By today, the number of various indicators is so large that is very difficult to revise them all or even follow their occurrence in the market. This situation was caused by the simple reason that for convinient trading traders use not only the calculation algorithms, but all other possible innovations as well. And they are all used. This variety includes color signals, the imposition of one indicator to another, beeps and the capital calculation formula.

Using different basic indicators and algorithms of prices calculation, many new indicators are created. In other words, everything is done to ensure that people would come closer to the so-called "The Holy Grail". The TradeWave indicator can be called such an example. If you look on its characteristics and reviews in the Internet, you will find a lot of distinctive comments on this indicator. You can even find phrases such as "Super profitable". Therefore, we believe it would be better to look at this indicator precisely.

The calculation of this indicator is simple. This indicator indeed is the oscillator, however it has two moving average MA-10 and MA-21 and four levels of - 60.53, -50 , -60 . The TrendWave indicator works on the same old principles. When the fast moving crosses the slower one in the overbought or oversold area, the signal to open an order is guaranteed. When it happens this indicator sends a ring-shaped signal. The blue means to buy, the yellow one is for sale.

As we can see, this indicator looks similar to the well-known Stochastic Oscillator. But there is the difference between them. The stochastic does not generate signals and it works in didderent way as well. 

Let's look at the TrendWave indicatore more carefully.

Thus, the picture below shows that this indicator generated several signals throughout the last year. This is the intraday chart. We chose different intervals to form a full perspective and further this indicator is taken in shorter time intervals. On the intraday chart there are too few signals to rely on them. Their number is few because the indicator does not reflect all significant long-term currency price movement. In this case there are two options to solve this problem.

 1. Change parameters 10 and 21 into a lower position. Then the indicator will be more sensitive.

 2. Reduce the levels to the required value until the MA will not cross each other in zone levels. Indicator will not generate a circle signal, but you can use this value. 

The image shows unrealized signals. They are marked with crosses. If you fix the indicator for them, with no extra indicators then customization and efficiency will be much higher.

The image gives the hourly interval for the same graph. As can be seen, the efficiency has decreased. Only two signals out of seven are relevant. And this is very bad. Moreover only the last signal can be considered as essential and justified. And this example is not a made up example but the existing situation in the market today. Here, I would like to note one significant factor. In this indicator description, the argument of the lack of redrawing is usually considered as a positive factor. But we cannot agree with it. In fact an indicator that redraws the signals, indicates that "this false alarm". But the TrendWave indicator does not do it, as many other indicators do. If the signal is generated, it will not be redrawn, the system will simply draw another one. In fact, the principle is the same.

And finally, the 15 minute interval graph. We purposely noted the significant movements and indicator signals. There are only eight numbers. Three of them are significant price movement (marked with crosses), the indicator does not generate; one is false, and only four can be used for orders. But every trader should decide by himself should he open the order, or not. As it is the 15 minute interval only, the capacity for movements is not so large.

Taking into consideration and summing up everything what is metioned above, one can draw a simple conclusion. TrendWave indicator is the usual standard indicator that is unlikely to be effective if it is used alone in the online trading. And it will not bring any excessive profits, that is why you can use it only as a guiding or confirming indicator.