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Wavetrend

RatSignal Flow - Composite Momentum Scanner Short Description: Multi-layer momentum oscillator: Fisher Transform + WaveTrend + signal detection. Free from ratsignal.com — premium indicators coming soon. Find more details: ratsignal.com Full Description: 🐀 RatSignal Flow — Composite Momentum Scanner Professional multi-layer oscillator combining three independent momentum engines into one panel. Built by the RatSignal team — the same core signals powering our live 24/7 trading bots on crypto markets. Recommended timeframe: 15 minutes (works on all timeframes, optimized for 15m–4H). ━━━━━━━━━━━━━━━━━━━━━━━━━━━━ COMPONENTS ▸ Fisher Transform (cyan/orange line with neon glow) Ehlers' Fisher Transform scaled to oscillator range. Statistically detects price reversals earlier than RSI or Stochastic. Toggle glow effect on/off in settings. ▸ WaveTrend Oscillator (blue/orange dual line) Momentum system with dynamic fill between WT1 and WT2. Captures trend shifts with high sensitivity. Neon glow included. ▸ RSI+MFI Histogram (green/red bars) Volume-weighted momentum histogram. Green = buying pressure, Red = selling pressure. ▸ WaveTrend Cross Dots Large circles appear at WT1/WT2 crossover points for quick visual scanning. ━━━━━━━━━━━━━━━━━━━━━━━━━━━━ SIGNALS 🟢 Green Dot — Bullish EMA cross (EMA11 above EMA34) 🟡 Yellow X — Oversold reversal candidate (multi-factor: WaveTrend + RSI + MFI confluence) 🔴 Red X — Bearish EMA warning (EMA5 below EMA11) 🔵 Blue Triangle — Short-term momentum shift 🐀 Green Rat — LONG entry signal (zone-filtered composite — only fires from oversold) 🐀 Red Rat — SHORT entry signal (zone-filtered composite — only fires from overbought) Rat signals are strict and zone-filtered: LONG only triggers when momentum recovers from oversold territory, SHORT only from overbought. This dramatically reduces noise compared to standard crossover signals. ━━━━━━━━━━━━━━━━━━━━━━━━━━━━ HOW TO USE 1. Watch for 🐀 Rat signals as primary entry triggers 2. Confirm direction with WaveTrend position (above/below zero line) 3. Check Fisher Transform color for trend bias (cyan = bullish, orange = bearish) 4. Use the rsiMFI histogram for volume confirmation 5. Green/Yellow/Red markers add extra confluence layers 6. Overbought (60) and Oversold (-60) zones highlight when momentum is extended Works on all crypto pairs — BTC, ETH, SOL, and beyond. ━━━━━━━━━━━━━━━━━━━━━━━━━━━━ FREE — FOR NOW This indicator is 100% free. We're releasing it as a preview of the RatSignal suite. Premium indicators with advanced pattern detection, AI-powered signal filtering, and multi-timeframe confluence analysis are coming to ratsignal.com in the next few months. Follow @ratsignalcrypto here on TradingView and visit ratsignal.com to get early access. ━━━━━━━━━━━━━━━━━━━━━━━━━━━━ ⚠️ This is not financial advice. Past performance does not guarantee future results. Always use proper risk management.
Pine Script® Indikator
von ratsignalcrypto
Thermal Momentum Gauge [JOAT]Thermal Momentum Gauge Introduction The Thermal Momentum Gauge is an open-source institutional-grade pressure and volatility monitoring system that combines market pressure measurement, volatility temperature analysis, volume steam detection, and multi-factor explosion identification into a unified oscillator. This sophisticated system integrates multiple proven momentum methodologies to identify high-probability explosive move conditions where pressure, temperature, and steam factors converge. The indicator is designed for traders who understand that explosive market moves occur when multiple pressure systems align simultaneously. By synthesizing RSI pressure, WaveTrend momentum, Money Flow Index analysis, Stochastic pressure, ATR temperature, Bollinger Band width, volume steam detection, and confluence scoring, this tool helps identify structural market explosion points with thermal precision. Why This Integration Exists This indicator combines seven distinct pressure and volatility measurement frameworks that complement each other: Multi-Component Pressure System: Combines RSI, WaveTrend, MFI, and Stochastic RSI for comprehensive pressure measurement Thermal Temperature Analysis: Uses ATR and Bollinger Band width to measure market volatility temperature Volume Steam Detection: Analyzes volume spikes and directional volume pressure for steam identification Explosion Detection Engine: Multi-factor confluence system that identifies when all pressure systems align Momentum Confirmation System: Ensures signals occur at genuine turning points through momentum analysis Pressure Zone Classification: Defines thermal zones from extreme oversold to extreme overbought Signal Filtering System: Prevents overlapping signals while maintaining precision timing Each component addresses different aspects of market thermal dynamics. Pressure measurement reveals directional bias, temperature analysis shows volatility energy, steam detection indicates volume explosions, and confluence scoring quantifies setup quality. Together, they create a comprehensive thermal view that traditional single-dimension momentum indicators cannot provide. Core Components Explained 1. Multi-Component Pressure System (0-100 Scale) The system combines four pressure measurements for comprehensive analysis: RSI Pressure: RSI Pressure = RSI(close, rsi_length) // Standard 0-100 scale WaveTrend Pressure: ESA = ema(hlc3, wt_channel_length) D = ema(abs(hlc3 - ESA), wt_channel_length) CI = (hlc3 - ESA) / (0.015 * D) WT1 = ema(CI, wt_average_length) WT Pressure = (WT1 + 100) / 2 // Normalize -100 to 100 → 0 to 100 MFI Pressure: MFI Pressure = MFI(hlc3, mfi_length) // Money Flow Index 0-100 Stochastic RSI Pressure (Optional): Stochastic RSI = Stochastic(RSI(close, rsi_length), stoch_length) Stoch Pressure = sma(Stochastic RSI, 3) Combined Pressure: Total Pressure = (RSI + WT + MFI + Stoch) / 4 // With Stochastic Total Pressure = (RSI + WT + MFI) / 3 // Without Stochastic 2. Thermal Temperature System (0-100 Scale) Measures market volatility energy through dual methods: ATR-Based Temperature: ATR Percentage = (ATR(atr_length) / close) * 100 ATR Temperature = ATR Percentage * temperature_multiplier Bollinger Band Width Temperature (Optional): BB Basis = sma(close, bb_length) BB Deviation = bb_multiplier * stdev(close, bb_length) BB Width = ((BB Upper - BB Lower) / BB Basis) * 100 BB Temperature = BB Width * 5 // Scale to 0-100 Combined Temperature: Temperature = min((ATR Temperature + BB Temperature) / 2, 100) // With BB Temperature = min(ATR Temperature, 100) // Without BB 3. Volume Steam Detection (0-100 Scale) Analyzes volume explosions and directional pressure: Volume Steam Base: Volume Ratio = volume / sma(volume, volume_length) Steam Base = Volume Ratio * 50 Volume Delta (Optional): Buy Volume = close > open ? volume : 0 Sell Volume = close < open ? volume : 0 Volume Delta = (Buy Volume - Sell Volume) / volume * 50 Combined Steam: Steam = min(Steam Base + abs(Volume Delta), 100) Steam Classifications: - Steam Burst: Steam > steam_threshold (default 80) - Extreme Steam: Steam > 90 - Volume Spike Direction: Bullish (close > open) or Bearish (close < open) 4. Explosion Detection Engine Multi-factor confluence system with momentum confirmation: Momentum Confirmation: Pressure Momentum = change(Total Pressure) Pressure Acceleration = change(Pressure Momentum) Momentum Shift = (momentum > 0 AND momentum <= 0) OR (momentum < 0 AND momentum >= 0) Confluence Score (0-5): Confluence Components: - Pressure Factor: Total Pressure > pressure_threshold ? 1 : 0 - Temperature Factor: Temperature > temperature_threshold ? 1 : 0 - Steam Factor: Steam > steam_threshold ? 1 : 0 - WaveTrend Extreme: WT Pressure > 80 OR WT Pressure < 20 ? 1 : 0 - Extreme Steam: Steam > 90 ? 