The MESA Sine Wave study comprises two sine plots (Sine Wave and Lead Wave) to indicate if the market is in a cycle mode or in a trend mode.
The crossings of the "Sine Wave" and "Lead Wave" plots give clear advanced indication of the cycle mode turning points. When the market is in the cycle mode, a buy signal is given as the "Sine Wave" plot crosses above the "Lead Wave" plot. The sell signal is given when the "Sine Wave" plot crosses below the "Lead Wave" plot.
When the two plots resemble a sine wave, the market is in the cycle mode. When the plots start to wander, the market is said to be in the trend mode. In the trend mode, the "Sine Wave" and "Lead Wave" plots typically languish in a sideways pattern near zero, running parallel and distant from each other.
||The price used to calculate the MESA Sine Wave.|
||The number of bars in the dominant cycle.|
||Displays the sine of the measured phase angle over time.|
||Displays the sine of the phase angle advanced by 45 degrees.|
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.