattern matching. It is multiplied by the Bars in Original parameter to obtain an actual size.

Smallest Pattern Mult: (float) This is the minimum size pattern that the software will consider when pattern matching. It is multiplied by the Bars in Original parameter to obtain an actual size.

Step Size: (float) Determines how many intermediate patterns will be examined in the search. The software starts at the Smallest Pattern Mult, and adds the Step Size value until it reaches the Largest Pattern Mult. A smaller Step Size will result in a longer, but more thorough search.

Show Current Pattern: (OnOff) If on, the pattern will be plotted on top of price.

Threshold: (float) Determines where the dashed lines will appear in the correlation plot.

Show Threshold: (OnOff) If on, threshold levels will be shown. Otherwise, just the correlation and zero line will be displayed.

Plot High %: (float) Determines where on the screen the highest value of the correlation should be plotted. This number should be entered like a percentage, so 15 would mean 15% of the screen size.

Plot Low %: (float) Determines where on the screen the lowest value of the correlation should be plotted. This number should be entered like a percentage, so 5 would mean 5% of the screen size.


Ephemeris Tools

Our graphical ephemeris contains three useful drawing tools in the Draw menu: a triangle, square, and hexagon. When checked, these overlays will appear directly on the face of the astrologer's wheel. You may reposition them by clicking on one of their corners and dragging. This is an excellent way of measuring important aspects between planets. To remove them, simply uncheck in the Draw menu.


What's so great about 59?

One question we get a lot of is: "What's so special about 59?". We didn't just invent the name "Wave59", there's actually a real reason why it's Wave59 instead of Wave38 or something else. This has to do with an interesting relationship between the numbers 9 and 5.

The number 9

A lot of cultures hold the number 9 in very high regard. It has a lot of special properties that most people are not really aware of. Take a look:

Division by 9:

1 / 9 = 0.11111...

2 / 9 = 0.22222...

3 / 9 = 0.33333...

4 / 9 = 0.44444...

etc...

Addition by 9:

1 + 9 = 10

Now look at the digits in 10. It's a 1 and a 0. Add them together: 1 + 0 = 1.

2 + 9 = 11 => 1 + 1 = 2

3 + 9 = 12 => 1 + 2 = 3

4 + 9 = 13 => 1+ 3 = 4

etc...

So we end up with the number we started with when adding 9.

Multiplication by 9:

1 * 9 = 9

2 * 9 = 18 => 1 + 8 = 9

3 * 9 = 27 => 2 + 7 = 9

4 * 9 = 36 => 3 + 6 = 9

5 * 9 = 45 => 4 + 5 = 9

So multiplication gives us back a 9.

The number 45

So its clear there are interesting things going on with 9.

Take a look at 5 now. The number 5 is actually the midpoint of 9 because there are 4 numbers on either side of it when all the digits are written out.

As we know, 9 * 5 = 45. But you can also get 45 by adding up all the digits in 9 like this:

1 + 2 + 3 + 4 + 5 + 6 + 7 + 8 + 9 = 45

Another interesting thing about 45 is that it brings up the 8th harmonic of a circle, a very powerful harmonic. Each degree on the 8th harmonic breaks down to 9 as well:

45 = 4 + 5 = 9

90 = 9 + 0 = 9

135 = 1 + 3 + 5 = 9

180 = 1 + 8 + 0 = 9

etc...

5's and 9's

In addition to being related by the important number 45, they are related in a couple other interesting ways. If we just put the digits together, we get either 59 or 95.

The midpoint between these numbers is (95 + 59) / 2 = 77. 7 is considered the world's luckiest number, and is mentioned more than any other number in the Bible. Break 77 down and you get 7 + 7 = 14 => 1 + 4 = 5. So we reduce to 5 here. Interestingly, the number 14 also shows up when you add 9 and 5 together.

Lastly, note that the difference between 77 and 95 or 59 is 18 ( => 1 + 8 = 9).

The Human Body

Enough of numerology. If you look at your body, you'll also see the number 5 everywhere. You have 5 major "ends", namely your head, two arms, and two legs. These appendages also break down like a fractal: 5 fingers on each hand, 5 toes on each foot. We also have got 5 sense organs.

The Market

We wouldn't be discussing any of this if it didn't also show up in the markets. The most obvious relationship is the 9-5 Count, which tracks the major price cycles in bar charts. Believe it or not, this indicator also works on phenomena of nature, such as daily temperature fluctuations and spectral diagrams of the Sun. So far we haven't found a bar chart that doesn't exhibit these price cycles, even if the chart represents nature and not trading vehicles.

This was a brief summary of the importance of 9 and 5, but is not the end of it all. If you're interested in this kind of thing you can really go crazy with these numbers. Eventually it becomes a little silly, but it is important to know that there really is something behind these numbers. These numbers have not been chosen just because they seem to work - there is an important, demonstrable relationship between them.


Hotspots

Each drawing object has its own special hotspots, which are special areas of the object that you can click on with various cursors to interact with the object. For example, clicking the hotspot of an object with the garbage can cursor will delete the object from the chart.

You can ask the software to display hotspots by holding down the shift key.


Passwords

This software runs on a month by month password system. Everything has been automated, but it is important to understand how everything works in case you have trouble. When your password expires, the software will automatically launch the registration program to obtain a new password. It is necessary to be connected to the internet in order to receive your password.

The registration program automatically dials in to the main password server, updates your account, and retrieves a new password for the following month. In order to log into the server, you need to have your user name and password handy. These items were given to you at the time you opened an account with us, and are the same ones used to enter the members section of www.wave59.com. If you have lost your password, please contact us.

In addition to waiting for your password to expire and letting the software connect, you may also get a jump on things and obtain a new password manually. To do this, navigate to the folder where Wave59RT.exe is stored, and search for the program "Register.exe". Running this program will launch the registration program and you will be able to log into the password server for a new password. As before, you need to be connected to the internet for this process to succeed.


Training

Wave59 has the ability to go into training mode, where a portion of the data is hidden from view and then revealed each time you tap the space bar. All indicators and analysis techniques will update as new data is shown, so this is a great way to learn how to trade using these tools. It's faster than paper trading with live data, and allows you to dramatically speed up the learning curve.

In order to put the software into training mode, open an new chart with the data you would like to train on. Then click "Training Mode" under the "Training" menu item. That will bring up the following setup screen:

Initial Setup: This box allows you to specify how many bars should be shown when training is first started. Notice that as you change the value, the date and time underneath the control will update to reflect exactly which bar will be the last one shown on the chart.

Increment: This setting lets you specify how many new bars will be revealed each time the space bar is pressed.

Change Caption...: When checked, the caption on the chart will change to show "TRAINING". Leave it unchecked if you are building instructional play-by-play charts for a website or article.

To turn training off:

Simply select Training - Training Mode from the menu. When there is a check mark next to this item, training is on. By clicking it, training will be turned off and the chart will be returned to it's usual state. You may also turn training off by selecting "Recalculate All" from the Options menu item, or by turning Real Time Updating on again.


Using Custom Scripts in Neural Nets

One of the greatest features of the neural nets in Wave59 is the ease of using your own custom written QScripts as inputs. Unlike other stand-alone artificial intelligence programs, there is no need to transfer data files back and forth between your charting program and your neural net software.

However, there is one pitfall that you should be aware of when using your own scripts as inputs. Since the neural nets automatically scale input data, you have to be wary of QScript functions that generate wild values at the beginning of the chart. For example, let's take the following script:

input: price, length;

mom = price - price[length];

return mom;

This is a very simple function that just calculates the difference between the close (or whatever is input as "price") today and the close of "length" bars ago. This kind of momentum curve is found as a canned indicator in all charting packages.

But if you enter this function as an input into your neural net, you will get poor results. Try training a system using this as the only input and you'll see that the result will consistently be 0.0% of perfect. The reason for this is that the neural net has automatically scaled the momentum values down to a 0 - 1 range, but since there were some wild values in the beginning, everything got thrown off.

To be more clear, we can insert a print statement into the indicator and run it again:

input: price, length;

mom = price - price[length];

print mom;

return mom;

Run this on the chart, then open the Script Log to take a look at the values given:

1164.5

1163.19995117188

1166

1166.5

1167.5

1168.5

1169.5

1168.30004882813

1167.5

1167.5

3.5

3.4000244140625

1.5

0.9000244140625

-2.5

-2

-4.300048828125

-2.4000244140625

etc...

Notice that at the beginning of the chart, the function actually returns incorrect values. This is because not enough price history has been saved by the indicator to actually look the 10 bars back in time we asked it to. Since the script interpreter doesn't know what the close was 10 bars ago, it just assumes a value of 0 and does the calculation.

Now this is all fine in most instances, but when you dump these values into a neural net you have a problem because the neural net doesn't know those first values are throw-away numbers. So it scales everything down to a 1-0 range, which basically gives our momentum curve the appearance of:

1

1

1

1

1

0

0

0

0

0

0

etc...

This is obviously not the data we wish to train with! Remember that the neural net will process whatever inputs you give it - even the bad ones!

There are two ways around this problem:

1) Specify a large enough "chop-off" value in step 2 of the neural setup wizard.

This chop-off value simply throws away a given number of data points from beginning of all the input and output data sets for a given net. If you set this value large enough, all the garbage values that you don't want will automatically be removed, and your inputs will scale to 0-1 in the correct way.

2) Rewrite your QScript functions to avoid generating outliers in the first place.

