Hilbert Sine Wave Support and Resistance

The Hilbert Sine Wave Support and Resistance indicator provides dynamic price levels based on John Ehlers' Hilbert Sine Wave to identify cyclical turning points in the market.

Usage

The Usage section focuses on identifying potential reversals when the sine wave components cross, signaling the formation of new support or resistance levels.

• Resistance Identification: A resistance level (red circle) is plotted above the price when the lead sine wave crosses below the sine wave, indicating a potential bearish exhaustion or cyclical peak.
• Support Identification: A support level (green circle) is plotted below the price when the lead sine wave crosses above the sine wave, indicating a potential bullish recovery or cyclical trough.

Traders can use these levels to set stop losses, identify profit-taking zones, or confirm entries within a trending or ranging market.

Details

This tool utilizes the Hilbert Transform to calculate the dominant cycle period of the price action. Unlike static support and resistance levels, these points are derived from the instantaneous phase of the market cycle.

The script smooths the input price and calculates the In-Phase and Quadrature components to determine the current phase angle. By comparing the Sine and Lead Sine (which is shifted by 45 degrees), the indicator identifies when the market is in a "trend" mode versus a "cycle" mode. The Support and Resistance levels are generated specifically when the cyclical phase relationship shifts, providing a reactive way to view market structure.

Settings

• Price: Determines the source data used for the Hilbert calculations (default is Close).
• Alpha: A smoothing constant used in the cycle calculation to filter out high-frequency noise.

FAQ

How do I use the Hilbert Sine Wave Support and Resistance?

You can use it to spot cyclical turning points. When a green dot appears, it signifies a cyclical bottom (support), and when a red dot appears, it signifies a cyclical top (resistance).

Is this indicator better for trending or ranging markets?

While it is derived from cyclic math, it is particularly effective at identifying the end of short-term cycles within both ranging and trending markets.

Where can I access this script?

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