[MT4版 DowWave Marker Version Upgrade] New feature "CET" enabled. Trend-following function based on MA and cluster analysis
■【MT4版】DowWave Marker Feature-Addition Version Upgrade Notice
Hello, this is Yume Oyaji.
【MT4版】DowWave Marker(DWM)has been upgraded, and we would like to inform you of the main changes.
In this upgrade,the trend-following専用独自「CET(Cluster Early Trigger)機能」has been added, along with
the new \"Execution Foot Moving Averages (MA) and Higher-Timeframe MA Display\"to support environmental recognition.
In this article, we will introduce the basic concept of trend following that beginners should know, and explain the mechanism of the new features that align with it.
■ What is the “ideal form” in trend following?
In trend following (going with the trend), what is the most advantageous pattern?
It isthe expansion from the price range (cluster) where orders are concentrated, i.e., the breakoutfrom the converged price area.
The market alternates between a period of energy buildup (convergence) and a period of rapid release (expansion).A price range where orders are concentrated (cluster)breaks, and the initial move where each period’s moving averages (MA) begin to diverge is the point to aim for.
This is the point recommended byGraville’s lawas the target.
■ How the new CET(Cluster Early Trigger)function works
The newly installed“CET(Cluster Early Trigger)function”is based on the above concept and is a system that mechanically determines conditions and displays a sign (CET mark) on the chart.
The internal logic is complex, but it primarily evaluates the following elements collectively.
①Mechanical detection of the price range where orders are concentrated (cluster)
From past price action, the system objectively identifies where orders are concentrated.
②Convergence of moving averages (MA) and perfect order
監視 short-, mid-, long-term three MAs on the execution foot, confirming convergence or detecting the “perfect order” that signals a trend
emergence.
③Follow-through based on Gravelle’s law and Dow theory
When the cluster breaks or MA conditions align, CET marks are issued in the trend direction in line with Dow Theory.
This helps mitigate uncertainty in discretionary decisions such as “where is the conscious price level?” and “when is the entry timing?”.
■ Added visualization of trend on execution feet and higher-timeframes with “Moving Average (MA) Display”
In this upgrade, to make chart environmental recognition more intuitive,the Execution-Foot MAis supported along withthe Higher-Timeframe MAto be displayed simultaneously.
■ Important characteristics (weakness) of CET you should know before use
Because CET is based on classic trend-following logic, it has many advantages, but there is a clear“market it struggles with”.
Please confirm the following characteristics to use the tool correctly.
①It performs poorly in ranging markets without a trend
CET is based on logic that works in trending markets, such as MA convergence and Graville’s law.
Therefore, in range-bound markets (where price oscillates around MAs), marks may appear frequently at low-conviction points.
②It may react to short-term false breakouts (false signals)
DowWave Marker(DWM)’s“waves in Dow Theory”are embedded, so
within a large price move,“temporary wave reversals”may also trigger marks if conditions are met.
Marks near strong resistance on higher timeframes may appear against the higher timeframe trend, so caution is required.
③To avoid making marks the 100% answer
Because of the above characteristics, it is not recommended to enter just because a CET mark is lit.
«Adopt marks only in the direction of the higher-timeframe trend»
«Skip in ranging markets»
Environment recognition filtering is essential.
Here is where the previously mentioned“MA Display for Execution and Higher Timeframes”comes into play.
Perform environment recognition with higher-timeframe MA and carefully select only CET marks with high advantage for use.
■ Other fixes and improvements
Code optimization has been performed to reduce operational load.
Other adjustments include minor display and operation improvements and bug fixes.
■ Details and Purchases
This version upgrade focuses on objectively and simply translating fundamental market theories—Dow Theory, Gravelle’s law, and Moving Averages—onto the chart.
Existing DWM users can upgrade to the latest version to use these new features.
Also, if you are considering adoption, we hope you will consider incorporating it into your trading environment.
Details on how each feature works and how to configure them are explained on the product page.