To fix our function, we must make sure that our momentum curve returns a reasonable value when the indicator is still collecting price history at the front of the chart. Here's one way to do this:

input: price, length;

if (barnumber>barsback+length)  # -- this is the fix!

   	mom = price - price[length];

else

   	 mom = 0;

return mom;

So now we get a 0 at the front of our indicator until enough price history is collected to output values in the proper range. Now when the neural net scales things, there will be no wild values in the beginning to throw the entire scale off.


AccDist Indicator

This is Larry William's Accumulation-Distribution indicator.

Parameters:

Color: Sets the plot color.

Thickness: Sets the plot thickness.


ADX Incidator

This is Welles Wilder's classic trend indicator. This was a precursor to our proprietary Fractal Trend Index.

Parameters:

Length: The length of the ADX calculation. Longer values give a longer term trend calculation.

Color: Plot color.

Thickness: Plot thickness.


Average

This plots a simple moving average of a particular data series. It just sums a given number of data points and divides by the number of items summed to obtain the average. This is probably the most widely known and used technical indicator of all time.

Parameters:

Price: The price series to be averaged. "Close" is the default.

Length: The look-back period over which to calculate the average. An input of 10 would return a 10 day moving average of whatever was entered in "Price".

Color: The plot color.

Thickness: The plot thickness.

Displace: How many bars to displace the average. Positive values will shift it to the right, negative will shift to the left.


Bollinger Bands

This is John Bollinger's popular technical study.

Parameters:

Price: The price input to be used in creating bands. "Close" is the default.

Length: The look-back period to use when deriving the bands.

SDev: The number of standard deviations above/below price to plot the bands.

Color: Plot color.

Thickness: Plot thickness.


CCI

The Commodity Channel Index.

Parameters:

Length: The look-back period to use when calculating the current CCI.

Smooth: Smoothing factor used to reduce noise.

Zone1: Where the overbought zone should be plotted. Default is 100.

Zone2: Where the oversold zone should be plotted. Default is -100.

RawColor: Plot color of the raw CCI.

SmoothColor: Plot color of the smoothed CCI.

ZoneColor: Plot color of the overbought and oversold zones.

Thickness: Plot thickness.


CMO

Chande's Momentum Oscillator.

Parameters:

Length: Look-back period to use when calculating the CMO.

Color: Plot color for the CMO.

ZeroColor: Plot color for the zero line.

Thickness: Plot thickness.


DMI

This is Welles Wilder's Directional Movement Index. There are two components to this indicator, the positive (DMI+) index and the negative (DMI-) index. When the DMI+ is greater than the DMI-, the market is considered to be in a bull phase. When the DMI+ is below the DMI-, the market is considered to be in a bear phase.

Parameters:

Length: Look-back period to use when calculating the DMI.

PlusColor: Plot color for the DMI+.

MinusColor: Plot color for the DMI-.

Thickness: Plot thickness.


LeastSquaresValue

This indicator uses the least squares regression technique to determine a line of best fit for a given number of recent data points. Once the line has been found, it can be used to make price projections.

Parameters:

Price: The data series to use when calculating the line of best fit.

Length: The number of data points in the past to use when fitting the line.

Target_Ahead: Specifies which value on the line to return. For example: 0 returns the value of the line at the current bar. 1 returns the value of the line one bar into the future. -3 returns the value of the line three bars into the past.

Color: Plot color.

Thickness: Plot thickness.


MACD

This is the popular moving average convergence-divergence indicator. It is basically the difference between a fast moving average and a slow one.

Parameters:

Price: The data series to use when calculating the MACD.

Fast: The length setting for the fast moving average.

Slow: The length setting for the slow moving average.

Smooth: The smoothing factor for the second plot. To obtain the second plot, the MACD is just run through an exponential moving average with this value as the length parameter.

RawColor: Plot color for the raw MACD.

SmoothColor: Plot color for the smoothed MACD.

ZeroColor: Plot color for the zero line.

Thickness: Plot thickness.


Parabolic

This is Welles Wilder's Parabolic indicator. It creates a stop-and-reverse (SAR) system, either long or short the market. Can be useful for placing trailing stops.

Parameters:

Accel: Acceleration factor. Larger numbers result in more trades and a closer SAR value.

Color: Plot color.

Width: Dot width.


RSI

Welles Wilder's Relative Strength Indicator. This is a popular overbought/oversold indicator.

Parameters:

Price: The data series to use when calculating the RSI.

Length: The look-back length to use when calculating the RSI.

Overbought: The location of the overbought (sell) zone. Default is 70.

Oversold: The location of the oversold (buy) zone. Default is 30.

Color: The plot color for the RSI line.

ZoneColor: The plot color for the overbought/oversold zones.

Thickness: The plot thickness.


SAR_Dots

A stop-and-reverse (SAR) indicator based on an improved version of Welles Wilder's parabolic indicator. Very useful as a trend indicator or as placement for a trailing stop.

Parameters:

Factor: Similar to the "Accel" factor in the original parabolic. Higher values result in a closer SAR line. Default is 0.02.

Breakout: This version of the parabolic contains a breakout indicator. This setting determines the breakout length (in bars). Default is 3.

UpColor: Color of upward moving dots.

DnColor: Color of downward moving dots.

Thickness: Dot thickness.


SmartMoneyColorBars

This colorbar study is based on the Smart Money Index. Up-trending bars are painted one color while down-trending bars are painted another.

Parameters:

Length: Look-back period for Smart Money Index.

Smooth: Smoothing factor for Smart Money Index.

UpColor: Up-trend plot color.

DnColor: Down-trend plot color.

Thickness: Plot thickness.


Stochastics

There are two classic stochastics indicators: Stochastics(Fast) and Stochastics(Slow). Both have similar parameters.

Parameters:

Length: Look-back period for calculating the Stochastics.

Overbought: Location of sell level. Default is 70.

Oversold: Location of buy level. Default is 30.

KColor: Slow/Fast K color.

DColor: Slow/Fast D color.

ZoneColor: Overbought/oversold zone color.

Thickness: Plot thickness.


Adaptive Zones

The idea behind the adaptive zones is to dynamically create oscillator buy and sell levels based on market activity. So rather than just using 30 and 70 as our buy and sell levels, we'll use some percentage of recent oscillator action instead. This creates a more fluid buy/sell zone that adjusts to market activity. Below is a chart of this approach:

The upper indicator is a 14 bar RSI with Adaptive Zones, and the indicator below is the same RSI but with classical 30/70 levels. Notice that the Adaptive Zones provided buy levels in the strong uptrend while the classical zones only gave sell signals.

Parameters:

Osc: The oscillator to base the zones on. This is a QScript study, so you can use and QScript user function here.

Perc: The percentage of the oscillator to use when calculating the zones. So 0.2 would plot a buy zone such that the oscillator was below this zone exactly 20% of the time during the look back period.

Lookback: The number of bars to look back when determining zone percentages.

OscColor: The plot color for the oscillator.

ZoneColor: The plot color for the zones.

Thickness: Plot thickness.


Time Clusters

This indicator builds a swing history of the data on the chart, then goes through generating time relationships from the various swings using various methods. The idea is to look for price turning points when a number of these time projections cluster together. Since this indicator is plotted as a histogram, it is easy to spot these clusters.

Below is the setup form that appears when this indicator is executed:

Starting from the left side, here is a description of all settings:

Ratios:

This box contains all ratios used in generating future time projections. What happens is that the distance between two important swing highs/lows is measured, multiplied by one of these ratios, then projected forward from the second swing point. All ratios in the list will be used to create time clusters. These ratios are only valid if "Ratios" is checked under "Cluster Types" (see below).

Minimum Swing Length:

This value determines the length of time necessary for a price swing. When building the initial swing file, no swing with a length smaller than this number will be included. Instead, it will be considered as part of some larger swing.

Hide if Fewer than X Hits:

Any time clusters with fewer than this many hits (on the same bar), will not be plotted. This helps to keep the plot cleaner, and removes a lot of noise.

Swing Options:

These two controls specify minimum price requirements for a valid swing, and set the "memory" of the indicator when determining time projections using ratios. The first two boxes determine the range of swings that the indicator will examine when creating it's index. Smaller degrees of swings give more information, but more noise. Larger values focus on stronger swings, and ignore minor reactions.

The second half of this control determines how many swings to use when calculating ratios. If "Use last X Swings" is set to 2, for example, the indicator will only use the last two swings (from the currently evaluated point) when projecting time projections.

So if we had swing termination points labeled A,B,C, and D, with a setting of use last 2 swings, the software would consider swings C-D, and B-D when projecting from D, but would not consider A-D. If a negative number is entered, the software will use all swings available to generate projections, no matter how far back in time they go.

Moving Average:

Depending on the options selected, the time cluster indicator can get very messy looking. In these cases, it can be helpful to smooth things out with a moving average. This moving average is aware of both future and past values of the index, so it contains no lag. A length setting of 2 would add up the past two index values, the current index value, the two future index values, and then divide by 5. Note that a length of 0 will turn the moving average off.

Cluster Types:

This controls what techniques are used to build the index.

Ratio: If this is checked, time differences between various swings will be multiplied by the user defined ratios and will be projected into the future.

Price to Time: If checked, the price value of a particular swing will be converted to time and projected forwards. For example, a turning point at 98.00 would result in a projection for another turn 98 bars into the future. Strange but effective. Credit goes to WD Gann for this.

Marechal Angles: George Marechal was a contemporary of WD Gann and was rumored to be even better at drawing fans and angles to forecast trend changes. If checked, an automatic version of his angles will be applied to the chart to generate the index.

Note on Cluster Types: Enabling ratio analysis will result in many different turning point projections, far more than the other Cluster Types. Because of this, it is recommended that ratios not be used together with "Price to Time" or "Marechal Angles" since their output will be drowned out. However, those two selections do complement each other, and can be used together without a loss of resolution.


