Sine Wave
Plots a sine wave and a lead-sine wave based on the cyclic phase of price movement.
Usage
Use to confirm whether the market is in cycle or trend mode. When price follows the sine wave trade cycle reversals; when it diverges switch to trend-following.
Background
Introduced in Rocket Science for Traders, the Sine Wave Indicator plots the sine and cosine of measured instantaneous phase. In cycling markets price tracks the sine wave; in trending markets price breaks through the lead line signaling a mode change.
Formula
[ \text{Sine} = \sin(\text{Phase}) ] [ \text{LeadSine} = \sin(\text{Phase} + 45^\circ) ]