The indicator searches retracements. Retracement is a temporal movement of a price in the opposite (or sideway) direction from the current trend.

To my mind, the only dependence on the market is represented by waves. Retracement is a part of this movement. It helps to determine a start of a new wave.

The yellow line of the indicator is a signal one. Pending stop orders are placed on its level. We also added take profit and stop loss levels for your convenience. These levels are adjusted for EURUSD. Breakeven level = 30 points (300 points for 5 digit quotes).

If the price moves 100 pips or more from the entry point, the signal is false.

Parameters:

• Period_1 - calculation period 1
• Period_2 - calculation period 2
• showFridaySignals - show Friday signals
• slLevel - stop loss level
• tpLevel - take profit level
• barLimit - number of bars used for calculation