1 : 0 Confluence Score = Sum of all factors (0-5) Explosion Conditions: Explosion = Confluence Score >= minimum_confluence AND (Momentum Shift OR abs(Pressure Acceleration) > 2) Bull Explosion = Explosion AND Total Pressure > 50 AND Pressure Momentum > 0 Bear Explosion = Explosion AND Total Pressure < 50 AND Pressure Momentum < 0 Perfect Explosion (Rare): Perfect Explosion = Confluence Score == 5 AND abs(Pressure Momentum) > 3 Perfect Bull = Perfect Explosion AND Total Pressure > 50 AND Pressure Momentum > 0 Perfect Bear = Perfect Explosion AND Total Pressure < 50 AND Pressure Momentum < 0 5. Thermal Zone Classification The system defines seven thermal pressure zones: Extreme Overbought: Pressure > 80 (Critical thermal level) Overbought: Pressure 70-80 (High thermal level) Neutral High: Pressure 55-70 (Warm thermal level) Equilibrium: Pressure 45-55 (Neutral thermal zone) Neutral Low: Pressure 30-45 (Cool thermal level) Oversold: Pressure 20-30 (Low thermal level) Extreme Oversold: Pressure < 20 (Critical thermal level) 6. Signal Filtering System Prevents overlapping signals while maintaining precision: Minimum Bars Between Signals = 8 Signal Filtering Logic: - Perfect signals take priority over regular explosions - Regular explosions are filtered if perfect signal occurred recently - Warning signals are filtered if explosion signals are active - Steam bursts are filtered to minimum 3 bars apart Visual Elements Thermal Pressure Wave: Main oscillator with thermal gradient coloring and glow effects Component Pressures: Individual RSI, WT, MFI, and Stochastic lines (hidden by default) Temperature Background: Heat map style background coloring based on volatility temperature Steam Burst Histograms: Volume spike visualization with directional coloring Thermal Zone References: Critical levels at 20, 30, 50, 70, 80 with neutral zone highlighting Explosion Markers: Diamond shapes for perfect explosions, triangles for regular explosions Warning Signals: Circle markers for approaching explosion conditions Pressure Meter: Visual gauge showing current pressure level with thermal gradient Dashboard: Comprehensive real-time display of all thermal components and status How Components Work Together The integration creates a thermal momentum analysis approach: Layer 1 - Pressure Measurement: Multi-component system reveals directional pressure across four dimensions Layer 2 - Temperature Analysis: Volatility measurement shows market energy and expansion potential Layer 3 - Steam Detection: Volume analysis identifies explosive energy release conditions Layer 4 - Momentum Confirmation: Ensures signals occur at genuine turning points, not random noise Layer 5 - Confluence Scoring: Quantifies setup quality by counting aligned factors Layer 6 - Explosion Detection: Identifies rare moments when all thermal systems align Layer 7 - Signal Filtering: Prevents overlap while maintaining precision timing Example scenario: Pressure reaches extreme oversold (Layer 1) with high temperature (Layer 2), volume steam burst (Layer 3), momentum shift confirmation (Layer 4), confluence score of 5 (Layer 5), triggering perfect bull explosion (Layer 6) with proper signal filtering (Layer 7). This represents maximum thermal alignment for explosive upward move. Input Parameters Pressure Settings: RSI Length: Period for RSI calculation (default: 14) WT Channel Length: WaveTrend channel period (default: 10) WT Average Length: WaveTrend smoothing period (default: 21) MFI Length: Money Flow Index period (default: 14) Stochastic Length: Stochastic RSI period (default: 14) Use Stochastic Pressure: Toggle fourth pressure component Temperature Settings: ATR Length: Average True Range period (default: 14) Temperature Multiplier: Sensitivity adjustment (default: 10.0) Use Bollinger Band Width: Toggle BB width temperature component BB Length: Bollinger Band period (default: 20) BB Multiplier: Bollinger Band deviation (default: 2.0) Volume Settings: Volume MA Length: Volume average period (default: 20) Steam Threshold: Volume spike multiplier (default: 2.0) Use Volume Delta: Toggle directional volume analysis Show Volume Spikes: Toggle volume spike visualization Explosion Settings: Pressure Threshold: Minimum pressure for explosion (default: 80) Temperature Threshold: Minimum temperature for explosion (default: 70) Steam Threshold: Minimum steam for explosion (default: 80) Minimum Confluence Score: Required factors for explosion (default: 3) Show Explosion Warnings: Toggle warning markers How to Use This Indicator Step 1: Assess Thermal Pressure Check the main pressure gauge and current thermal zone classification in the dashboard. Step 2: Monitor Temperature Levels High temperature (>70) indicates market energy building for potential explosive moves. Step 3: Watch for Steam Bursts Volume steam bursts (>80) show explosive energy release with directional bias. Step 4: Check Confluence Score Scores ≥3 indicate multiple thermal factors aligning for explosion potential. Step 5: Wait for Momentum Confirmation Explosions require momentum shifts or acceleration to confirm genuine turning points. Step 6: Identify Explosion Signals Perfect explosions (diamond markers) offer highest probability, regular explosions (triangles) offer good probability. Step 7: Monitor Warning Signals Warning markers indicate approaching explosion conditions - prepare for potential signals. Best Practices Use on 15-minute to 4-hour timeframes for optimal thermal detection Focus on extreme thermal zones (<20 or >80) for highest explosion probability Perfect explosions are rare but offer exceptional risk:reward opportunities Temperature confirmation adds conviction to pressure-based signals Steam direction (bullish/bearish) should align with expected explosion direction Confluence scores ≥4 significantly increase explosion probability Warning signals help prepare for upcoming explosion opportunities Thermal zone transitions often precede significant price movements Indicator Limitations Thermal pressure can remain extreme longer than expected during strong trends Perfect explosions are rare - patience required for highest probability setups Temperature spikes during news events may create false explosion signals Steam bursts don't guarantee immediate price movement - timing varies Confluence scoring is mathematical, not predictive of future performance Component pressures may conflict, requiring interpretation skills Signal filtering may delay signals in rapidly changing market conditions Requires understanding of multi-factor thermal analysis concepts Technical Implementation Built with Pine Script v6 using: Multi-component pressure calculation with optional Stochastic RSI integration Dual-method temperature analysis using ATR and Bollinger Band width Advanced volume steam detection with directional bias measurement Multi-factor confluence scoring system with momentum confirmation Thermal gradient coloring system with glow effects and heat map backgrounds Anti-overlap signal filtering with priority-based signal management Real-time pressure meter visualization with thermal zone classification Comprehensive dashboard with component breakdown and explosion status The code is fully open-source and can be modified to suit individual trading styles and preferences. Originality Statement This indicator is original in its thermal momentum integration approach. While individual components (RSI, WaveTrend, MFI, ATR, volume analysis) are established concepts, this integration is justified because: It synthesizes seven distinct thermal and momentum methodologies into a unified system The multi-component pressure system provides comprehensive momentum analysis beyond single indicators Thermal temperature analysis combines volatility measurements for energy assessment Volume steam detection adds explosive energy context to momentum signals Multi-factor confluence scoring quantifies setup quality across all thermal dimensions Perfect explosion detection identifies rare, high-probability explosive move conditions Each component