The 34ema Wave
The Wave as I call it is my bread and butter and knife. It’s at the heart of how I analyze the markets and the way I choose the correct strategy to enter all my trades.
I certainly did not invent exponential moving averages, nor the 34 setting (that’s 100% Fibonacci) but the way I use them on a high/low/close setting and clock angles to measure market cycles (didn’t invent those either but learned of those from Charles Dow) is all me. I can’t say there is any other indicator out there that will identify market cycles on any time frame and in any market.
I don’t say this to brag nor to “lay claim” to the study…heck if i wanted to do that I would have named it after myself which seems to be the trend with studies nowadays…and I actually for a short time I tried calling it the “RCI” because traders would confuse my referring to the Wave with Elliot Wave. But “RCI” (Raghee’s Cycle Indicator) was just not something that rolled off the tongue and I’ve been calling my study the Wave for so darn long that I couldn’t ever get the hang of the name change.
I put this tool together at the urging of a student and we experimented, laughed, cried and broke more than a few keyboards in the process of testing the Fibonacci series to 144 and figuring out lookbacks, and moving average settings, and angles…I shared these settings and ideas in my first book back in 2004 – at this time I had been using this tool for over a decade.
I see that lately there are a lot of references to market cycles and can’t help but think that Charles Dow’s work is again finding a new audience. I see the 34ema on the high/low/close being used a lot too and that makes me smile.
The Wave is designed to work with any trading strategy you use. What the 34ema on the high/low/close will do for you is allow you to identify when to use your trending following, tend reversal, momentum, or rangebound entry strategy. The Wave is going to tell you the market cycle and whether you trade chart patterns, support/resistance, Elliot Wave, Fibonacci, anything!! your will know what to do at the decision levels of your analysis.
…and more about my trading tools
Download the updated “GRaB” 2.0 MT4 plug in …
Get full-featured “GRab” charts and the entire EZ2Trade Software v3.0 Suite for eSignal
Download a 21-day trial of Autochartist.
My Wave (Raghee’s Cycle Indicator) and Market Cycles
My Market Pulse
Lazy Days Lines
Raghee Horner is a private trader and author based in South Florida. She began experimenting with market timing and charting analysis in 1989 at the age of 17... (More)
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