Raghee Horner Wave

Raghee Horner uses a 34-period exponential moving average to create three lines: one with the closing price, one with the high, and the last with the low. This creates a wave.

This wave clearly illustrates market direction: upward, downward, or without a trend.

This indicator is simple and very visual. It is essentially used on Forex.

Depending on whether the price bounces off these levels or pierces through them, the meaning is easy to derive.

Example