contributes unique thermal information: pressure measurement reveals directional momentum, temperature analysis shows volatility energy, steam detection indicates volume explosions, confluence scoring quantifies alignment, and momentum confirmation ensures signal quality. The integration's value lies in identifying moments when all thermal systems align simultaneously for explosive market moves. Disclaimer This indicator is provided for educational and informational purposes only. It is not financial advice or a recommendation to buy or sell any financial instrument. Trading involves substantial risk of loss and is not suitable for all investors. Thermal momentum analysis and explosion detection are analytical concepts that do not guarantee future price movement. Past performance and backtested results do not guarantee future results. Market conditions change, and thermal patterns that worked historically may not work in the future. Always use proper risk management, including stop losses and position sizing appropriate for your account size and risk tolerance. Never risk more than you can afford to lose. Consider consulting with a qualified financial advisor before making investment decisions. The author is not responsible for any losses incurred from using this indicator. Users assume full responsibility for all trading decisions made using this tool. -Made with passion by officialjackofalltrades
Pine Script® Indikator
von officialjackofalltrades
OBV + WaveTrend Volume Scalper [GratefulFutures]This script is a combination script of three different strategies that provides buy and sell signals based on the change of volume with momentum confirmations. Sources used: This script relies on the outstanding scripts of the great script writer LazyBear: LazyBear The following scripts were used in this publication: 1. A modified "On-Balance Volume Oscillator" modified from LazyBear's original script: 2. Wavetrend Oscillator with crosses, Author: LazyBear 3. Squeeze Momentum Oscillator, Author: LazyBear This script functions based on the following criteria being true: 1. On balance volume oscillator turning from negative to positive (buy) or positive to negative (sell) 2. Squeeze Momentum value is increasing (buy) or decreasing (sell) 3. Wavetrend 1 (wt1) is greater than wavetrend 2 (wt2) (buy)/ Wavetrend 1 (wt1) is less than wavetrend 2 (wt2) (sell) By combining these factors the indicator is able to signal exactly when net buying turns to net selling (OBV) and when this change is most advantageous to continue based on the momentum and price action of the underlying asset (SQMOMO and Wavetrend). This allows you to pair volume and price action for a powerful tool to identify where price will reverse or continue providing exceptional entries for short term trades, especially when combined with other aspects such as support and resistance, or volume profile. How to use: Simply adjust the settings to your preference and read the given signals as generated. Settings There are multiple ways to tune the signals generated. It is set standard for my preferred use on a 1 minute chart. OBV Oscillator Settings The first 4 dropdowns in the Inputs section tune the On Balance Volume Oscillator (OBVO) portion of the indicator. You can choose if you want it to calculate based on close, open, high, low, or other value. The most impactful in the entire settings is going to be the length and smoothing of the OBVO EMA. Making this number lower increasing the sensitivity to changes in volume, making the signals come quicker but is more susceptible to quick fluctuations. A value of between (5-20) is reasonable for the OBVO EMA length. There is a separate smoothing factor titled OBV Smoothing Length and below that, OBV Smoothing Type , a value of (2) is standard with "SMA" for smoothing type with a value of between 2-10 being reasonable. You may also play with these values to see what you like for your trading style. Wavetrend Settings The next 3 options are to modify the wavetrend portion of the indicator. I do not modify these from standard, and feel that they work appropriately on all time frames at the following values: n1 length (10), n2 length (20), Wavetrend Signal SMA length (4) Squeeze Momentum Settings The following 5 options through the end modify the Squeeze momentum portion of the indicator. The only one that modifies the signals generated is the KC Length , Making this number lower increasing the sensitivity to changes in price action, making the signals come quicker but is more susceptible to quick fluctuations. A value of between (18-25) is reasonable for KC Length . Style Setting You may select if you want to see the buy and sell signals. The following 5 options Raw OBV Osc through Squeeze Momentum allow you to see where each specific requirement was met, posted as a vertical line, but for live use it is recommended to turn all of these vertical lines off and only use the buy and sell signals. Time Frames: While this script is most effective on shorter time frames (1 minute for scalping and daytrading) it is also viable to use it on longer timeframes, due to the nature of its components being independent of time frame. Examples of use - (Green and red vertical lines are for visualization purpose and are not part of the script) SPY 1 Minute (Factory Settings): SPX 15 minutes (Factory Settings): Considerations This script is meant primarily for short term trading, trades on the basis of seconds to minutes primarily. While they can be a good indication of volume lining up with momentum, it is always wise to use them in combination with other factors such as support, resistance, market structure, volume levels, or the many other techniques out there... As Always... Happy Trading. -Not_A_Mad_Scientist (GreatfulFutures Trade University)
Pine Script® Indikator
von not_a_mad_scientist
Long Elite Squeeze (LES) — H.H 22 Lindsay (AI)LES (Long Elite Squeeze) LES (Long Elite Squeeze) is a trading framework designed to capture the highest-probability long setups. It’s not just another signal script — it’s a structured system built to filter noise, manage risk, and keep you aligned with real momentum. 🔹 Core Logic Breakout Confirmation – Ensures moves have structure, not just random spikes. Relative Volume (RVOL) – Confirms participation and fuel behind the move. RSI Alignment – Avoids overextended traps and fakeouts. Squeeze Momentum – The backbone of LES. Signals fire only after a defined squeeze pattern shift (6+ dark green bars followed by a light green bar). 🔹 Trade Management Built In Automated Sell Signals – Trigger on either: 2 consecutive dark green bars on Squeeze Momentum WaveTrend cross down (only valid after a Buy signal — no random shorts) HUD Entry Checklist – Live conditions shown on chart. Status Tracker HUD – Flips between “Waiting for Entry” and “In Trade” for clear context. 🔹 Flexibility 3 switchable squeeze versions (V1, V2, V3) for different market conditions. Customizable EMA & ATR settings (with color options). Session-aware logic — filter signals to prime trading hours. 🔹 Blueprint & Credits LES is a fusion of proven concepts, standing on the shoulders of respected creators: -Squeeze Momentum – LazyBear -WaveTrend Oscillator – LazyBear -Relative Volume – LonesomeTheBlue Breakout/structural logic – refined from classic frameworks Their work laid the foundation — LES expands and integrates them into a complete trading system. ⚡ Why LES Stands Out LES wasn’t coded overnight. It’s the result of countless hours of live testing, rebuilding, and refining. Every feature earned its place by proving value in real trading, not theory. LES is more than an indicator. It’s a disciplined framework — crafted to turn chaos into structure, randomness into probability, and noise into clarity. ⚠️ Disclaimer: This is a trading framework, not financial advice. Performance depends on trader discipline, risk management, and market conditions.
