The LSMA Wave Rider uses Least Squares Moving Average to make a fast oscillator ideal for scalping lower timeframe charts. Upper and lower bands contract during pullback and expand as it "booms". The perfect entry is the first crossover after bands expand. This is a great tool for entering trades.
The above image shows two examples of perfect entries: 1. The upper and lower bands contract getting tighter as it pulls back. 2. The upper and lower bands then begin to expand as it gets ready to fly. 3. The oscillator crosses over showing entry point. * Please note that this strategy may not work during major downtrends. *
Oscillator 2 is used to detect diversions. Reduce the number to pick up shorter diversions and increase to 200 to pickup larger diversions.
So.... it contracts on a down trend and expands on an uptrend, right?
veryfid
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@TK42DAN, Hi, it has been a long time since I have used this indicator but I do believe that is correct. It also works similar to bollinger bands in the way it contracts before big movements.
cryptoweedor67
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@veryfid, Many thanks for this indicator. I am still experimenting with it and it is working along with the LSMA. Much appreciated