WAverage

This is a weighted moving average.

Parameters:

Price: The data series used to build the moving average.

Length: The length of the average.

Color: Plot color.

Thickness: Plot thickness.

Displace: How many bars to displace the average. Positive values will shift it to the right, negative will shift to the left.


Exchange Cycles

This indicator plots a very short term price forecast on the chart. It is very similar to the Natal Forecast, but focuses primarily on the exchange as it rotates past various objects during the trading day. It is meant as a timing tool for short term timeframes such as 1 and 2 minute charts.

Like the Natal Forecast, inversions can and do happen. But the times of the turning points should be very accurate. Below is a graphic of the setup chart:

Natal Date:

This is the date of the first trade of the data being forecast. Please review the comments on the Natal Forecast page for more information.

Exchange:

Select either Chicago or New York. The S&P seems to work better with New York.

Base Width:

The number of minutes a particular astronomical body will be considered as influential.

Invert:

Click this to turn the forecast upside-down.


Circles & Fans

This is an experimental drawing tool designed to locate support and resistance levels for the next swing level. The chart below demonstrates it at work on the S&P:

The idea is to place this indicator at points "A" and "B" in order to try and pinpoint swing "C". These circles and fans are geometrically based, so this indicator requires a properly scaled chart to work right!

Below is the setup window for this indicator:

Number of Circles: this is the number of concentric circles the indicator will plot.

Show: Check the various parts to draw them, uncheck to hide.


Expansion Levels

Expansion levels are very similar to Retracement Levels except they project resistance going the same direction as the initial price measurement. Below is an example:

Price is measured from turning points A-B, then projected down from point C in order to locate point D. Below is the setup form for this tool:

Options:

Check "Show Labels" to display the price levels for each expansion measurement.

Ratios:

This list contains all ratios that will be used in building the expansion levels. Notice that there are buttons that will allow you to save custom ratios as the default selection.


Fib. Time Projections

This tool measures the distance between two points on the chart, multiplies this distance by various ratios, then adds these distances to the second point in order to obtain projected turning points for the future. Here is an example:

Points "A" and "B" on the chart were defined by the user. Everything else beyond "B" is a time projection.

Below is the setup form:

Ratios:

This list specifies which ratios will be used in generating time projections.


Floating Ellipse

This study was actually inspired by an ad on the back of a trading magazine. I'm not sure whether the algorithm is the same, but I suspect it is. If it is, give credit to Tom Joseph and his Advanced GET software. If not, he at least gets some credit for the initial inspiration due to those ads.

To use this tool, determine three recent swing points in order to forecast the fourth. In the chart above,  these swings are labelled "1", "2", and "3". Note that point "1" is only useful in automatic mode (as described below). A floating ellipse will appear in empty space and will move forward to intercept price. When it does intersect with current price action, it will stop and will change colors. This is a very useful technique for locating re-entry levels in a trending market.

Below is the setup form:

Projection Type:

There are three kinds of ellipses that can be drawn: contraction, expansion, and auto. Contraction ellipses seem to be the most stable, although Expansion ellipses do have their moments. A setting of auto lets the software choose which type of ellipse to construct at a given point.

Plot Multipliers:

These two settings give control over the height and width of the floating ellipse. Increase the numbers to make a bigger ellipse, decrease them to make a smaller one.

Expansion Multiplier:

Expansion ellipses require a multiplier to keep them from shooting off the screen in only a few bars. Use this setting to control the rate of ascent of the expansion ellipses. I suspect there may be a perfect setting here, but I'm not sure what it is. Some experimentation here might pay off in the end.

Colors:

Use these boxes to set the colors of the various parts of the ellipse.


Rings of Price/Time

This tool plots rings of price/time equality on the chart. To do this, price and time are considered to be one unit. Once the conversion factor has been established, it is easy to compute rings of equal value on the chart. Gann called these kinds of measurements "Space". Below is a chart with rings centered on an important low:

Below is the setup form for this tool:

Conversion:

These settings allow you to set up the conversion factor between price, time and price/time.

Radius of Rings:

This is how many units of price/time each ring should be. Every point on a particular ring is the same distance away from the center as measured in price/time with the current conversion settings. Note that by using the pointing hand cursor, you can interactively set this value.

Growth:

This setting determines the growth ratio of price/time rings as they expand out from the starting point. For example, let's say our initial radius was 100. This represents our first ring out from the center. If we had a growth setting of 1, a new ring would be drawn every 100 units. So there would be rings at 100, 200, 300, etc. A setting larger than one results in rings spaced farther and farther apart. A setting less than one results in the rings spaced closer and closer together. This growth value represents the actual rate of growth of the rings, so a fibonacci number here results in a fibonacci growth pattern.

Options:

If "Auto snap hotspot to price" is checked, the center of the price time rings will always try to be at the high/low of the price bar. Since a few pixels can make a difference when it comes to distant rings, use this option to help you place the ring exactly on an important high or low. It can be annoying if you're trying to place the center somewhere other than the extreme high or low, so leave it unchecked if you want total control.


Static Time Counts

Static Time Counts are fixed bar counts that can be moved around from swing high to swing low in order to determine probable future turning points. The static time count bar looks as follows:

By simply selecting the end of this bar with the tow truck cursor, it can be repositioned anywhere on the chart.

Options:

Selecting "Count Backwards" will cause 0 to be placed on the right rather than the left. Then the count will proceed backwards in time.

Counts:

Use this list to customize which time counts you wish to have displayed on the time count bar.


Time Accordion

This tool allows the user to select two important turning points. The time between these points (in bars) is measured, then this value is projected forward at regular intervals to locate future turning points. This tool is functionally very similar to the Fib. Time Projections.


Transferring Scripts

Wave59 has the ability to send QScript files between different computers. Please see the QScript help file for more information.


Mirror Image Foldback

Strangely enough, the mirror image of past market action can often be an accurate forecast of the future course of prices. Take a look at the chart below:

The dotted vertical line on the chart is the location of our mirror. The green line to the right of this mirror is simply a reflection of the price action on the left side of the mirror line. Notice how this forecast gave us the general shape of market action as well as the location of important turning points.

The tow-truck cursor can be used to adjust the location of the mirror on the chart, so searching for a good pattern match is a snap.

The format screen is as follows:

Options:

If Show Regular is selected, the standard mirror image as demonstrated above will be plotted. If Show Inverted is checked, the upside-down version of this image will be plotted. The turning points between the two are identical. The only difference is that the inverted image moves the opposite direction of the regular. So if the regular is going up, the inverted will be going down.

Shift Vertically allows you to slide the starting point of the mirror image up and down by a certain number of points. This is particularly helpful if the mirror image foldback has moved off the viewable area of the screen.

Projection Ratio:

A standard mirror image represents a projection ratio of 1 to 1. This means that the price shown 10 bars to the right of our mirror will correspond with the market price 10 bars before the mirror. The time interval between them is the same. Our projection ratio will allow us to adjust this relationship. A ratio of 2, for example, would take the price 10 bars before our mirror and would plot it 20 bars into the future. A ratio of 0.5 would plot that same point only 5 bars into the future.

Colors:

These boxes allow you to set the plot colors for the regular and inverted mirrors.

For more information about mirror image foldbacks, please consult: The Geometry of Stock Market Profits, by Michael S. Jenkins.


Editing Price Data

Wave59 allows full editing of the data that is used to build a chart. This is very useful when your data feed transmits a bad price tick that distorts the chart and ruins your analysis techniques. Rather than letting one bad tick ruin an entire day of trading (as is often the case with internet-based data feeds, where no data editing is possible), you can simply edit out the bad tick yourself.

Note that any price editing is only valid for the particular chart you are working on. Editing does not change the price data in your data server!

To edit the price bars, click "Format -> Edit Data" from an active chart. The data editor will appear:

Each row represents one price bar on the chart. Simply double click the bar you wish to edit, and enter your new values.

After all editing has been completed, you may click "Make Changes" to transfer your changes to the chart, or "Cancel" to return to charting with no changes.


SavGolay

This is the Savitzky-Golay filter modified for smoothing time series data. It's basically just a fancy moving average.

Parameters:

price: The data series to smooth.

length: The number of data points to consider when generating a smoothed value.

poly: This indicator smoothes data by fitting a polynomial to the raw data points. This number specifies the degree of that polynomial. The higher the degree, the better the polynomial will fit the data points. Conversely, the higher the degree, the more noisy the fit polynomial will be.

color: What color the plot should be.

thickness: How thick the plot should be.


Setting up your data feed

Wave59 supports many different data feeds and 3rd party data servers. When you first start the program, you will have to set up your data feed so that the software knows where to look for data. Simply click "File -> Server Setup" to bring up the following form:

Now select from the list of servers and feeds for the one you plan on using in your trading.

Offline: this selection does not use a real time data feed. It is here so that Wave59 can be run for research purposes on a computer with no data feed. In order to set up a chart using this selection, you'll need Ascii or Metastock files. Click here for more about working with offline data.

eSignal: Wave59 can connect directly to DBC's eSignal data feed. No additional applications are needed when using this feed. If "Close Data Manager on Exit" is checked, Wave59 will attempt to shut down the Data Manager when it closes. Leave this unchecked if other applications besides Wave59 require access to the data feed.

Interactive Brokers: Your Wave59 software came with History59, a helper program that can collect and store data from Interactive Brokers. Once History59 has been configured, Wave59 will be able to plot data collected from Interactive Brokers. You will need an active account with them in order to use this data option. Please launch History59 (found on your desktop), and follow the instructions there in order to set up the connections.

IQFeed: Wave59 can connect directly to DTN's IQFeed. IQFeed must be installed on the user's computer before Wave59 will be able to use this option.