Pine Script® Indikator
von ElitexFineFir
6
WaveTrend Divergences, Candle Colouring and TP Signal [LuciTech]WaveTrend is a momentum-based oscillator designed to track trend strength, detect divergences, and highlight potential take-profit zones using Bollinger Bands. It provides a clear visualization of market conditions to help traders identify trend shifts and exhaustion points. The WaveTrend Oscillator consists of a smoothed momentum line (WT Line) and a signal line, which work together to indicate trend direction and possible reversals. When the WT Line crosses above the signal line, it suggests bullish momentum, while crossing below signals bearish momentum. Candle colouring changes dynamically based on WaveTrend crossovers. If the WT Line crosses above the signal line, candles turn bullish. If the WT Line crosses below the signal line, candles turn bearish. This provides an immediate visual cue for trend direction. Divergence Detection identifies when price action contradicts the WaveTrend movement. Bullish Divergence appears when price makes a lower low, but the WT Line forms a higher low, suggesting weakening bearish pressure. Bearish Divergence appears when price makes a higher high, but the WT Line forms a lower high, indicating weakening bullish pressure. Plus (+) Divergences are stronger signals that occur when the first pivot of the divergence happens at an extreme level—above +60 for bearish divergence or below -60 for bullish divergence. These levels suggest the market is overbought or oversold, making the divergence more significant. Bollinger Band Signals highlight potential take-profit zones by detecting when the WT Line moves beyond its upper or lower Bollinger Band. If the WT Line crosses above the upper band, it signals stretched bullish momentum, suggesting a possible pullback or reversal. If the WT Line crosses below the lower band, it indicates stretched bearish momentum, warning of a potential bounce. How It Works The WaveTrend momentum calculation is based on an EMA-smoothed moving average to filter out noise and provide a more reliable trend indication. The WT Line (momentum line) fluctuates based on market momentum. The signal line smooths out the WT Line to help identify trend shifts. When the WT Line crosses above the signal line, it suggests buying pressure, and when it crosses below, it indicates selling pressure. Divergences are detected by comparing pivot highs and lows in price with pivot highs and lows in the WT Line. A pivot forms when a local high or low is confirmed after a certain number of bars. The indicator tracks whether price action and the WT Line are making opposite movements. If a divergence occurs and the first pivot was beyond ±60, it is marked as a Plus Divergence, making it a stronger reversal signal. Bollinger Bands are applied directly to the WT Line instead of price, identifying when the WT Line moves outside its volatility range. This helps traders recognize when momentum is overstretched and a potential reversal or retracement is likely. Settings Channel Length (default: 8) controls the period used to calculate the WT Line. Average Length (default: 16) smooths the WT Line for better trend detection. Divergences (on/off) enables or disables divergence plotting. Candle colouring (on/off) applies or removes trend-based candle colour changes. Bollinger Band Signals (on/off) toggles take-profit signals when the WT Line crosses the bands. Bullish/Bearish colours allow customization of divergence and signal colours. Interpretation The WaveTrend Oscillator helps traders assess market momentum and trend strength. Crossovers between the WT Line and signal line indicate potential trend reversals. Divergences warn of weakening momentum and possible reversals, with Plus Divergences acting as stronger signals. Bollinger Band Crosses highlight areas where momentum is overstretched, signaling potential profit-taking opportunities.
Pine Script® Indikator
von TradesLuci
WaveTrend With Divs & RSI(STOCH) Divs by WeloTradesWaveTrend with Divergences & RSI(STOCH) Divergences by WeloTrades Overview The "WaveTrend With Divergences & RSI(STOCH) Divergences" is an advanced Pine Script™ indicator designed for TradingView, offering a multi-dimensional analysis of market conditions. This script integrates several technical indicators—WaveTrend, Money Flow Index (MFI), RSI, and Stochastic RSI—into a cohesive tool that identifies both regular and hidden divergences across these indicators. These divergences can indicate potential market reversals and provide critical trading opportunities. This indicator is not just a simple combination of popular tools; it offers extensive customization options, organized data presentation, and valuable trading signals that are easy to interpret. Whether you're a day trader or a long-term investor, this script enhances your ability to make informed decisions. Originality and Usefulness The originality of this script lies in its integration and the synergy it creates among the indicators used. Rather than merely combining multiple indicators, this script allows them to work together, enhancing each other's strengths. For example, by identifying divergences across WaveTrend, RSI, and Stochastic RSI simultaneously, the script provides multiple layers of confirmation, which reduces the likelihood of false signals and increases the reliability of trading signals. The usefulness of this script is apparent in its ability to offer a consolidated view of market dynamics. It not only simplifies the analytical process by combining different indicators but also provides deeper insights through its divergence detection features. This comprehensive approach is designed to help traders identify potential market reversals, confirm trends, and ultimately make more informed trading decisions. How the Components Work Together 1. Cross-Validation of Signals WaveTrend: This indicator is primarily used to identify overbought and oversold conditions, as well as potential buy and sell signals. WaveTrend's ability to smooth price data and reduce noise makes it a reliable tool for identifying trend reversals. RSI & Stochastic RSI: These momentum oscillators are used to measure the speed and change of price movements. While RSI identifies general overbought and oversold conditions, Stochastic RSI offers a more granular view by tracking the RSI’s level relative to its high-low range over a period of time. When these indicators align with WaveTrend signals, it adds a layer of confirmation that enhances the reliability of the signals. Money Flow Index (MFI): This volume-weighted indicator assesses the inflow and outflow of money in an asset, giving insights into buying and selling pressure. By analyzing the MFI alongside WaveTrend and RSI indicators, the script can cross-validate signals, ensuring that buy or sell signals are supported by actual market volume. Example Bullish scenario: When a bullish divergence is detected on the RSI and confirmed by a corresponding bullish signal on the WaveTrend, along with an increasing Money Flow Index, the probability of a successful trade setup increases. This cross-validation minimizes the risk of acting on false signals, which might occur when relying on a single indicator. Example Bearish scenario: When a bearish divergence is detected on the RSI and confirmed by a corresponding bearish signal on the WaveTrend, along with an decreasing Money Flow Index, the probability of a successful trade setup increases. This cross-validation minimizes the risk of acting on false signals, which might occur when relying on a single indicator. 2. Divergence Detection and Market Reversals Regular Divergences: Occur when the price action and an indicator (like RSI or WaveTrend) move in opposite directions. Regular bullish divergence signals a potential upward reversal when the price makes a lower low while the indicator makes a higher low. Conversely, regular bearish divergence suggests a downward reversal when the price makes a higher high, but the indicator makes a lower high. Hidden Divergences: These occur when the price action and indicator move in the same direction, but with different momentum. Hidden bullish divergence suggests the continuation of an uptrend, while hidden bearish divergence suggests the continuation of a downtrend. By detecting these divergences across multiple indicators, the script identifies potential trend reversals or continuations with greater accuracy. Example: The script might detect a regular bullish divergence on the WaveTrend while simultaneously identifying a hidden bullish divergence on the RSI. This combination suggests that while a trend reversal is possible, the overall market sentiment remains bullish, providing a nuanced view of the market. A Regular Bullish Divergence Example: A Hidden Bullish Divergence Example: A Regular Bearish Divergence Example: A Hidden Bearish Divergence Example: 3. Trend Strength and Sentiment Analysis WaveTrend: Measures the strength and direction of the trend. By identifying the extremes of market sentiment (overbought and oversold levels), WaveTrend provides early signals for potential reversals. Money Flow Index (MFI): Assesses the underlying sentiment by analyzing the flow of money. A rising MFI during an uptrend confirms strong buying pressure, while a falling MFI during a downtrend confirms selling pressure. This helps traders assess whether a trend is likely to continue or reverse. RSI & Stochastic RSI: Offer a momentum-based perspective on the trend’s strength. High RSI or Stochastic RSI values indicate that the asset may be overbought, suggesting a potential reversal. Conversely, low