Merrill M-Wave Patterns with ZigZag Levels and Evolution Tracking
Summary
This indicator identifies five-point Merrill M and W wave shapes from turning points found by a modified ZigZag process. It plots the patterns and support or resistance levels at extreme points, then estimates possible price movement based on how patterns evolve within a wave family or mutate into another family. The description distinguishes evolution, where a pattern changes but remains in its family, from mutation, where it changes families. It also describes a counter intended to track model efficiency.
The documentation calls the pattern search preliminary and says the classic ZigZag search engine needs replacement; it attributes many detection errors to missed-pattern handling. All displayed patterns are treated as dynamic, and the prediction model is limited to sequential evolution or mutation. Counter statistics appear only after enough shapes have formed. No backtest results or evidence of predictive accuracy are supplied, so the projected movements and efficiency count should be treated as experimental indicator outputs rather than validated signals.
Key ideas
- The indicator detects Merrill five-point M and W shapes from ZigZag extremes.
- It plots support and resistance levels at detected extremes.
- Evolution changes a pattern within its wave family, while mutation moves it to another family.
- Predictions rely on sequential pattern evolution or mutation.
- The author describes the search engine as provisional and notes detection errors; predictive accuracy is not demonstrated.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.