Overview:
We're basically throwing a lot of parallel math at calculating derivatives of volatility to make predictions about trending vs. mean reverting states and what distributions are currently important for choosing pivots/targets/stops.
cci
Mean Absolute Deviation representation of the 1.25 standard deviation of any period of bollinger band. The 1.25 stdev is the empirical constant for the expansion or compression of any period of bollinger band. (known as a distribution) If a period is outside the +-100 value it is considered in trend. Inside is compression. The periods represented are 14 (pink,) 50 (teal,) 100 (blue,) and 200 (purple.)
wAVE PM
A normalized reading of how wide (exhausted, above 0.9) or thin (high potential energy, below 0.4) any period of bollinger band is. The periods and colors here match the CCI's periods and colors.
3D wave PM
A heatmap representation of the WAVE PM from periods 14-600 with red being above 0.9 and blue being below 0.4. The ACAT indicator takes the longest period that is overexpanded (above 0.9) and represents it's 1.25 standard deviation, which is then used as a trend defining pivot. If price is inside the Longest Over Expanded Period (LOXP) it will remain trading inside that band (compression) until that LOXP reverts below 0.7 (represented in green.) If price is outside the 1.25 standard deviation of the LOXP, it is considered to be in trend. If trend has been developed beyond the initial impulse, the 3.2 standard deviation of the LOXP (Thin pink line far outside the ACAT LOXP representation) is considered to be a HARD brick wall for price and will almost always reject from it.
ACAT
Automatic representations of the longest overexpanded period (0.9 on the wave PM) and the longest compressed period (0.4 on the wave PM.) If Price goes inside the pink band (the 1.25 of the LOXP) it will remain in that band until compression completes (LOXP returns below 0.7.) The CLCP (the blue band) can be used as a swing low/high for entries and is considered a reliable sideways moving range. The green jagged lines outside of a clcp are the 3.2 standard deviations of that period, representing the final resistance before a trend breaks out from compression.