values indicate oversold conditions, signaling a possible upward reversal. Example: During a strong uptrend, the WaveTrend & RSI's might signal overbought conditions, suggesting caution. If the MFI also shows decreasing buying pressure and the RSI reaches extreme levels, these indicators together suggest that the trend might be weakening, and a reversal could be imminent. Example: During a strong downtrend, the WaveTrend & RSI's might signal oversold conditions, suggesting caution. If the MFI also shows increasing buying pressure and the RSI reaches extreme levels, these indicators together suggest that the trend might be weakening, and a reversal could be imminent. Conclusion The "WaveTrend With Divergences & RSI(STOCH) Divergences" script offers a powerful, integrated approach to technical analysis by combining trend, momentum, and sentiment indicators into a single tool. Its unique value lies in the cross-validation of signals, the ability to detect divergences, and the comprehensive view it provides of market conditions. By offering traders multiple layers of analysis and customization options, this script is designed to enhance trading decisions, reduce false signals, and provide clearer insights into market dynamics. WAVETREND Display of WaveTrend: Display of WaveTrend Setting: WaveTrend Indicator Explanation The WaveTrend indicator helps identify overbought and oversold conditions, as well as potential buy and sell signals. Its flexibility allows traders to adapt it to various strategies, making it a versatile tool in technical analysis. WaveTrend Input Settings: WT MA Source: Default: HLC3 What it is: The data source used for calculating the WaveTrend Moving Average. What it does: Determines the input data to smooth price action and filter noise. Example: Using HLC3 (average of High, Low, Close) provides a smoother data representation compared to using just the closing price. Length (WT MA Length): Default: 3 What it is: The period used to calculate the Moving Average. What it does: Adjusts the sensitivity of the WaveTrend indicator, where shorter lengths respond more quickly to price changes. Example: A length of 3 is ideal for short-term analysis, providing quick reactions to price movements. WT Channel Length & Average: Default: WT Channel Length = 9, Average = 12 What it is: Lengths used to calculate the WaveTrend channel and its average. What it does: Smooths out the WaveTrend further, reducing false signals by averaging over a set period. Example: Higher values reduce noise and help in identifying more reliable trends. Channel: Style, Width, and Color: What it is: Customization options for the WaveTrend channel's appearance. What it does: Adjusts how the channel is displayed, including line style, width, and color. Example: Choosing an area style with a distinct color can make the WaveTrend indicator clearly visible on the chart. WT Buy & Sell Signals: What it is: Settings to enable and customize buy and sell signals based on WaveTrend. What it does: Allows for the display of buy/sell signals and customization of their shapes and colors. When it gives a Buy Signal: Generated when the WaveTrend line crosses below an oversold level and then rises back, indicating a potential upward price movement. When it gives a Sell Signal: Triggered when the WaveTrend line crosses above an overbought level and then declines, suggesting a possible downward trend. Example: The script identifies these signals based on mean reversion principles, where prices tend to revert to the mean after reaching extremes. Traders can use these signals to time their entries and exits effectively. WAVETREND OVERBOUGTH AND OVERSOLD LEVELS Display of WaveTrend with Overbought & Oversold Levels: Display of WaveTrend Overbought & Oversold Levels Settings: WaveTrend Overbought & Oversold Levels Explanation WT OB & OS Levels: Default: OB Level 1 = 53, OB Level 2 = 60, OS Level 1 = -53, OS Level 2 = -60 What it is: The default overbought and oversold levels used by the WaveTrend indicator to signal potential market reversals. What it does: When the WaveTrend crosses above the OB levels, it indicates an overbought condition, potentially signaling a reversal or selling opportunity. Conversely, when it crosses below the OS levels, it indicates an oversold condition, potentially signaling a reversal or buying opportunity. Example: A trader might use these levels to time entry or exit points, such as selling when the WaveTrend crosses into the overbought zone or buying when it crosses into the oversold zone. Show OB/OS Levels: Default: True What it is: Toggle options to show or hide the overbought and oversold levels on your chart. What it does: When enabled, these levels will be visually represented on your chart, helping you to easily identify when the market reaches these critical thresholds. Example: Displaying these levels can help you quickly see when the WaveTrend is approaching or has crossed into overbought or oversold territory, allowing for more informed trading decisions. Line Style, Width, and Color for OB/OS Levels: What it is: Options to customize the appearance of the OB and OS levels on your chart, including line style (solid, dotted, dashed), line width, and color. What it does: These settings allow you to adjust how prominently these levels are displayed on your chart, which can help you better visualize and respond to overbought or oversold conditions. Example: Setting a thicker, dashed line in a contrasting color can make these levels stand out more clearly, aiding in quick visual identification. Example of Use: Scenario: A trader wants to identify potential selling points when the market is overbought. They set the OB levels at 53 and 60, choosing a solid, red line style to make these levels clear on their chart. As the WaveTrend crosses above 53, they monitor for further price action, and upon crossing 60, they consider initiating a sell order. WAVETREND DIVERGENCES Display of WaveTrend Divergence: Display of WaveTrend Divergence Setting: WaveTrend Divergence Indicator Explanation The WaveTrend Divergence feature helps identify potential reversal points in the market by highlighting divergences between the price and the WaveTrend indicator. Divergences can signal a shift in market momentum, indicating a possible trend reversal. This component allows traders to visualize and customize divergence detection on their charts. WaveTrend Divergence Input Settings: Potential Reversal Range: Default: 28 What it is: The number of bars to look back when detecting potential tops and bottoms. What it does: Sets the range for identifying possible reversal points based on historical data. Example: A setting of 28 looks back across the last 28 bars to find reversal points, offering a balance between responsiveness and reliability. Reversal Minimum LVL OB & OS: Default: OB = 35, OS = -35 What it is: The minimum overbought and oversold levels required for detecting potential reversals. What it does: Adjusts the thresholds that trigger a reversal signal based on the WaveTrend indicator. Example: A higher OB level reduces the sensitivity to overbought conditions, potentially filtering out false reversal signals. Lookback Bar Left & Right: Default: Left = 10, Right = 1 What it is: The number of bars to the left and right used to confirm a top or bottom. What it does: Helps determine the position of peaks and troughs in the price action. Example: A larger left lookback captures more extended price action before the peak, while a smaller right lookback focuses on the immediate past. Lookback Range Min & Max: Default: Min = 5, Max = 60 What it is: The minimum and maximum range for the lookback period when identifying divergences. What it does: Fine-tunes the detection of divergences by controlling the range over which the indicator looks back. Example: A wider range increases the chances of detecting divergences across different market conditions. R.Div Minimum LVL OB & OS: Default: OB = 53, OS = -53 What it is: The threshold levels for detecting regular divergences. What it does: Adjusts the sensitivity of the regular divergence detection. Example: Higher thresholds make the detection more conservative, identifying only stronger divergence signals. H.Div Minimum LVL OB & OS: Default: OB = 20, OS = -20 What it is: The threshold levels for detecting hidden divergences. What it does: Similar to regular divergence settings but for hidden divergences, which can indicate potential reversals that are less obvious. Example: Lower thresholds make the hidden divergence detection more sensitive, capturing subtler market shifts. Divergence Label Options: What it is: Options to display and customize labels for regular and hidden divergences. What it does: Allows users to visually differentiate between regular and hidden divergences using customizable labels and colors. Example: Using different colors and symbols for regular (R) and hidden (H) divergences makes it easier to interpret signals on the chart. Text Size and Color: What it is: Customization options for the size and color of divergence labels. What it does: Adjusts the readability and visibility of divergence labels on the chart. Example: Larger text size may be preferred for charts with a lot of data, ensuring divergence labels stand out clearly. FAST & SLOW MONEY FLOW INDEX Display of Fast & Slow Money Flow: Display of Fast & Slow Money Flow Setting: Fast Money Flow Indicator Explanation The Fast Money Flow indicator helps traders identify the flow of money into and out of an asset over a shorter time frame. By tracking the volume-weighted average of price movements, it provides insights into buying