QCharts: Wave59 can connect directly to Quote.com, the popular internet-based data feed. All the data handling routines have been built into the software, so no additional applications are needed when using this feed. The package to subscribe to is "QCharts Basic".

Photon: This is a data feed provided by the Photon execution platform. You must have an account with Man Financial to be able to access it. Call Chris at 1-800-423-8320 to set up an account. The updates are free with your account, but you will need a subscription to a special version of IQFeed to provide history. We've negotiated a $25/month history rate with them, which is a deep discount compared to their real time pricing. Sign up through this special link: www.iqfeed.net/wave59man

Gain Capital/Forex.com: This is a data feed provided by Gain Capital. You must have an account open with them in order to access it. It is a Forex-only feed, but the updates are free. Contact them at www.gaincapital.com.


Processing Corrections

Some data feeds (like Quote.com) broadcast corrections to erroneous data transmitted earlier in the session. When Wave59 receives a correction, it stores it away and notifies you at the top of the chart window:

Rather than interrupting your trading session by processing a correction each time one arrives (and possibly bringing your computer to it's knees when your data vendor has a bad day), Wave59 will wait until you tell it to before it rebuilds the chart with the new data. A menu item "Process Data Corrections" will appear underneath the Options menu item when a correction is available. Simply click this (or press F4) to process the correction.


Renaming and Deleting

QScripts, patterns, saved charts, neural nets, and quote settings all are customized and saved under a name chosen  by the user. After using Wave59 for a time, it may become necessary to delete or rename old or infrequently used files. This page describes how to rename a custom pattern, but the process is similar for all of the items listed above. The only difference is the initial screen that must be brought up to begin the process.

Example:

To rename a custom pattern, bring up a chart and click "Patterns - Load a Pattern". This will bring up a list of all patterns available for plotting. Click the desired pattern once (not twice!) and when the pattern is highlighted, execute a right-click to bring up the following pop-up menu:

Next, select the appropriate menu item to rename the pattern. The list will update to reflect your changes.


Movies

Wave59 contains many unique trading tools that might be a little confusing at first. In order to reduce the learning curve for these tools, many instructional videos have been created. These videos can be downloaded from the member's area of www.wave59.com, or can be accessed directly from within the software.

To run a movie from within the program, go to the Help menu and click on the "Instructional Videos" item. A list of all available movies will appear. Select the one you wish to view. If the movie is not available, you will be asked if you would like to download the movie from the internet. Most movies are around 400-500 kb, which can be obtained very quickly via DSL or cable. But if you've got a slow connection you might want to wait until after market hours to download videos as your charting will be interrupted during the process.

Wave59 will display the following screen shown above to help you download the movie. Simply select "Go get it" and the movie will automatically be downloaded and stored safely on your computer. Wave59 will remember where the movie was saved, so you'll only have to download it once.

If you'd like to see a movie on an indicator or feature that is not covered by what's available, you can send a request to wishlist@wave59.com.

(Once movies are playing, you can exit them at any time by pressing the ESC key)


Bar Spacing

Due to the need to support geometric patterns and stable screens, Wave59 charts plot price data slightly differently than other programs that traders are familiar with. Putting price bars X pixels apart, then scrolling as new bars arrive is handy but useless when it comes to pattern matching. The approach Wave59 uses is to plot a given number of days on the screen, then let price move across the chart as opposed to moving the chart to the left. This can result in some cramped bars if too many days are shown at a fast bar compression. One way to fix this problem is to simply set the chart up to plot fractional days. So rather than showing an entire days worth of 1 minute bars, you can elect to display 0.4 of a day at a time instead.


Predict

This indicator is designed to reduce the lag in any indicator through the use of an advanced forecasting algorithm. It is fast enough that it can be retrained on a bar by bar basis, which results in a truly adaptive output. First you must decide on the indicator that you would like to improve. This gets loaded into the "pred" parameter. Next, you must select three other indicators that the algorithm will use to forecast your original indicator. Although you may choose any inputs you like, best results can be obtained when the three inputs are all similar to what you are trying to forecast.

For example, if we were going to forecast a 10 bar momentum curve, we might use 8, 10, and 12 bar momentum curves as inputs. The idea of using different lengths on either side (8 and 12 bars) of what we are training against (10 bar) generally works very well.

Although this indicator trains blazingly fast when compared to other artificial intelligence techniques, it still does take some time, so be careful on long 1 minute charts!

A QScript user function has been provided that encapsulates what this indicator can do, so you are free to use it inside neural nets or your own custom indicators. Please see the QScript help file for more details.

Parameters:

x: The first input to use in making the prediction.

y: The second input to use in making the prediction.

z: The third input to use in making the prediction.

pred: Describes what we're trying to predict.

lkbk: The length of the training window, in bars.

ahead: How many bars ahead to try and predict "pred".

show_original: (true/false) If true, the original value of "pred" will also be plotted.

show_zeroline: (true/false) If true, a zeroline will be plotted. Useful for momentum style indicators.

pred_color: Sets the plot color of the prediction.

original_color: Sets the plot color of the original.

zero_color: Sets the plot color of the zero line.

pred_thickness: Sets the thickness of the prediction.

original_thickness: Sets the thickness of the original.


Zoom

By clicking Options - Zoom In, or Drawing Tools - Insert - Zoom, the cursor will change to a magnifying glass. Use it to select a portion of the chart to zoom in on. Once this is done, a new window will open to display the zoomed chart.

This new screen will continue to reflect changes made on the original, so it is a good way to zero in on important areas of the chart at critical times without having to change the scaling. Clicking and dragging anywhere on the zoomed screen with the mouse will allow you to scroll the magnifying glass and view different areas. Executing a right click will bring up a pop-up menu that will allow you to zoom in or out of the selected region.


Quote.com Troubleshooting

There are two common problems that occur when using Quote.com. The first happens when a trader upgrades to real time quotes from a delayed service, but does not experience the changes within the software. The second happens when a trader just can't connect to a Quote.com server.

Both of these problems can be resolved by navigating to the Wave59 installation directory (usually C:\Program Files\Wave59) and deleting two items:

ContinuumClient.ini

TEMP directory

These two items determine how Wave59 connects to the Quote.com network. This can be a problem if these servers go down, or if you need to connect to a server with different permissions (such as being enabled for real time updates). By deleting them, Wave59 will start from scratch the problems will usually disappear.


Data Window

Clicking Options-View Data Window from an open chart will bring up the data window:

This screen will allow you to view a detailed account of what is happening at a particular bar. Indicator values are also shown below the price data. The window will update as different bars on the chart are clicked with the data cursor. When the mouse button is not pressed, the data shown will correspond to the most recent bar on the chart.

By clicking on the two magnifying glass buttons, the font size will be increased or decreased. This is useful if your screen resolution makes it difficult to read the data values shown on the status bar at the bottom of the screen.


Gann Swings

This is Gann's Swing Chart indicator. It tracks different sized waves as they form in the price chart, and can be used to determine the current trend. If the last swing marked is a low, the market is currently in an up-trend. Conversely, if the last swing shown is a high, the market is currently in a down-trend.

Parameters:

Degree: (int) Specifies what kind of waves to track (in bars). A setting of "1" will track 1 bar long waves, and represents the smallest resolution available. As the number is increased, the smaller waves get filtered out and the wave size becomes larger in magnitude.

Thickness: (int) Determines how width of the line drawn on the chart.


Pattern Constuctor

The Pattern Constructor is the tool used to define custom Time and Price patterns. Unlike Geometric Patterns, a Time and Price pattern is found using price action itself, not an idealized shape or figure. For example, a head-and-shoulders formation is a Time and Price pattern, as it is a pattern created purely by price.

Once a pattern has been built in the Pattern Constructor, you will be able to tell Wave59 to locate similar patterns on price charts. An infinite number of important relationships can be used to define your pattern, including shape, price ratios, time ratios, space ratios, and even custom relationships using QScript.

Below are the various menu options available within the Pattern Constructor. Please view the tutorial at the bottom to see an example of how this all works.

File: New Pattern

File: Load a Saved Pattern

File: Save

File: Add One Swing

File: Remove One Swing

File: Build Pattern

Rules: Add Price Rule

Rules: Add Time Rule

Rules: Add Space Rule

Rules: Add Custom Rule

Rules: Add Trendline Rule

Rules: Clear All Rules

Tutorial


New Pattern
New Pattern (Pattern Constructor)

This creates a brand new Time and Price pattern to work with. You must specify how many price swings the pattern will contain:

Each price swing counts as one leg of the pattern. So a simple retracement pattern would consist of two swings - the first leg up, and then the retracement leg. Note that you always have the option to add or subtract swings once you begin designing your pattern, so you don't have to be exact in the beginning when creating a complex pattern.

The pattern will initially appear as a straight line on the graph. You can adjust it to look the way you like by clicking on the square dots that join the swings and dragging up or down with the mouse.


Load Saved Pattern

This loads a pattern that was previously saved - important if you are working on something complex and don't have the time to finish it in one sitting.


Save
Save (Pattern Constructor)

Saves the current pattern, including all custom rules. If you are working on many similar patterns, it can be a huge time saver to save a basic pattern, then just work from that point on each new variation.


Add One Swing
Add One Swing (Pattern Constructor)

This adds a swing to the end of the working pattern.


Remove One Swing
Remove One Swing (Pattern Constructor)

This deletes the last swing from the current working pattern. If any custom rules make use of this swing, they will also be deleted.


