CPR + Elliott Wave 3 Combo (Ultra Safe)

The Proper Elliott Wave 3 (Ultra Safe) indicator is a technical analysis tool designed to identify the third wave of an Elliott Wave cycle, which is typically the longest and strongest move in a trend. It combines pivot point analysis with momentum and trend filters to provide high-probability signals for trend expansion.

Usage

The indicator can be used to identify potential entry points during the start of an impulsive Wave 3. When the conditions for a Wave 3 are met, a "W3" label and a green triangle appear below the price bar.

Users should look for the following sequence:

1. The script identifies a Wave 1 low and high using pivot points.
2. It monitors for a Wave 2 retracement that does not exceed 50% of the Wave 1 range.
3. A Wave 3 signal is triggered when the price breaks above the Wave 1 high, provided that the trend and momentum filters (EMA and RSI) are also in alignment.

Details

The script uses several layers of confirmation to ensure the signal is "Ultra Safe":

• Pivot Logic: It establishes price structure by locating significant highs and lows.
• Fibonacci-based Filtering: It checks that the retracement (Wave 2) is relatively shallow compared to the initial move (Wave 1).
• Trend Filter: An EMA cross (Fast EMA > Slow EMA) ensures the signal occurs within an established bullish trend.
• Momentum & Volume: An RSI value above 60 and volume exceeding its 20-period moving average are required to confirm the strength of the breakout.

Settings

• len: Determines the lookback period for identifying pivot highs and lows used in wave calculations.
• emaFastLen: The period for the fast Exponential Moving Average used for trend confirmation.
• emaSlowLen: The period for the slow Exponential Moving Average used for trend confirmation.
• rsiLen: The period for the Relative Strength Index used to measure price momentum.

FAQ

How do I interpret the W3 signal?

The W3 signal appears when the price breaks the previous Wave 1 high while supported by bullish EMA alignment, high RSI momentum, and rising volume.

Can this indicator be used on any timeframe?

Yes, the logic is applicable to various timeframes, though it is most effective on timeframes where trend structures are clearly defined, such as the 15m, 1h, or Daily charts.

How can I access this tool?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.