and selling pressure in the market, which can be crucial for making timely trading decisions. Fast Money Flow Input Settings: Fast Money Flow: Length: Default: 9 What it is: The period used for calculating the Fast Money Flow. What it does: Determines the sensitivity of the Money Flow calculation. A shorter length makes the indicator more responsive to recent price changes, while a longer length provides a smoother signal. Example: A length of 9 is suitable for traders looking to capture quick shifts in market sentiment over a short period. Fast MFI Area Multiplier: Default: 5 What it is: A multiplier applied to the Money Flow area calculation. What it does: Adjusts the size of the Money Flow area on the chart, effectively amplifying or reducing the visual impact of the indicator. Example: A higher multiplier can make the Money Flow more prominent on the chart, aiding in the quick identification of significant money flow changes. Y Position (Y Pos): Default: 0 What it is: The vertical position adjustment for the Fast Money Flow plot on the chart. What it does: Allows you to move the Money Flow plot up or down on the chart to avoid overlap with other indicators. Example: Adjusting the Y Position can be useful if you have multiple indicators on the chart and need to maintain clarity. Fast MFI Style, Width, and Color: What it is: Customization options for how the Fast Money Flow is displayed on the chart. What it does: Enables you to choose between different plot styles (line or area), set the line width, and select colors for positive and negative money flow. Example: Using different colors for positive (green) and negative (red) money flow helps to visually distinguish between periods of buying and selling pressure. Slow Money Flow Indicator Explanation The Slow Money Flow indicator tracks the flow of money into and out of an asset over a longer time frame. It provides a broader perspective on market sentiment, smoothing out short-term fluctuations and highlighting longer-term trends. Slow Money Flow Input Settings: Slow Money Flow: Length: Default: 12 What it is: The period used for calculating the Slow Money Flow. What it does: A longer period smooths out short-term fluctuations, providing a clearer view of the overall money flow trend. Example: A length of 12 is often used by traders looking to identify sustained trends rather than short-term volatility. Slow MFI Area Multiplier: Default: 5 What it is: A multiplier applied to the Slow Money Flow area calculation. What it does: Adjusts the size of the Money Flow area on the chart, helping to emphasize the indicator’s significance. Example: Increasing the multiplier can help highlight the Money Flow in markets with less volatile price action. Y Position (Y Pos): Default: 0 What it is: The vertical position adjustment for the Slow Money Flow plot on the chart. What it does: Allows for vertical repositioning of the Money Flow plot to maintain chart clarity when used with other indicators. Example: Adjusting the Y Position ensures that the Slow Money Flow indicator does not overlap with other key indicators on the chart. Slow MFI Style, Width, and Color: What it is: Customization options for the visual display of the Slow Money Flow on the chart. What it does: Allows you to choose the plot style (line or area), set the line width, and select colors to differentiate positive and negative money flow. Example: Customizing the colors for the Slow Money Flow allows traders to quickly distinguish between buying and selling trends in the market. RSI Display of RSI: Display of RSI Setting: RSI Indicator Explanation The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements. It is typically used to identify overbought or oversold conditions in the market, providing traders with potential signals for buying or selling. RSI Input Settings: RSI Source: Default: Close What it is: The data source used for calculating the RSI. What it does: Determines which price data (e.g., close, open) is used in the RSI calculation, affecting how the indicator reflects market conditions. Example: Using the closing price is standard practice, as it reflects the final agreed-upon price for a given time period. MA Type (Moving Average Type): Default: SMA What it is: The type of moving average applied to the RSI for smoothing purposes. What it does: Changes the smoothing technique of the RSI, impacting how quickly the indicator responds to price movements. Example: Using an Exponential Moving Average (EMA) will make the RSI more sensitive to recent price changes compared to a Simple Moving Average (SMA). RSI Length: Default: 14 What it is: The period over which the RSI is calculated. What it does: Adjusts the sensitivity of the RSI. A shorter length (e.g., 7) makes the RSI more responsive to recent price changes, while a longer length (e.g., 21) smooths out the indicator, reducing the number of signals. Example: A 14-period RSI is commonly used for identifying overbought and oversold conditions, providing a balance between sensitivity and reliability. RSI Plot Style, Width, and Color: What it is: Options to customize the appearance of the RSI line on the chart. What it does: Allows you to adjust the visual representation of the RSI, including the line width and color. Example: Setting a thicker line width and a bright color like yellow can make the RSI more visible on the chart, aiding in quick analysis. Display of RSI with RSI Moving Average: RSI Moving Average Explanation The RSI Moving Average adds a smoothing layer to the RSI, helping to filter out noise and provide clearer signals. It is particularly useful for confirming trend strength and identifying potential reversals. RSI Moving Average Input Settings: MA Length: Default: 14 What it is: The period over which the Moving Average is calculated on the RSI. What it does: Adjusts the smoothing of the RSI, helping to reduce false signals and provide a clearer trend indication. Example: A 14-period moving average on the RSI can smooth out short-term fluctuations, making it easier to spot genuine overbought or oversold conditions. MA Plot Style, Width, and Color: What it is: Customization options for how the RSI Moving Average is displayed on the chart. What it does: Allows you to adjust the line width and color, helping to differentiate the Moving Average from the main RSI line. Example: Using a contrasting color for the RSI Moving Average (e.g., magenta) can help it stand out against the main RSI line, making it easier to interpret the indicator. STOCHASTIC RSI Display of Stochastic RSI: Display of Stochastic RSI Setting: Stochastic RSI Indicator Explanation The Stochastic RSI (Stoch RSI) is a momentum oscillator that measures the level of the RSI relative to its high-low range over a set period of time. It is used to identify overbought and oversold conditions, providing potential buy and sell signals based on momentum shifts. Stochastic RSI Input Settings: Stochastic RSI Length: Default: 14 What it is: The period over which the Stochastic RSI is calculated. What it does: Adjusts the sensitivity of the Stochastic RSI. A shorter length makes the indicator more responsive to recent price changes, while a longer length smooths out the fluctuations, reducing noise. Example: A length of 14 is commonly used to identify momentum shifts over a medium-term period, providing a balanced view of potential overbought or oversold conditions. Display of Stochastic RSI %K Line: Stochastic RSI %K Line Explanation The %K line in the Stochastic RSI is the main line that tracks the momentum of the RSI over the chosen period. It is the faster-moving component of the Stochastic RSI, often used to identify entry and exit points. Stochastic RSI %K Input Settings: %K Length: Default: 3 What it is: The period used for smoothing the %K line of the Stochastic RSI. What it does: Smoothing the %K line helps reduce noise and provides a clearer signal for potential market reversals. Example: A smoothing length of 3 is common, offering a balance between responsiveness and noise reduction, making it easier to spot significant momentum shifts. %K Plot Style, Width, and Color: What it is: Customization options for the visual representation of the %K line. What it does: Allows you to adjust the appearance of the %K line on the chart, including line width and color, to fit your visual preferences. Example: Setting a blue color and a medium width for the %K line makes it stand out clearly on the chart, helping to identify key points of momentum change. %K Fill Color (Above): What it is: The fill color that appears above the %K line on the chart. What it does: Adds visual clarity by shading the area above the %K line, making it easier to interpret the direction and strength of momentum. Example: Using a light blue fill color above the %K line can help emphasize bullish momentum, making it visually prominent. Display of Stochastic RSI %D Line: Stochastic RSI %D Line Explanation The %D line in the Stochastic RSI is a moving average of the %K line and acts as a signal line. It is slower-moving compared to the %K line and is often used to confirm signals or identify potential reversals when it crosses the %K line. Stochastic RSI %D Input Settings: %D Length: Default: 3 What it is: The period used for smoothing the %D line of the Stochastic RSI. What it does: Smooths out the %D line, making it less sensitive to short-term fluctuations and more reliable for identifying significant market signals. Example: A length of 3 is often used to provide a smoothed signal line that can help confirm trends or reversals indicated by the %K line. %D Plot Style, Width, and Color: What it is: Customization