TWave Indicator

NOTE: The TWave is a highly effective indicator that clearly illustrates order flow and the ongoing battle between supply and demand. It applies W.D. Gann's swing chart construction techniques to draw waves on the chart. The waves formed by the Gann Swing identify significant high and low points, helping to determine the price's trending direction. Since the waves are fractal in nature, the settings do not need adjustment, no matter the timeframe.

NOTE: When combined with the Wyckoff Buy/Sell Signals, it becomes an exceptionally powerful tool that provides a clear view for finding entries based on order flow and imbalances. The rules are simple and intuitive, making it easy to identify when a wave is likely to reverse.

Technical Details

Gann defined a swing using two bars. Swings are always drawn based on the High/Low of the bars.

Rules

• Two bars with higher highs signal the start of an upswing.
• Two bars with lower lows signal the start of a downswing.

Exceptions

• If the bar's low is lower than the previous swing's low, it initiates a downswing.
• If the bar's high is higher than the previous swing's high, it initiates an upswing.

Example 1: TSLA - daily

Example 2: /NQ - 1 min