What you see here is the Weis pip wave. The Weis pip wave shows how far in price a Weis wave has traveled through the duration of a Weis wave. The Weis pip wave is used in combination with the Weis cumulative volume wave. The two waves must be set to the same "wave size" and using the same method as described by Weis.
Using the traditional Weis method simply enter the desired wave size in the box "Select Weis Wave Size". In the example shown, it is set to 5 points. Each wave for each security and each timeframe requires its own wave size. Although not the traditional method a more automatic way to set wave size would be to use ATR. This is not the true Weis method but it does give you similar waves and, importantly, without the hassle of selecting a wave size for every chart. Once the Weis wave size is set then the pip wave will be shown.
I have put a zigzag of a 5 point Weis wave on the above bar chart. I have added it to allow your eye to get a better appreciation for Weis wave pivot points. You will notice that the wave is not in straight lines connecting wave tops to bottoms this is a function of the limitations of Pinescript version 1. This script would need to be in version 4 to allow straight lines. I will elaborate on the Weis pip zigzag script.
What is a Weis wave? David Weis has been recognized as a Wyckoff method analyst he has written two books one of which, Trades About to Happen, describes the evolution of the now popular Weis wave. The method employed by Weis is to identify waves of price action and to compare the strength of the waves on characteristics of wave strength. Chief among the characteristics of strength is the cumulative volume of the wave. There are other markers that Weis uses as well for example how the actual price difference between the start of the Weis wave from start to finish. Weis also uses time, particularly when using a Renko chart. Weis specifically uses candle/bar closes to define all wave action.
David Weis did a futures.io video which is a popular source of information about his method.
Cheers jayy
PS This script was published a day ago, however, I had included some links to the website of a person that uses Weis pip waves and also a dropbox link that contains the Weis wave chart for May 27, 2020, published by David Weis. Providing those links is against TV policy and so the script was hidden by TV. This is the identical script with the identical settings but without the offending links. If you want to see the pip Weis method in practice then search Weis pip wave. I have absolutely no affiliation. If you want to see Weis chart in pdf then message me and I will give a link or the Weis pdf. Why would you want to see the Weis chart for May 27, 2020? Merely to confirm the veracity of my algorithm. You could compare my chart (tradingview.com/x/tNeK79Fu/) from the same period to the Weis chart. Both waves are for the ES!1 4 hour chart and both for a wave size of 5.
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changed the way the ATR gets started.
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slight adjustment to initiation of ATR method. Noticeable in the first bars of a new IPO. Other changes possible to ensure it is harmonized with the zigzag script.
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Some script typos that affect larger waves were dealt with. Updated the wave time algo but still works poorly due to limitations of time functions in early versions of Pinescript. V4 will improve wave time. This script is identical to. This script is open so that you can verify the code for yourself: tradingview.com/script/3A3OLGGE-Weis-Wave-delta-Jayy-Dec-09-19/
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Added Weis wave volume divided by wave bar count back in. This is an Ord style calculation. However, Ord waves go from bar highs to low and the inverse. Weis waves are defined strictly by the differences in bar closes.
Thank you so much for putting this together. You rock.
jayy
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@Madcaptains, thank you very much. I really appreciate the 100 coins and the gesture. I recommend that you use the V4 versions. The links are below in comments I made to MPtrader33 on May 30. Message me if you have questions. jayy
Madcaptains
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@jayy, I’m using the versions you recommend below. They work much better than the first versions I found. Its great to get to use those tools as I study David Weis book. Thanks again.
jayy
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@Madcaptains, you are welcome. These scripts are works in progress but they are much easier to use and the output for the zigzag, in particular, is far superior.
Nikolipham
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awesome! thank you man!
tradeleblebi
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Jayy i just need green and red weis wave code. I wanna enter and exit with color changing can you please share with me simplified code ? I wanna code in python.
OlegDaze
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Hi, Jayy. Do you have a plans to add developing wave volume to your V4 script?
It would be very helpful in order to anticipate price movement
Attrition
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Hi Jayy is there a possibility to see/use the old version of this, was working really well for me and i had made a trading strategy with it that worked quite well.
Looked like this
jayy
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@Attrition, yes the version above is Pinscript V2 so that is the old version. There are some other versions as well. Tradingview will not let me erase them. So if this particular version is not the one you want check my other scripts. If there is a different version that you are looking for let me know. I will have some more questions to ask to track down the version. It is best to message me.
Lastly, there are the Pinescript version 4 scripts. The cumulative volume Weis wave looks the same but the dialogue box is different. The V4 Weis zigzag has a better presentation of numbers (horizontal ). You will find links to both scripts below in my reply posted on May 30. jayy
metixac
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This version is wonderfull. I use so much option 1 (weis wave volume) with option 2 (tick wave), to compare effort x result. I was wondering if is possible to make the option 2 like a box? In another works, repaint the last bar over all bars off wave. I will post a example in repply this message with a link... Again, thank you for this excellent script.