Build Pattern
Build Pattern (Pattern Constructor)

Click this when you are ready to convert your pattern into a form that Wave59 will be able to make use of. You will be asked to name your pattern, then the Pattern Constructor will check for errors and compile it into a useable pattern. Once your pattern has been built, you can load it onto a chart by clicking Patterns - Time and Price Patterns - Load T&P Pattern.


Add Price Rule
Add Price Rule (Pattern Constructor)

Once you've got the basic shape of your pattern laid out, you can add price rules to define various relationships between the swings. The following form will appear to help you set your new rule up:

If we want swing BC to retrace 61.8% of the first swing AB, we would set the rule to read: "Price of swing BC must be = to 0.618 times price of swing AB." Then we get to tell Wave59 how close is good enough for this rule to be triggered. The default is 10% of the value of the first swing. In this case, Wave59 would measure out swing BC, take 10% of that, and remember the value. As long as BC came within this many points of 0.618 times AB, the rule would be considered as satisfied.


Add Time Rule
Add Time Rule (Pattern Constructor)

Once you've got the basic shape of your pattern laid out, you can add time rules to define various relationships between the swings. The following form will appear to help you set your new rule up:

If we want the time from A to B to be equal to the time from B to C, we would set the rule to read: "Time of swing AB must be = to 1.0 times time of swing BC ." Then we get to tell Wave59 how close is good enough for this rule to be triggered. In the form above, the error is set to 5 bars, which means that the rule will be satisfied as long as the time periods from AB and BC are within 5 bars of each other.


Add Space Rule
Add Space Rule (Pattern Constructor)

Once you've got the basic shape of your pattern laid out, you can add space rules to define various relationships between the swings. Space takes both price and time distance into consideration, using the Pythagorean Theorem to measure the distance between two points on the price chart. As far as we know, WD Gann was the first to speak about these kinds of relationships. The following form will appear to help you set your new rule up:

Define your relationship the same way as for price rules. The difference here is that you need to specify how to measure time: bars or minutes. Depending on what kind of time compression the chart is using, this selection may give quite different results.


Add Custom Rule
Add Custom Rule (Pattern Constructor)

If you've got a particular relationship you would like Wave59 to search for that is just too complicated for the basic Price, Time, and Space wizards to handle, you can define the rule yourself using the Custom Rule form:

Your rule should be entered using QScript math syntax, and should evaluate to a true/false value. All math symbols (+, -, *, /, ^) will be recognized, as well as "and" and "or". You may reference various quantities with the functions:

Price(...), Space(...), Swing(...), and Time(...)

Price: returns the price of a single turning point. Ex: Price(A).

Swing: returns the difference between two turning points. Ex: Space(A,B)

Time: returns the difference in bars between two points: Ex: Time(A,B)

Space: returns the space measurement between two points: Ex: Space(A,B)

In addition to these four functions, there are others that will be recognized by the Pattern Constructor. You may type them in directly, or can access the complete list by clicking the book icon in the lower right hand corner. The functions are listed below. Most of them are identical to their QScript equivalents, so please consult the QScript help file if you need more information.

abs: absolute value.

acos: arc cosine. Angle in degrees.

asin: arc sine. Angle in degrees.

atan: arc tangent. Angle in degrees.

atan2: arc tangent where both arguments are given.

bar_to_min: converts a bar number to minutes.

ceiling: returns the smallest integer number not less than the argument.

cos: cosine. Angle in degrees.

exp: exponential of the argument.(E^x)

floor: returns the largest integer number not greater than the argument.

frac: returns the fractional portion of the argument.

int: returns the whole number portion of the argument.

ln: natural log.

max: returns largest value in a list. ex: max(2,3,4) = 4

min: returns smallest value in a list. ex: min(2,3,4) = 2

mod: remainder from dividing x by y. mod(4,3) = 1

round: Rounds the given number to the specified number of decimal places. round(3.14,1) = 3

sin: sine. Angle in degrees.

sqrt: square root.

tan: tangent. Angle in degrees.

to_double: Forces a value to be double precision.

to_int: Forces a value to be an integer.

to_string: Forces a value to be a string. (Reserved for future use)


Clear All Rules
Clear All Rules (Pattern Constructor)

Clicking this clears all rules added up to this point.


Patterns Tutorial
Patterns Tutorial (Time and Price)

This is a short tutorial that will describe how to construct and apply a time and price pattern to a price chart. Please follow along in Wave59 as you read this material. We need to bring up the Pattern Constructor to begin:

Step 1: Launch the Pattern Constructor

Click Patterns - Time and Price Patterns - Pattern Constructor to do this. The following window will open:

This is where you'll build your pattern. Notice there are two windows. The upper window is where the visual portion of the pattern will be constructed, while the lower window is where the various price/time/space rules will be defined.

The pattern we will build in this tutorial is a three wave zig-zag. Let's begin by clicking File - New Pattern. A setup screen will appear and ask us how many swings we want:

Enter "3", and click OK. We're now ready to begin designing our pattern.

Step 2: Define the Shape of the Pattern

Right now, your screen should look like this:

Each point A through D represents a turning point in the pattern. By clicking on the boxes below the letters and dragging, we can modify the pattern to look the way we want. Let's set up our zig-zag now:

There is one important point to note when setting up how a pattern looks graphically. Wave59 will use the information contained in the shape when it is doing real time pattern matching. So point D will always be above Point B, and Point B will always be above Point A.

The trick is when two points are at the same price. It doesn't occur here, but when it does, Wave59 will not look for equality between the points! Two points at an equal level means that you don't care which is higher or lower. If you really do want the points to be at the same price, you need to write a custom rule stating that.

Step 3: Define any Rules

Now that we've got our pattern, it's time to set up some rules. In this case, we want two relationships to be true of all patterns found. We want the swing A-B to be equal in price to C-D, and we also want A-B to be equal in time to C-D. Let's add the price rule first by clicking Rules - Add Price Rule:

Add the Time rule by clicking Rules - Add Time Rule:

You should see both of these rules listed in the lower window of the Pattern Constructor under the appropriate heading.

Step 4: Build the Pattern

Now we're ready to build our pattern. Click File - Build Pattern and name the pattern:

If all goes well, you'll get a "Success" message. Now we can load the pattern onto our charts.

Step 5: Load the Pattern on a Chart

First we must create a price chart to load the pattern onto. Then we go Patterns - Time and Price Patterns - Load a T&P Pattern. Select the pattern from the list, and set the settings appropriately:

We can tell Wave59 what size patterns to look for by adjusting the Start and Stop values in the Search range. Wave59 will mark all swings found in the given range using the appropriate color and line size.

The chart above shows the patterns found on a 1 minute S&P 500 chart. Note that since we're searching over a range of swings, Wave59 will occasionally display overlapping patterns. This is what happened at the beginning of the day. That's actually 3 different patterns of different swing sizes all being displayed on top of each other.

This pattern actually gave some excellent sell signals in this decline. The best patterns always contain important time and price relationships. Believe it or not, this particular pattern was the basis of an extremely expensive trading system marketed 10-20 years ago.


Load T&P Pattern

Once you've created a pattern in the Pattern Constructor, you're ready to load it onto a price chart. From an open chart, click Patterns - Time and Price Patterns - Load a T&P Pattern to bring up the following form:

All patterns available to Wave59 will be listed here. Select the one you wish to load, and click "OK". Next the settings form appears:

This form allows you to specify what size patterns to look for, as well as how to display the patterns once they're found. The search range refers to swing size, with the smallest possible swing having a strength of 1. Wave59 will check all swings within the range specified, and will plot any patterns it finds during its search. This means that overlapping patterns can and will be found!

Below is an example of what a pattern match looks like when the settings shown above are used:


Exchanges

Various astro tools require the geographical location of the exchange that the market is traded on in order to track intraday price cycles. Chicago and New York come pre-programmed, but this is obviously not a comprehensive list. If your market is on a different exchange, you may define it by clicking "Add an Xchg" when you are given the option to select an exchange. (This button appears on the various format forms for the tools where this is an issue: Natal Forecast, Ephemeris, Exchange Cycles, etc...).

The following form will appear when you click the button:

The known exchanges are listed in the box at the top. You may modify, add, or delete an exchange using the buttons directly underneath. Once you've added an exchange, Wave59 will remember it in the future, so this only has to be done once.

You will need to know the geographical latitude (west is positive, east is negative) and longitude (north is positive, south is negative) of the city in which the exchange is located.


Add Trendline Rule
Add Trendline Rule (Pattern Constructor)

Once you've got the basic shape of your pattern laid out, you can add trendline rules to define various relationships between the swings. The following form will appear to help you set your new rule up:

If we want three points to lie along a trendline, we would set the rule to read something like: "Swings A,B, and C must lie on a trendline." Then we must tell Wave59 how close the points have to be for this rule to be considered satisfied. When testing the points, the software will fit a line to the three swings using least squares linear regression.

The average error from this line will be measured, and if the error is less than a given percentage of the average swing price, the three points will be considered to have satisfied the condition. If the error is larger than the given value, the three points will not be considered as lying along a single trend line and the pattern match will fail. The default error threshold is 0.035%, and seems to work well on the S&P. Smaller error values will require a better fit of the regression line, and larger error values will allow sloppier fits.


Create a Parallel

Once you've got a drawing object set up how you like it, you can create an identical drawing object to it by clicking "Drawing - Create a Parallel", then clicking on one of the original object's hotspots. This is a quick and easy way to create parallel trendlines, etc.


Arrow

This drawing tool will place an arrow on the chart. This is not an analysis technique in itself, but a convenient place-holder that can be useful if you would like to send a chart to someone or need to mark a particular spot on a chart for further analysis. The size, color, and direction can all be customized, making it very easy to label and diagram your work.


