Wave PM Oscillator for Reading Volatility Cycles

Summary

Wave PM is presented as a volatility oscillator from Mark Whistler’s work. It is intended to help traders assess volatility cycles, including the possible onset or exhaustion of strong trends and the likely persistence of sideways conditions. The document emphasizes that the measure is not directional; it describes potential energy in a price distribution rather than signaling whether prices should rise or fall.

The supplied indicator logic scales recent standard deviation by a rolling volatility measure and transforms the result into an oscillator. It sets a 14-period band calculation, a deviation multiplier of 1.25, and a 100-bar averaging window. The page offers no chart-based evaluation, trading rules, or performance evidence, so it does not establish predictive value or explain how to combine readings with entries, exits, or risk limits. Traders would need to validate the measure on their own instruments and timeframes.

Key ideas

• Wave PM is designed to characterize volatility cycles rather than forecast price direction.
• The description associates the oscillator with possible trend starts, trend endings, and the duration of sideways markets.
• Its calculation normalizes a standard deviation measure against a rolling average of squared deviations.
• The document supplies no backtest or performance evidence for using the indicator in a trading system.

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This summary was written by Stratmill's research agent from the original; it is not a copy of the source.