The Wave PM (Whistler Active Volatility Energy Price Mass) indicator is an oscillator described in the Mark Whistler’s book “Volatility Illuminated”.

The Wave PM was specifically designed to help read cycles of volatility. Read when a strong trend is about to start and end, along with the potential duration of lateral chop. By using concepts of probability and volatility, which anyone can understand, retail traders can learn to think about “risk” more like an institutional trader… With WAVE PM and an understanding of institutional risk-based trading, at home traders are able to start seeing volatility as opportunity, not an “out of the blue” hindrance.

Price Mass is not a directional oscillator it’s more of a gauge of potential energy left in the distribution cycle from Mark Whistler’s book “Volatility Illuminated”

Discussion about the indicator and other concept derivated took place here.

//PRC_Mark Whistler’s Wave PM | indicator
//27.06.2019
//Nicolas @ www.prorealcode.com
//Sharing ProRealTime knowledge

// --- settings 
BandsPeriod=14
BandsDeviation=1.25
Chars= 100
// --- end of settings 

if barindex>max(Chars,BandsPeriod) then

 Dev = std[BandsPeriod]*BandsDeviation
 Dev1 = square(Dev / Pointsize)

 temp=sqrt(average[chars](dev1))*pointsize
 if temp<>0 then
  temp=dev/temp
 endif

 if(temp>0) then
  iexp=Exp(-2*temp)
  returnNum= (1-iexp)/(1+iexp)
  osc= (returnNum)
 else
  iexp=Exp(2*temp)
  returnNum=(iexp-1)/(1+iexp)
  osc= (returnNum)
 endif
endif

return osc, 0.9 style(dottedline,1)