Understanding the Signals

WiSE provides alerts on two-legged pullback status, enabling you to identify more than 16 different price action signals — second entries, higher lows, lower highs, and failed second entries (traps). It's based on Mack's adaptation of Al Brooks' original technique.

The core signals

WiSE marks signal bars directly on the chart:

• 0 — New high / new low. When a new high is followed by a higher high, WiSE labels it zero (0).
• 1 — First entry. The first entry signal bar.
• 2 — Second entry. The second entry signal bar.
• H — Lower high / L — Higher low. Identified between the zero (0) and second entry (2) signals. In the right context these can also be used as entry points.

These numbers are displayed at signal bars because they provide crucial information for placing stop orders.

Challenged and failed entries

WiSE tests second entries (SE) for success or failure against your Profit Target setting:

• Successful SEs are marked (2).
• If an SE doesn't reach the profit target and then breaks the prior bar in the opposite direction, it's marked challenged (c).
• If it then breaks the implied stop behind the SE signal bar, it's marked failed (x).

Color coding

• Grey symbols — hidden signals that were filtered out based on your settings.
• Yellow symbols — predicted signals. A yellow (2) means the second entry is expected as soon as a bar breaks the previous bar. When that happens, the (2) changes to green or red depending on whether it's a long or short entry signal.
• Green / red symbols — confirmed long / short entry signals.

By understanding these signals and their color coding, you can better analyze price action and make more informed trading decisions.

Who WiSE is for

• New traders learning to count second entries can display all signals before and after the second entry — feel every move and learn to count even without the indicator.
• Pro traders can set up WiSE to display only the signals they need, and use the flexible alerts system to get ready for the next trade.
• Algo traders can drive automated strategies from WiSE's signal plots — see using WiSE in automated strategies.

Next: cut the noise with filters.