The sine waves work in a way that similar to two de-trended moving averages. If price is trending they will not cross. So when they cross price has stopped trending. But that doesn't mean it will reverse. It could be a pause in the trend. And that's what often creates the little bounce and then break through the support/resistance level. And often the sine wave will get "ambushed".. say price is moving up to resistance and bounces very sharply off resistance. The sine wave has a lag due to its moving averages and will not detect this. So that's two examples of where the sine wave will not accurately signal the turn.
It's interesting how most people who would not use two moving averages for their trading decisions will use a sine wave. I got tricked by this and wasted a lot of time on it, and that's why I warn others. After that it's up to everyone to decide what works for them.
I've written about this on my blog and why I stopped using it in favor of using market profile and support & resistance levels.
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