Elliott Waves detector

The Elliott Waves detector indicator is a technical analysis tool designed to automatically identify and label Elliott Wave patterns based on zigzag price movements. It helps traders recognize potential trend developments and reversals by applying standard wave theory rules across various asset classes and timeframes.

Usage

The indicator identifies impulsive and corrective waves, labeling them from 1 to 5 on the chart. Traders can use these labels to determine the current state of a trend. A background signal or specific marker appears when a full 5-wave pattern is completed.

To increase the reliability of a detected wave, the tool provides Fibonacci level markers. If a wave's endpoint aligns closely with the plotted Fibonacci crosses, the pattern is considered more statistically significant. For example, in a bullish sequence, green crosses represent ideal Fibonacci retracement or extension zones; the closer the wave's pivot point is to these crosses, the higher the confidence in that specific wave count.

Details

The script utilizes a Parabolic SAR-based calculation to determine the underlying zigzag structure. By tracking the relationship between the SAR and price action, it identifies "alfa" points where price direction shifts. The logic then evaluates the relationship between the current wave and previous pivot points (back1, back2, etc.) to categorize the move as Wave 1 through 5.

Key implementation details include:

• Impulsive Detection: Validates Wave 3 as often being the longest and Wave 4 not entering the price territory of Wave 1.
• Fibonacci Integration: Calculates common ratios (1.618, 2.618, 0.382, 0.500, etc.) dynamically based on the preceding wave's magnitude to provide visual "fit" tests.
• Filtering: Users can choose to view the entire sequence or isolate only the final 5-wave completion for cleaner charts.

Settings

• Draw ZIGZAg line?: Toggles the visibility of the primary zigzag line connecting price pivots.
• All waves?: When enabled, shows labels for Waves 1 through 5. When disabled, only the completed 5-wave patterns are highlighted.
• Fib Levels?: Displays cross markers representing ideal Fibonacci targets for the current wave type.
• Base: Sets the starting acceleration factor for the underlying SAR calculation.
• Acceleration force: Determines the increment rate of the SAR.
• Max Acceleration: Limits the maximum value of the SAR acceleration.

FAQ

How do I interpret the colored crosses?

The crosses represent Fibonacci "fit" tests. Green crosses indicate where a bullish wave should ideally terminate to align with Fibonacci ratios, while bear trend targets are marked separately. Proximity to these crosses increases the trust level of the wave count.

Can this be used on lower timeframes?

Yes, the indicator is designed to work on all timeframes and supports multiple instruments including Forex, Stocks, and Crypto.

How can I access Elliott Waves detector?

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