options for the visual representation of the %D line. What it does: Allows you to adjust the appearance of the %D line on the chart, including line width and color, to match your preferences. Example: Setting an orange color and a thicker line width for the %D line can help differentiate it from the %K line, making crossover points easier to spot. %D Fill Color (Below): What it is: The fill color that appears below the %D line on the chart. What it does: Adds visual clarity by shading the area below the %D line, making it easier to interpret bearish momentum. Example: Using a light orange fill color below the %D line can highlight bearish conditions, making it visually easier to identify. RSI & STOCHASTIC RSI OVERBOUGHT AND OVERSOLD LEVELS Display of RSI & Stochastic with Overbought & Oversold Levels: Display of RSI & Stochastic Overbought & Oversold Settings: RSI & Stochastic Overbought & Oversold Levels Explanation The Overbought (OB) and Oversold (OS) levels for RSI and Stochastic RSI indicators are key thresholds that help traders identify potential reversal points in the market. These levels are used to determine when an asset is likely overbought or oversold, which can signal a potential trend reversal. RSI & Stochastic Overbought & Oversold Input Settings: RSI & Stochastic Level 1 Overbought (OB) & Oversold (OS): Default: OB Level = 170, OS Level = 130 What it is: The first set of thresholds for determining overbought and oversold conditions for both RSI and Stochastic RSI indicators. What it does: When the RSI or Stochastic RSI crosses above the overbought level, it suggests that the asset might be overbought, potentially signaling a sell opportunity. Conversely, when these indicators drop below the oversold level, it suggests the asset might be oversold, potentially signaling a buy opportunity. Example: If the RSI crosses above 170, traders might look for signs of a potential trend reversal to the downside, while a cross below 130 might indicate a reversal to the upside. RSI & Stochastic Level 2 Overbought (OB) & Oversold (OS): Default: OB Level = 180, OS Level = 120 What it is: The second set of thresholds for determining overbought and oversold conditions for both RSI and Stochastic RSI indicators. What it does: These levels provide an additional set of reference points, allowing traders to differentiate between varying degrees of overbought and oversold conditions, potentially leading to more refined trading decisions. Example: When the RSI crosses above 180, it might indicate an extreme overbought condition, which could be a stronger signal for a sell, while a cross below 120 might indicate an extreme oversold condition, which could be a stronger signal for a buy. RSI & Stochastic Overbought (OB) Band Customization: OB Level 1: Width, Style, and Color: What it is: Customization options for the visual appearance of the first overbought band on the chart. What it does: Allows you to set the line width, style (solid, dotted, dashed), and color for the first overbought band, enhancing its visibility on the chart. Example: A dashed red line with medium width can clearly indicate the first overbought level, helping traders quickly identify when this threshold is crossed. OB Level 2: Width, Style, and Color: What it is: Customization options for the visual appearance of the second overbought band on the chart. What it does: Allows you to set the line width, style, and color for the second overbought band, providing a clear distinction from the first band. Example: A dashed red line with a slightly thicker width can represent a more significant overbought level, making it easier to differentiate from the first level. RSI & Stochastic Oversold (OS) Band Customization: OS Level 1: Width, Style, and Color: What it is: Customization options for the visual appearance of the first oversold band on the chart. What it does: Allows you to set the line width, style (solid, dotted, dashed), and color for the first oversold band, making it visually prominent. Example: A dashed green line with medium width can highlight the first oversold level, helping traders identify potential buying opportunities. OS Level 2: Width, Style, and Color: What it is: Customization options for the visual appearance of the second oversold band on the chart. What it does: Allows you to set the line width, style, and color for the second oversold band, providing an additional visual cue for extreme oversold conditions. Example: A dashed green line with a thicker width can represent a more significant oversold level, offering a stronger visual cue for potential buying opportunities. RSI DIVERGENCES Display of RSI Divergence Labels: Display of RSI Divergence Settings: RSI Divergence Lookback Explanation The RSI Divergence settings allow traders to customize the parameters for detecting divergences between the RSI (Relative Strength Index) and price action. Divergences occur when the price moves in the opposite direction to the RSI, potentially signaling a trend reversal. These settings help refine the accuracy of divergence detection by adjusting the lookback period and range. ( NOTE: This setting only imply to the RSI. This doesn't effect the STOCHASTIC RSI. ) RSI Divergence Lookback Input Settings: Lookback Left: Default: 10 What it is: The number of bars to look back from the current bar to detect a potential divergence. What it does: Defines the left-side lookback period for identifying pivot points in the RSI, which are used to spot divergences. A longer lookback period may capture more significant trends but could also miss shorter-term divergences. Example: A setting of 10 bars means the script will consider pivot points up to 10 bars before the current bar to check for divergence patterns. Lookback Right: Default: 1 What it is: The number of bars to look forward from the current bar to complete the divergence pattern. What it does: Defines the right-side lookback period for confirming a potential divergence. This setting helps ensure that the identified divergence is valid by allowing the script to check subsequent bars for confirmation. Example: A setting of 1 bar means the script will look at the next bar to confirm the divergence pattern, ensuring that the signal is reliable. Lookback Range Min: Default: 5 What it is: The minimum range of bars required to detect a valid divergence. What it does: Sets a lower bound on the range of bars considered for divergence detection. A lower minimum range might capture more frequent but possibly less significant divergences. Example: Setting the minimum range to 5 ensures that only divergences spanning at least 5 bars are considered, filtering out very short-term patterns. Lookback Range Max: Default: 60 What it is: The maximum range of bars within which a divergence can be detected. What it does: Sets an upper bound on the range of bars considered for divergence detection. A larger maximum range might capture more significant divergences but could also include less relevant long-term patterns. Example: Setting the maximum range to 60 bars allows the script to detect divergences over a longer timeframe, capturing more extended divergence patterns that could indicate major trend reversals. RSI Divergence Explanation RSI divergences occur when the RSI indicator and price action move in opposite directions, signaling potential trend reversals. This section of the settings allows traders to customize the appearance and detection of both regular and hidden bullish and bearish divergences. RSI Divergence Input Settings: R. Bullish Div Label: Default: True What it is: An option to display labels for regular bullish divergences. What it does: Enables or disables the visibility of labels that mark regular bullish divergences, where the price makes a lower low while the RSI makes a higher low, indicating a potential upward reversal. Example: A trader might use this to spot buying opportunities in a downtrend when a bullish divergence suggests the trend may be reversing. Bullish Label Color, Line Width, and Line Color: What it is: Settings to customize the appearance of regular bullish divergence labels. What it does: Allows you to choose the color of the labels, adjust the width of the divergence lines, and select the color for these lines. Example: Selecting a green label color and a distinct line width makes bullish divergences easily recognizable on your chart. R. Bearish Div Label: Default: True What it is: An option to display labels for regular bearish divergences. What it does: Enables or disables the visibility of labels that mark regular bearish divergences, where the price makes a higher high while the RSI makes a lower high, indicating a potential downward reversal. Example: A trader might use this to spot selling opportunities in an uptrend when a bearish divergence suggests the trend may be reversing. Bearish Label Color, Line Width, and Line Color: What it is: Settings to customize the appearance of regular bearish divergence labels. What it does: Allows you to choose the color of the labels, adjust the width of the divergence lines, and select the color for these lines. Example: Choosing a red label color and a specific line width makes bearish divergences clearly stand out on your chart. H. Bullish Div Label: Default: False What it is: An option to display labels for hidden bullish divergences. What it does: Enables or disables the visibility of labels that mark hidden bullish divergences, where the price makes a higher low while the RSI makes a lower low, indicating potential continuation of an uptrend. Example: A trader might use this to confirm an existing uptrend when a hidden bullish