Price_Channel

This indicator plots the highest high and lowest low over a given number of reference bars. This creates a buy/sell envelope that can be used to detect break-outs.

Parameters:

Lookback: How many bars before the current bar to examine when calculating the highest and lowest points.

Color: Plot color.

Thickness: Line thickness.


PercentR

This is Larry Williams' Percent R calculation. It's an oscillator similar in use to the RSI or Stochastics indicators. Buy signals are generated when the indicator crosses above 20 and sell signals are generated when it crosses below 80.

Parameters:

Length: How many bars to take into consideration when calculating the indicator.

Sellzone: The value of the sell zone to use.

Buyzone: The value of the buy zone to use.

RColor: Oscillator color.

ZoneColor: Buy-zone and sell-zone color.

Thickness: Plot thickness.


Horizontal Line

This indicator will plot a horizontal line on the chart. It will extend over the entire data set, and will not disappear if the chart is scrolled. The hotspot for this tool will always be at the far right of the price chart.

The plot thickness, style, and the price at which the line is drawn can all be customized by the user.


Show/Hide Drawing Tools

Sometimes charts can become very messy when using lots of drawing tools (especially when the Fibonacci Vortex is involved). Rather than deleting your drawing tools, you can ask Wave59 to hide them from view. The benefit is that they can be brought back instantly when you need them, without having to set them up all over again.

You can hide all drawing objects on a chart by clicking "Hide All" under the Drawing menu. Clicking "Show All" will restore them.

If you only want to hide (or restore) selected indicators, you can click on "Interactive Show/Hide", which will bring up the following form:

All drawing tools that are currently hidden are displayed in the list. Double clicking an item will restore it to the chart. While this form is up, the cursor will change and will be marked with a "hide". Clicking on any drawing object with this cursor will add it to the hidden list and remove it from the chart.

Clicking "Delete All" will delete every item in the list, just as if they had all been clicked with the garbage can cursor.

Important note: only active indicators will be saved with a chart. Hidden indicators will not be saved!


Declinations

This indicator plots planetary declinations on the chart, and is only available on daily (or longer) time frames. Think of declination as a measurement how far above or below the Earth a particular planetary body is. The graph will look something like this:

Each planet is represented by one of these lines. The blue line is Mercury. When two lines intersect each other, the planets have the same declination. Below is a graphic of the setup chart:

Planets:

This allows you to select which planets to plot on the graph. The line color of an individual planet may be set using the drop-down box to the right of the planet's name. If "Zero Line" is selected, a dotted line will be drawn on the graph at 0 degrees declination. This line appears in the graphic above.

Shift:

This setting will let you slide the declination plot from side to side. Positive values move it to the right and negative values move it to the left. A value of 0 reflects what is actually happening in the sky at the given date.

Options:

Select either geocentric coordinates (as viewed from the Earth), or heliocentric coordinates (as viewed from the Sun). If "Add all values up" is selected, the declinations of all selected planets will be summed, and this sum will be plotted instead.


Planetary Speed Lines

Planetary speed lines are very similar to Flux Lines, except their starting point can be set by the user. This results in a fan shape, rather than many separate support and resistance levels. Below is a graphic of the setup chart:

Planets:

This allows you to select which planets to include in the fan. The line color of an individual planet may be set using the drop-down box to the right of the planet's name. If "Use an average" is selected, the planetary values will be summed and this sum will be plotted instead of the individual lines.

Price Conversion:

Use this to set the conversion ratio between price movement on the chart and degree movement in the sky. The software will assume that 360 degrees (a full cycle) of planetary movement corresponds to whatever value is entered in the text box. Different instruments will require different values. All the comments made about scaling also to the number entered here.

Coordinates:

If "Geocentric" is checked, the planetary values used will be those as viewed from the Earth. "Heliocentric" will result in planetary positions as viewed from the Sun. "Moving Up" will result in a fan with lines moving upwards. If unchecked, the fan will move downwards. "To the Right" will result in a fan pointed to the right (or the future). If unchecked, the fan will move to the left of the chart (or the past).


Root 2 Growth Squares

This drawing tool is based on sacred geometry. A circle is drawn to contain the length of a user-defined line segment. Then a square is placed around this circle. A circle is placed around that square, and the pattern continues for a specified number of iterations. The square root of 2 governs the relationship between each new layer - the reason why this is a root 2 growth square. Below is an example:

In this case, our initial segment was the swing from the blue arrow to the red one. This is where we set our hotspots when creating the tool. As you can see, turning points formed as the market moved out of the right side of each square.

There are three quirks that need to be mentioned when discussing this tool:

1) Once the tool has been set up, it will maintain it's scaling even if the proportions of the chart change. So even though it might look like perfect squares and circles in the beginning, if you change your time frame or chart scale factor, the shape can be squashed or stretched appropriately. The location of the edge of the squares will always remain correct - only the shape will seem to change. The makes this tool less vulnerable to scale changes than regular geometric patterns.

2) Once the tool has been set up, the hotspots will be moved from the edge of the circle to the top left and bottom right corners of the first square. Any subsequent formatting will need to be done via the new locations of these hotspots. As always, holding down the SHIFT key will display all hotspot locations on screen.

3) As this tool is based on geometry, you need to remember to watch your scaling when you first apply it to a chart. Different scale factors will result in different termination dates for each square. This means that automatic scaling will give random results. Make sure to scale your charts properly!


Phase of Moon

This indicator plots the phase of the moon on a chart. It requires at least daily bars. Below is the setup form:

Show:

Use these check-boxes to select which phases of the moon to include in the plot.

Plot:

If "labels" is checked, vertical text will be written at the location of the selected phase. If "vertical lines" is checked, a line will be drawn at the location. Use the color box to select the font and line color for the plot.


Aspects

This indicator plots planetary aspects on the chart. An aspect occurs when the difference between two planetary positions is a special value. For example, a square aspect is 90 degrees, and would happen if Mars were at 130 degrees and Venus were at 40 degrees. 130 - 40 = 90, so these planets are in square aspect at this time. Below is the setup form:

From this Planet...:

Aspects are measurements between two planets. Use this box to select the first planet to use in the calculation.

...to this one:

Select the second planet here. Note that you may choose between geocentric (Earth centered) or heliocentric (Sun centered) values separately, so taking an aspect from a geocentric to a heliocentric planet is perfectly legal.

Harmonic to Plot:

This setting determines which aspects will be plotted on the chart. For example, if the 4th harmonic is selected, a line will be drawn at 90, 180, 270, and 360 degree aspects between the planet. For more on harmonics, click here.

Plot Options:

Choose the color of the plot here, as well as whether to plot vertical lines, text labels, or both.


Logarithmic Spiral

This tool will take the distance between two user selected hotspots, then use this as the initial radius in a logarithmic growth spiral. This spiral is a geometric pattern, which means that it will give incorrect results on an improperly scaled chart! Below is the setup form:

Growth Ratio:

This parameter determines the growth rate of the spiral. In the chart above, the spiral is set to grow using the golden ratio PHI.

Plot:

Spirals can turn either clockwise or counter-clockwise. This panel allows you to toggle each spiral on an off, as well as change their colors.


Action Reaction Lines

This tool draws action reaction parallels. An initial trendline is created, then a second line is drawn parallel at a user-defined distance. After this point, the drawing tool will go through and create parallel trendlines to these two spaced at the same intervals. Three mouse clicks are required to set up the A/R Lines. The first two create the initial center line, and the third sets the first parallel line. All other parallel lines are filled in automatically after this point.

Below is the setup form:

Growth Multiplier:

This value determines how to draw the parallel lines. To keep them equally spaced, enter a 1. Anything larger will result in lines that are progressively farther and farther away.

Line Count:

How many parallel lines to draw.

Plot Options:

Width governs line thickness, and the color can be set using the drop down box.


Price Counter

This is a similar tool to the Bar Counter, except it counts price distance instead of time distance. Simply click on two points on the chart and the price distance between them will be plotted on screen. The setup form is below:

Multiply Price By is a multiplier that will be applied to the price distance before it is plotted. This is useful if you want to measure ticks instead of points. For example, the e-mini S&P has a tick value of 0.25. So there are 4 ticks to one point of price movement. If we wanted to measure the tick distance between a high and a low, we would apply this tool, then set our multiplier to 4.


Ellipse

This drawing tool plots an ellipse on the price chart. George Bayer was the first to write about using ellipses on price charts, and used them with great accuracy in the early 1900's. Below is the setup form:

Major Axis:

This setting determines how large the long axis of the ellipse should be. Note that this length can be specified either in price (points) or time (bars).

Minor Axis:

This setting determines how large the short axis of the ellipse should be.

Plot Options:

If Show Crossbars is checked, the major and minor axes will be displayed inside the ellipse. Width governs the line thickness. Tilt represents the slope (in degrees) of the major axis. This can be used to set the ellipse to rise at a predetermined rate. Alternatively, you may use the pointing hand cursor to set this value interactively.

Quick Calculator:

These two boxes can be used to quickly set up a relationship between the major and minor axis. George Bayer mentioned that his 6.5 inch ellipse had a major axis that was 3.14159 (PI) times as long as the minor axis. Fibonacci ellipses have also proven themselves as useful patterns to watch.

Interactive:

If this box is checked, the length of the major axis can be adjusted using the pointing hand cursor. Simply  select a hotspot with this cursor and drag to change the length of the major axis. The minor axis will also be adjusted to maintain the correct shape. If unchecked, the pointing hand will still work to rotate the ellipse, but will not adjust it's length.


PFE

This is Al Larson's Polarized Fractal Efficiency indicator. It measures how much price "wanders" going from point A to point B. The result is an overbought/oversold indicator.

