The ABC Waves were built by a third party developer from an algorithm comprised of various
moving averages and oscillators. The idea behind the waves is to visualize the overall strength and
direction of a given market across multiple time frames. The Porsche Dots are a new and different way of
looking at the ABC waves. Instead of having the waves take up the subspace on your chart, you can now
apply them directly to the price action itself.
There are 3 separate waves that make up the ABC Waves. The “A Wave” measures short term relative
strength and direction of a market, the “C Wave” measures longer term strength and the “B Wave” plots
the same for a medium time period. There are also 3 corresponding “Porsche Dots”. The yellow dot is the
A wave, the blue dot is the B wave, and the magenta dot is the C wave.
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