PriceCatch-Main is the script that does heavy-lifting. It runs on the upper pane in your chart. Two waves are plotted on the chart to study price action and to get a sense of the likely direction of price. The waves are Fast Wave and a Macro Wave. Fast Wave gives short term price action information and Macro Wave gives information about the major trend.
The image on left shows the Fast Wave. The Wave consists of two lines; Red and Blue. When price is rising red line is on top and blue at the bottom. If the "Fill Fast Wave" option is selected (which is recommended), then when price rises, the wave is filled with green colour. When price slows down fill colour is yellow. When price is falling, fill colour is red. When a crossover of red line over blue line seems likely, then fill colour is set to aqua.
When you see yellow colour in the Fast wave after a price rise, it means that a slow down or a reversal is likely. When yellow colour is filled but the red line does not cross below the blue line, then it means that the price is consolidating and could head up once again (Image with the circled area). If the red line crosses under the blue line, then you might want to become alert as the price might slip further (Bottom right image). It is recommended to read the Fast wave signals in conjunction with Macro wave.
The image on left shows the Macro Wave. The Wave consists of two lines; Red and Blue. When price is rising red line is on top and blue at the bottom. When the wave colour is filled with Blue, it means that price is in uptrend or likely to go into an uptrend. On the other hand, if the wave is filled with red colour, then a downtrend is active or price is likely to go into a downtrend.
When you see a red wave, it is recommended not to initiate a buy trade. If the red line crosses under the blue line, then the possibility of price slipping down is very likely. When a crossover of red line over blue line occurs, then it could signal trend reversal and price could begin to move up.
PriceCatch-Sub is the supporting script and runs on the bottom pane in your chart. It also contains the Fast Wave and Macro Wave and the difference is that it plots Heikin-Ashi candles. Heikin-Ashi candles are known to filter out market noise and many traders prefer to view Heikin-Ashi candles to help them stay in a trade longer. Furthermore, reading the pattern of Heikin-Ashi candles and Japanese candles together will help you to take an informed decision about an entry or an exit of a position.
PriceCatch Trading System is trialware. Upon request, access will be given. You can then try the System for 15 days to see if it works for you. With the paper-trading feature available in Tradingview, you need not risk your capital while trying PriceCatch Trading System. Once you are convinced, you can opt for our very affordable subscription plans.