A momentum line: the difference between a fast and a slow average of price (SMA 5 − SMA 35 of the mid-price). When price makes a new extreme but the oscillator makes a weaker peak, the move is running out of fuel — that's "divergence".
A moving average drawn a few bars late, so it acts as a tripwire: a close across it is the trigger that converts a "setup" into a "signal". S2/S3 use the slower DMA(10,3) (10-hour average, 3 bars late) — it filters one-bar fake-outs. The wave-5 continuation system uses the faster DMA(5,2), because there you want to join a live move early, not confirm a dead one.
ATR = average hourly range. The continuation system takes profit 1.5 average-ranges from entry — big enough to matter, close enough to actually get hit (89% of the time in backtests). Fixed percentages and the classic wave-5 target-zone projection both tested worse.
0–100 gauge of how one-sided a wave-4 pullback was: high = light, orderly dip (trend healthy, wave 5 favored); below 35 = heavy selling (the crowd left — good news for a System 3 failure). Computed from the wave-4 vs wave-3 price×volume areas (VPR).
The price objective for wave 5: the length of wave 1, measured from the end of wave 4. When wave 5 reaches or overshoots it, the wave is "done" as far as the system is concerned. Drawn on the chart as the violet dashed line with a ✓BEYOND marker.
Average True Range as a % of price — how much a stock moves per hour on average. The Q-score wants ≥0.5% so the 4% target is realistically reachable within the 20-hour clock.
0–4 quality grade for System 2 setups (ATR, beyond-projection, big wave 3, extended 5th). The backtest edge concentrates in Q≥3 — that's the filter the app defaults to.
The wave structure is forming (wave 4 just ended or wave 5 is live) and the plan is pre-computed — but the DMA trigger hasn't fired. Watch, don't trade, until it flips to ✓.
Two legal ways to count the waves (the strict wave-4 overlap rule vs a relaxed one). The engine tries Original first, falls back to Alternate. Backtests show both work; the Q-score matters more than the count mode.
Distance to target ÷ distance to stop. This system runs ~0.5–1.5 — deliberately modest, because its edge is the ~80% win rate, not home runs.