Hilbert Sine Wave and Google (Daily chart)
Hilbert Sine Wave trend example today. Just a quick post to show how the Hilbert Sine Wave can be used to define the beginning and end of trends – any market, any time frame. This is Google (GOOG) on a daily chart.
For simplicity, I’ve just shown the support and resistance levels (red and white dotted lines) that are generated by the Better Sine Wave indicator. Trend moves occur when these levels are broken and follow through. The end of a trend move is typically signaled with a final cyclical turn.
On the chart above, the break into trend moves are signaled with a red or white dot – red for up trend, white for down trend. The end of the trend moves are signaled with the “END” text automatically printed on the chart.
In this Google example the up trend started with a break at $535 and continued until exhaustion at $714 – a 33% move up. You could have shorted from the end of the up trend at $714 or waited for confirmation of a down trend at $616. This down trend continued until exhaustion at $467 – a 24% move down from $616.
I get a lot of questions about the Hilbert Sine Wave – I don’t think I’m very good at explaining how it works. I’ve tried my best in these Hilbert Sine Wave videos. All I know is, I couldn’t trade without it.
Hope everyone shorted the Emini at the break below 1,375 highlighted in yesterday’s post. Good luck with your Emini trading.