Parameters:

Length: How many bars to take into consideration when calculating the indicator.

OverBought: The value of the sell zone to use.

OverSold: The value of the buy zone to use.

LineColor: Oscillator color.

ZoneColor: Buy-zone and sell-zone color.

Thickness: Plot thickness.


Price/Time Counter

This tool measures the distance between two points in price/time. To do this, price and time are considered to be one unit and a conversion factor is established to go from one to the other. Please see Rings of Price/Time for another tool that uses this concept. Gann used to call these kinds of measurements "Space". Below is the setup form:

Conversion determines how many points of price are worth how many points of time. The tool combines both into a single unit.

Color allows you to set the color of the tool. If Save as Default Color is checked, this color will be remembered for future use.


Offline Data

In addition to real time feeds, Wave59 can be used with Ascii or Metastock data. When this option is selected in the chart settings form, a "browse" button will appear next to the symbol box as shown below:

Use this button to select the data file you are interested in plotting. Below is the form that will appear:

Step 1 - Select Data Type

This box allows you to specify whether you wish to use Ascii or Metastock format. Note that if you are using intraday Metastock files, an hour add setting is provided. This will allow you to adjust the times in the file to local time. This is important because all of the astrological tools are based on the local time of your computer.

Step 2 - Select File

This box allows you to select the file you wish to plot and to manage your directories for the future. The current directory is displayed in the Current Directory drop-down box. To change directories, simply select another from this list.

Below this drop-down box is a list of all available files in the directory that correspond to the format selected in Step 1. Note that ascii files must end in ".txt", ".asc", or ".csv". Click the file you wish to plot and you'll see your choice reflected in Selected File.

If the directory your file exists in is not shown, you need to add it to the list using the buttons at the bottom. If you wish to add a single directory, use the Add Directory button. A standard windows dialog box will appear. Simply use it to select the file you wish to plot. The directory will be saved for future use.

If you wish to locate all directories that contain data of the chosen type, use the Scan for Directories button. In this case, Wave59 will scan your computer for all files of the selected type and add their directories to your list. This is a good thing to do when you first begin using offline data. It is not recommended that you scan for Ascii files, as too many directories will be returned by this approach.

The last button, Clear All, will delete all directories saved in the list. If you select this you will have to rebuild your directory choices using Add Directory or Scan for Directories before you will be able to plot any data.

Step 3 - Define Field Order

This step only applies to ASCII data files. Once you have selected your file, you must tell Wave59 how the data is arranged so that it may be read properly. This is done using the Ascii Wizard interface, which is described in more detail here.


Price Percentages

This is a technique that W.D. Gann discussed in his book 45 Years in Wall Street. Basically, you take a high or a low price and multiply it by various percentages to discover future support and resistance levels. For example, if we had a top at 98, we could multiply it by 0.25 (25%) to get 24.5. This value can then be subtracted from 98 to get our level at 98 - 24.5 = 73.5. This tool works very well on stocks if you can find the correct percentages to use.

Below is the setup form:

Ratios:

Add your percentages using this box. The numbers represent percentages, so enter 25 to get the 25% retracement. A value of 0.25 will result in an extremely small multiplier, so make sure you enter the correct 25 instead.

Options:

Set the color here, and check Show Labels to display labels next to the plotted support/resistance levels.


Indicator Templates

Wave59 has the capability to save groups of indicators together as a template. This provides a quick way to apply multiple indicators to a chart at once, without having to add and format each individual tool. All technical tools, neural nets, and qscripts can be added to a template. Drawing objects are not included in templates.

To create a template, create a chart and add your indicators to the chart. Then go File - Save Indicator Template to create your template. The template will consist of all tools on the chart at the time of creation. To load a template, go File - Load Indicator Template. Note that from this loading window, you may right-click any template to rename or delete it.


Zodiacal Systems

There are two major zodiacal systems that can be used when calculating the position of a planet. Tropical positions, as used by Western astrologers, place zero degrees at the Vernal Equinox. So when a planet is at 0, it is exactly at this spot. 180 degrees would be exactly opposite the Vernal Equinox. Sidereal positions, as used by Vedic astrologers, use the position of fixed stars (usually Spica) to define the zodiac.

Around 1700 years ago the Vernal Equinox and Spica were on top of each other, which meant that western and eastern astrology used the same planetary positions. But due to the precession of the equinoxes, the Vernal point has been slowly moving forward. This means that the degree values obtained from each of these systems are different. Currently, the difference is around 24 degrees. So in one system the Moon can be in Aries, while in the next it's in Taurus. Obviously, this can make a huge difference if you're converting planetary positions to price values because the numbers are different depending on which system you are using.

This has lead to all kinds of arguments about which system is correct, and the debates have been very heated. Both camps have presented good arguments to support their side. Even more important, both camps are able to use their zodiac systems in the practical world. Wave59 compromises on this issue by offering both tropical and sidereal positions where appropriate. Until now, the tropical zodiac has been the one primarily used by financial astrologers, so it's a good thing to experiment with sidereal positions as well.


Bradley Siderograph

This is a long term astrological forecast based on Donald Bradley's research as presented in his book, Stock Market Prediction, The Planetary Barometer and How to Use It. This forecast will not work on intraday charts. Below is the format page:

Plot Options:

These options govern how the forecast is drawn on the screen. Note that dot and dash line styles are only available with a thickness setting of 1.

Inversions:

These radio buttons tell Wave59 whether to plot the regular Bradley, or the inverted Bradley. The two curves are identical, except the inverted Bradley is just drawn upside-down. So the inverted will rise while the regular falls, and drop while the regular rises.

Multiplier for Long Terms:

The Bradley Siderograph is based on a combination of long term cycles and short term cycles. To bring out the longer term nature of the forecast, Bradley recommended multiplying the longer cycles by a factor of 3-5. Longer factors will create a smoother, slower moving forecast, while shorter multipliers will create a more noisy forecast.


Flower of Life

This is a pattern familiar to those who have studied sacred geometry. It is a pattern based on arranging circles of equal size in an interlocking pattern that results in a flower like formation. It has many interesting properties, and can be considered as a sort of base pattern from which many other patterns can be derived. There are a few books that discuss this pattern, one of the more interesting and bizarre being The Ancient Secret of the Flower of Life, Volume 1, by Drunvalo Melchizedek.

For trading purposes, this pattern can be used as a kind of support and resistance map for future swings. By setting the center of the pattern on one turning point, and the next hotspot (= radius of circles) on the next, a very interesting energy grid is formed. This is considered one of Wave59's experimental techniques, so the most accurate way of applying this is likely unknown at this time.

Below is a screen shot demonstrating one application of the Flower of Life:

The red arrows show the two hotspots selected for the pattern. Everything else on screen was plotted using just these two pieces of information. There's a lot of lines going here and there, but the market does seem to respect the ellipses created by this pattern.

Below is a graphic of the format page for this tool:

Harmonic: This determines how many petals to split the circle up into. The standard Flower of Life pattern is based on the 6th harmonic, but other numbers may be interesting to investigate as well.

Size: Determines how large the pattern should be. This pattern repeats over and over, so Wave59 needs to know how many circles to plot before stopping. Larger numbers give a bigger pattern, while smaller numbers give a smaller pattern. The circles themselves will always be the same size, as they are set by hotspots, but the number of circles in the pattern will vary based on the size setting.

Color: Determines the color of the pattern.


Balance Point Lines

This is a support/resistance technique designed to forecast potential turning points in the future. A picture of the tool is shown below:

This tool takes two swings, in this case A-B and C-D, then connects their midpoints to create a forecast line. The arrows on the chart show where the market reacted to this forecast line. To apply the tool to a chart, simply click on the four swing points in order from left to right. After the swing highs/lows have been selected, Wave59 will plot the balance point.

The format page for this tool is shown below:

Swing 1 Ratio determines exactly where in between the first two points (A and B on the chart) the line originates. 0.5 is halfway.

Swing 2 Ratio determines exactly where in between the second two points (C and D on the chart) the line will pass through.

Thickness determines how thick the line is.

Style allows different line styles. Note that dot and dash styles are only available with a thickness of 1.

Color sets the line color.


Trendlines

This indicator automatically places trendlines on the chart.

Parameters:

TFilt: This is a filter to keep flat trendlines off the chart. Trendlines will only be drawn when the two swing points defining the trendline are farther apart in price than this amount. Default is 0, which leaves everything except the totally flat trendlines.

Shift: How many bars to the right to displace the trendlines. A value of 0 places them exactly on the swing points. A value of 1 would shift them to the right by one bar. Shifted trendlines have reduced false signals, and give price more room to move. Default is 3.

DnColor: The color of the downward sloping trendlines.

UpColor: The color of the upward sloping trendlines.

Thickness: Trendline plot thickness.

Extend_last: If true, the last downward and upward sloping trendline will be extended to the right. As new trendlines come in, the chart will be updates so that the most recent lines are always extended.

Style: Determines plot style. Use these QScript constants: ps_solid (solid line), ps_dot (dotted line), and ps_dash (dashed line). Note that this parameter requires a Thickness value of 1 to work properly. Thickness values greater than this will result in solid lines.


Trident

This pattern is based on the concept that market swings tend to mirror each other in time and price. By measuring the distance from one swing to another and projecting forward from the most recent swing high/low, very accurate targets can often be obtained.

The chart above demonstrates this tool in action. Simply click on the first three swing points, and the software will draw in the 4th point and target level.


Adjusting Axis

You can adjust the price and time axes on the fly. Simply move your mouse onto the axis you wish to adjust, click the left mouse button, hold, and drag. The axis will be rescaled automatically as the mouse is moved. Note that rescaling the axis will change your chart scaling to manual.


