# NeoWave Logic

NeoWave Logic is an indicator on [Vela](https://vela.luxalgo.com/chart), our next-generation charting platform, written in Pine Script®.

Applies Glenn Neely's rule-bound wave discipline to confirmed swings: every adjacent wave pair is measured in price and time against a 33% similarity threshold, structures are labeled as :5 impulsive, :3 corrective, triangles including the neutral variant, or diametrics, and each label is then held to its post-pattern expectation until confirmed or invalidated.

- Indicator in the LuxAlgo Library, by LuxAlgo, published May 29, 2026.
- Access: free.
- Concepts: [NeoWave Logic](https://www.luxalgo.com/library/concept/neowave-logic/) (primary)
- Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=s7vh9ryokufox1o4wo6gsz3x
- Page: https://www.luxalgo.com/library/indicator/neowave-logic/

**NeoWave Logic** treats a wave count as a claim that must survive testing, not a drawing. Built on the stricter charting and proportion rules of [NeoWave](https://www.luxalgo.com/library/concept/neowave-logic/), it builds monowaves from the selected data points, measures adjacent waves in price and time, and labels only structures passing explicit shape rules: :5 impulsive groups, :3 corrective reactions, triangles including Neely's neutral variant, and the seven-legged diametric. Each label carries a drawn post-pattern expectation (a level to hold or clear within a time allowance) and the follow-through grades it.

## How to Trade the NeoWave Logic?

- **Degree break flagged**: a wave below the similarity threshold versus its neighbor in BOTH price and time cannot belong to the same degree: the comparison is discarded rather than rationalized, and an alert fires.
- **Structure labeled**: the expectation zone shows what must happen next: a :5's reaction must hold the retracement limit; corrective structures must be fully retraced within the time allowance.
- **logic ✓ / logic ✗**: confirmation validates the label; invalidation means the count is wrong and is abandoned rather than relabeled. Both resolutions carry alerts.

## NeoWave Logic Settings

- **Data Points** (default Close (wave chart)): Neely's closing-price wave chart, or High/Low for a conventional swing chart.
- **Wave Pivot Length** (default 8): bars each side confirming a turn; higher values read the logic at a higher degree.
- **Similarity & Balance Threshold %** (default 33): Neely's one-third guideline for waves of the same degree.
- **Impulsive Retracement Limit %** (default 61.8): the post-pattern extent test for :5 structures.
- **Time Allowance (x pattern time)** (default 1.0): the speed-test window for corrective structures.
- **Detect Triangles (incl. Neutral)** and **Detect Diametric Formations** (both on), plus display toggles.

## Frequently Asked Questions

### How does this differ from an orthodox Elliott impulse detector?

A tool like the [Motive Wave](https://www.luxalgo.com/library/indicator/motive-wave/) hunts the classic five-wave form and stops at the label. NeoWave Logic adds Neely's quantified proportion tests, structures outside the orthodox catalog, and (the defining piece) the requirement that post-pattern behavior confirm every label.

### Do the labels repaint?

No. A structure is recognized once the next swing locks its final pivot, so confirmed labels and their expectation zones stay put; the dotted in-progress leg updates live, and the newest solid wave-chart leg can still extend to a fresher extreme until the opposite swing confirms.

### What is a diametric formation?

Neely's seven-legged corrective structure: legs similar in price and time, widest in the middle (diamond) or narrowest (bow-tie). It sits outside the orthodox catalog, exactly why a NeoWave tool includes it.

## Related indicators

- [Elliott Wave](https://www.luxalgo.com/library/indicator/elliott-wave/) (Impulse): markdown at https://www.luxalgo.com/library/indicator/elliott-wave.md
- [Truncation](https://www.luxalgo.com/library/indicator/truncation/) (Elliott & Harmonics): markdown at https://www.luxalgo.com/library/indicator/truncation.md
- [Elliott Hard Rules](https://www.luxalgo.com/library/indicator/elliott-hard-rules/) (Elliott & Harmonics): markdown at https://www.luxalgo.com/library/indicator/elliott-hard-rules.md
- [Triangle](https://www.luxalgo.com/library/indicator/triangle/) (Elliott & Harmonics): markdown at https://www.luxalgo.com/library/indicator/triangle.md
- [Wave Degree Hierarchy](https://www.luxalgo.com/library/indicator/wave-degree-hierarchy/) (Elliott & Harmonics): markdown at https://www.luxalgo.com/library/indicator/wave-degree-hierarchy.md
- [Diagonals](https://www.luxalgo.com/library/indicator/diagonals/) (Elliott & Harmonics): markdown at https://www.luxalgo.com/library/indicator/diagonals.md
- [Motive Wave](https://www.luxalgo.com/library/indicator/motive-wave/) (Elliott & Harmonics): markdown at https://www.luxalgo.com/library/indicator/motive-wave.md
- [Wave Extension](https://www.luxalgo.com/library/indicator/wave-extension/) (Elliott & Harmonics): markdown at https://www.luxalgo.com/library/indicator/wave-extension.md

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Source: https://www.luxalgo.com/library/indicator/neowave-logic/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/