As you were learning about trading, you probably realized somewhere along the way that oscillators don't work in trending markets, that trends and oscillators don't mix. You might have even come to that conclusion after long and hard analysis. But if you thought that was the end of the story, you would be wrong. Further, it would be helpful if the equations applying to these modes point directly to those technical analysis indicators that can exploit these modes. Here, then, are two indicators you can use to identify and trade each mode, including code that you can program yourself.
Red bars show periods when that occurred, while blue bars are exit points.
By removing the cycle from the trendline and only looking at the cycle in the sinewave indicator, you can address both modes of the market without interfering with the other mode. You can do this with the new and improved version of the sinewave indicator, one that is adaptive and works to identify turning points in the cycle. This way, you can indeed combine trends and cycles. First, let's look at trends and modes individually, and find out what they're all about. Then we'll examine how they can be combined.