Concentric Circles

This tool draws concentric circles on the chart based upon a user defined radius. Multiples of this initial circle are also drawn, and if the scale of the chart is set correctly, these circles can highlight important areas of suport and resistance.


Pyrapoint

Pyrapoint is a drawing tool based on Gann's Square of Nine chart. Using a single point in price and time, the Square of Nine can generate support and resistance levels into the future both on the time axis and on the price axis. Pyrapoint is a graphical way to represent all of these levels, and was first discussed by Don Hall in his book. Below is an example chart:

The setup form for this tool is shown below:

Significant Digits tells Wave59 how much of the price to use when computing the various levels. If the price of the SP was 1190.75, the square of nine would return different values when using a seed value of 119075, 1190, and 119. All are potential starting points on the square, but each will result in different lines. This setting determines how many digits in the number (starting from the left) are used in setting up the square.

Direction determines whether the levels are drawn up, down, or both up and down. It is automatically set when you select the hotspot, so you should not need to change this value very often.

Movement governs how W59 will navigate the square of nine when plotting it's levels. There are separate degree values for both the time targets and price targets. 360 degrees would be one full cycle around the square of nine from the starting location, 180 would be halfway around the square, etc.


Vertical Line

This indicator will plot a vertical line on the chart. It will extend from the bottom of the chart to the top. The hotspot for this tool will always be at the very bottom of the price chart. The plot thickness, style, and the date/time at which the line is drawn can all be customized by the user.


Ichimoku Kinko Hyo

This set of indicators was developed by the Japanese journalist Goichi Hosoda in the years before WWII. It is made up of five components, which look like this:

Note that the cloud is the area between the two leading Senkou lines.

Signals occur in the following ways. When the Conversion Line crosses over the Base Line, a buy signal is issued. If this is above the cloud, the signal is considered stronger. If it is within the cloud, it is considered less potent, and if below, then weak. Sell signals are the opposite. The cloud represents areas of support and resistance. If price drops into the cloud, the cloud is expected to act as support. If price rises into the cloud, then the cloud is considered as resistance. The cloud can also be used in this way to determine trend strength and direction. For example, price over the cloud represents a bullish situation, while price below it represents a bearish situation.

Parameters:

Conversion_Length: The lookback period for the conversion line. Default is 7.

Baseline_Length: The lookback for the base line. Default is 22.

Senkou_Length1: The amount the first senkou line should be displaced into the future. Default is 26. The second senkou line will be displaced by the baseline_length setting.

Baseline_Color: Color of the base line.

Conversion_Color: Color of the conversion line.

Lagging_Color: Conversion of the lagging chikou line.

Senkou_Color1: Color of the first senkou line.

Senkou_Color2: Color of the second senkou line.

Cloud_Color: Color of the cloud. The cloud is the area between the two senkou lines.

Show_Cloud: If set to true, the cloud will be show. If false, the cloud will be hidden.

Show_Lagging: If set to true, the lagging chikou line will be shown. If false, the line will be hidden.

Kijun_thick: The thickness of the kijun line (base line).

Tenkan_thick: The thickness of the tenkan line (conversion line).

Chikou_thick: The thickness of the lagging chikou line.

Senkou_thick: The thickness of the two leading senkou lines.


RD

The RD stands for "Resultant Degree", and represents the net tidal force applied to the Earth by all the other planets in the solar system. When used heliocentrically, it refers to the net tidal force that all planets apply to the Sun.

For more information on this calculation and it's implications, please refer to Chapter 11 in The Handbook of Market Esoterica.


Numbered Square Geometry

The Geometry menu item on the Numbered Squares module allows you to draw geometry on the square based on planetary positions. The planet dots must be displayed for this option to work. The planets to use must be selected via the option Geometry - Select Planets. Once they are selected, you may toggle on and off various geometrical shapes that these two planetary bodies will create. For example, if the Sun and Moon are selected, and the Squares geometrical pattern is chosen, the Sun and the Moon will be used to draw in squares on the chart.

In the chart below, this example has been plotted. The Sun is the red dot at 282, and the Moon is the yellow dot at 230. The two of them combine to create a square pattern on the chart, which will create resonance that can be used to time turns. For more information about this technique, please consult The Handbook of Market Esoterica, available in the Wave59 bookstore.


Price/Time Ratios

This tool will calculate an initial swing in the same way that the Price/Time Counter does, and then will calculate a second measurement as a percentage of the initial swing.

In the chart above, our initial swing was from the first low to the high. This distance was calculated to be a value of 21.002 when measured in price/time. The next swing, starting at the high and running to the second low, measured out to a value that was 223.8% as large as the initial swing of 21.002. The calculations are identical to the Rings of Price/Time or the Price/Time Counter, with the exception that we are looking at ratios between two swings in this case.

If the third hotspot on this tool is dragged into the future, the tool will lock onto the most current high or low of the bar and will update dynamically in real time. So if the tool is snapped to the low of the current bar, it will continue to float with the low of each bar that gets formed in the future, and the ratios will update accordingly.


Rectangle

This tool plots a rectangle on the chart. Below is the format box:

Colors: There are two parts to a rectangle: the edge, and the inside. Each can have a different color.

Edge Thickness: This setting determines how many pixels thick the edge is drawn.

Fill Style: These radio buttons determine how the rectangle should be filled in. It can contain a clear inside portion, a solid inside portion, and a number of styles in between.

Corner1 and Corner2: These settings determine exactly where to place the corners of the rectangle in price and time.


Set Growth Factor

When the 1, 2, +, or - keys are pressed while a geometric pattern is selected with the pointing hand cursor, the pattern will expand or contract. The rate of expansion and contraction is governed by the setting found in this box. Small numbers mean small increments between key presses, and large numbers mean large increments between key presses. If you are having trouble fitting your pattern to market movements because you can't seem to get the correct size, the issue is likely a growth factor that is too large. The default value is 0.05.


Aspect List

When the ephemeris  is open, you may elect to display a list of all aspects that are close to being exact. Click Format - Show Aspect List to do this. All aspects within a user defined range will be plotted at the far right of the screen. The list is ordered with the most exact aspects at the top, and the most inexact at the bottom. To select which planets, which aspects, and what orb to use when computing this list, bring up the format page by clicking Format - Aspect List Settings.


Earik_TechnicalExpert

This indicator is a combination indicator. It is based on four other tools: the 9-5 Count, Exhaustion Bars 1, Ultrasmooth Momentum Divergences, and the Fractal Trend Index. Each individual component indicator is monitored for signals, and the Technical Expert tracks how many of them are currently in signal mode. So if the TechincalExpert indicator shows a value of 2, it means that 2 tools are in sell mode. If the value is -3, it means 3 tools are in buy mode. So read it as if it were an overbought/oversold indicator like Stochastics. Below is an example chart:

The TechnicalExpert is shown at the bottom. It is set up so that it plots in red when the count is 2 or higher (sell signals), and plots in blue with the count is -2 or lower (buy signals). Note that the range is -4 (all four indicators buying) to +4 (all four indicators selling). Values of -1 to +1 are generally ignored. Values of +/- 2 are considered medium strength signals, and will be the most common signals posted (as you can see on the chart). Values of +/- 3 or 4 are considered to be strong signals. A +4 sell signal is shown at the far right of the chart above.

This tool will not be as accurate as if you were reading all four indicators manually (no computer can replace the human brain in that regard), but it is very good at giving a quick and easy reading of the current technical situation. It also replaces four indicators with one, which is a help on messy charts.

Parameters:

Life: This value determines how long a signal remains in memory. It is extremely rare for all signals to occur on the same bar, so the TechnicalExpert will remember them for a specific length of time. The default value is 10, which means a signal will remain active for 10 bars. All four indicators would need to signal within this period in order for the indicator to post a value of +4 or -4.

Thresh: Where the dotted threshold lines are drawn, and where the line color changes take place. Default is 2.

ShowThreshZones: If true, the dotted threshold lines will be drawn.

Thick: Line plot thickness.

NeutralColor: The color of the signal line when it is below the sell threshold and above the buy threshold. These levels represent no signals.

BuyColor: What color to draw the line when it is in buy mode (equal to or below Thresh level).

SellColor: What color to draw the line when it is in sell mode (equal to or above Thresh level).

ZeroColor: What color to draw the zero line.


Drawing Object Inspector

This tool, found by clicking Drawing - Drawing Object Inspector, from an active chart, allows you to sort through all the drawing objects on the chart and adjust, move, format, or delete them individually. This comes in handy when there are so many drawing tools applied to the chart that the hotspots overlap and it becomes difficult to select the correct tool using the regular methods.

When launched, the inspector will display a window similar to the following:

All of the tools displayed on the chart will be shown in the list at the left. As you click each drawing tool, it will be shown on the chart while the other tools are hidden. This will allow you to choose the correct tool to manipulate. After you have highlighted your tool, use the buttons at the right side to perform specific actions. When one of those buttons is clicked, you will be returned to the chart where you can manipulate the drawing tool appropriately. After you are done, simply change cursors (data cross cursor, big hand, etc), and all the other drawing tools will reappear.


Aroon

Chande's Aroon Indicator, which consist of two lines. Interpretation is similar to the SmartMoney Index. When the bullish line (green) is above the bearish line (red), the market is in an upward trend. When the bearish red line is above the green one, the market is in a downward trend.

Parameters:

Length: Look-back period to use when calculating the Aroon lines.

Up_Color: Plot color for the Bullish Aroon line.

Down_Color: Plot color for the Bearish Aroon line.

Middle_Color: Plot color for the zero line.

Line_Width: Plot thickness.