divergence signals continued buying strength. Hidden Bullish Label Color, Line Width, and Line Color: What it is: Settings to customize the appearance of hidden bullish divergence labels. What it does: Allows you to choose the color of the labels, adjust the width of the divergence lines, and select the color for these lines. Example: A softer green color with a thinner line width might be chosen to subtly indicate hidden bullish divergences, keeping the chart clean while providing useful information. H. Bearish Div Label: Default: False What it is: An option to display labels for hidden bearish divergences. What it does: Enables or disables the visibility of labels that mark hidden bearish divergences, where the price makes a lower high while the RSI makes a higher high, indicating potential continuation of a downtrend. Example: A trader might use this to confirm an existing downtrend when a hidden bearish divergence signals continued selling pressure. Hidden Bearish Label Color, Line Width, and Line Color: What it is: Settings to customize the appearance of hidden bearish divergence labels. What it does: Allows you to choose the color of the labels, adjust the width of the divergence lines, and select the color for these lines. Example: A muted red color with a thinner line width might be selected to indicate hidden bearish divergences without overwhelming the chart. Divergence Text Size and Color: Default: S (Small) What it is: Settings to adjust the size and color of text labels for RSI divergences. What it does: Allows you to customize the size and color of text labels that display the divergence information on the chart. Example: Choosing a small text size with a bright white color can make divergence labels easily readable without taking up too much space on the chart. STOCHASTIC DIVERGENCES Display of Stochastic RSI Divergence Labels: Display of Stochastic RSI Divergence Settings: Stochastic RSI Divergence Explanation Stochastic RSI divergences occur when the Stochastic RSI indicator and price action move in opposite directions, signaling potential trend reversals. These settings allow traders to customize the detection and visual representation of both regular and hidden bullish and bearish divergences in the Stochastic RSI. Stochastic RSI Divergence Input Settings: R. Bullish Div Label: Default: True What it is: An option to display labels for regular bullish divergences in the Stochastic RSI. What it does: Enables or disables the visibility of labels that mark regular bullish divergences, where the price makes a lower low while the Stochastic RSI makes a higher low, indicating a potential upward reversal. Example: A trader might use this to spot buying opportunities in a downtrend when a bullish divergence in the Stochastic RSI suggests the trend may be reversing. Bullish Label Color, Line Width, and Line Color: What it is: Settings to customize the appearance of regular bullish divergence labels in the Stochastic RSI. What it does: Allows you to choose the color of the labels, adjust the width of the divergence lines, and select the color for these lines. Example: Selecting a blue label color and a distinct line width makes bullish divergences in the Stochastic RSI easily recognizable on your chart. R. Bearish Div Label: Default: True What it is: An option to display labels for regular bearish divergences in the Stochastic RSI. What it does: Enables or disables the visibility of labels that mark regular bearish divergences, where the price makes a higher high while the Stochastic RSI makes a lower high, indicating a potential downward reversal. Example: A trader might use this to spot selling opportunities in an uptrend when a bearish divergence in the Stochastic RSI suggests the trend may be reversing. Bearish Label Color, Line Width, and Line Color: What it is: Settings to customize the appearance of regular bearish divergence labels in the Stochastic RSI. What it does: Allows you to choose the color of the labels, adjust the width of the divergence lines, and select the color for these lines. Example: Choosing an orange label color and a specific line width makes bearish divergences in the Stochastic RSI clearly stand out on your chart. H. Bullish Div Label: Default: False What it is: An option to display labels for hidden bullish divergences in the Stochastic RSI. What it does: Enables or disables the visibility of labels that mark hidden bullish divergences, where the price makes a higher low while the Stochastic RSI makes a lower low, indicating potential continuation of an uptrend. Example: A trader might use this to confirm an existing uptrend when a hidden bullish divergence in the Stochastic RSI signals continued buying strength. Hidden Bullish Label Color, Line Width, and Line Color: What it is: Settings to customize the appearance of hidden bullish divergence labels in the Stochastic RSI. What it does: Allows you to choose the color of the labels, adjust the width of the divergence lines, and select the color for these lines. Example: A softer blue color with a thinner line width might be chosen to subtly indicate hidden bullish divergences, keeping the chart clean while providing useful information. H. Bearish Div Label: Default: False What it is: An option to display labels for hidden bearish divergences in the Stochastic RSI. What it does: Enables or disables the visibility of labels that mark hidden bearish divergences, where the price makes a lower high while the Stochastic RSI makes a higher high, indicating potential continuation of a downtrend. Example: A trader might use this to confirm an existing downtrend when a hidden bearish divergence in the Stochastic RSI signals continued selling pressure. Hidden Bearish Label Color, Line Width, and Line Color: What it is: Settings to customize the appearance of hidden bearish divergence labels in the Stochastic RSI. What it does: Allows you to choose the color of the labels, adjust the width of the divergence lines, and select the color for these lines. Example: A muted orange color with a thinner line width might be selected to indicate hidden bearish divergences without overwhelming the chart. Divergence Text Size and Color: Default: S (Small) What it is: Settings to adjust the size and color of text labels for Stochastic RSI divergences. What it does: Allows you to customize the size and color of text labels that display the divergence information on the chart. Example: Choosing a small text size with a bright white color can make divergence labels easily readable without taking up too much space on the chart. Alert System: Custom Alerts for Divergences and Reversals: What it is: The script includes customizable alert conditions to notify you of detected divergences or potential reversals based on WaveTrend, RSI, and Stochastic RSI. What it does: Helps you stay informed of key market movements without constantly monitoring the charts, enabling timely decisions. Example: Setting an alert for regular bearish divergence on the WaveTrend could notify you of a potential sell opportunity as soon as it is detected. How to Use Alerts: Set up custom alerts in TradingView based on these conditions to be notified of potential trading opportunities. Alerts are triggered when the indicator detects conditions that match the selected criteria, such as divergences or potential reversals. By following the detailed guidelines and examples above, you can effectively use and customize this powerful indicator to suit your trading strategy. For further understanding and customization, refer to the input settings within the script and adjust them to match your trading style and preferences. How Components Work Together Synergy and Cross-Validation: The indicator combines multiple layers of analysis to validate trading signals. For example, a WaveTrend buy signal that coincides with a bullish divergence in RSI and positive fast money flow is likely to be more reliable than any single indicator’s signal. This cross-validation reduces the likelihood of false signals and enhances decision-making. Comprehensive Market Analysis: Each component plays a role in analyzing different aspects of the market. WaveTrend focuses on trend strength, Money Flow indicators assess market sentiment, while RSI and Stochastic RSI offer detailed views of price momentum and potential reversals. Ideal For Traders who require a reliable, multifaceted tool for detecting market trends and reversals. Investors seeking a deeper understanding of market dynamics across different timeframes and conditions, whether in forex, equities, or cryptocurrency markets. This script is designed to provide a comprehensive tool for technical analysis, combining multiple indicators and divergence detection into one versatile and customizable script. It is especially useful for traders who want to monitor various indicators simultaneously and look for convergence or divergence signals across different technical tools. Acknowledgements Special thanks to these amazing creators for inspiration and their creations: I want to thank these amazing creators for creating there amazing indicators , that inspired me and also gave me a head start by making this indicator! Without their amazing indicators it wouldn't be possible! vumanchu: VuManChu Cipher B Divergences. MisterMoTa: RSI + Divergences + Alerts . DevLucem: Plain Stochastic Divergence. Note This indicator is designed to be a powerful tool in your trading arsenal. However , it is essential to backtest and adjust the settings according to your trading strategy before applying it to live trading . If you have any questions or need further assistance, feel free to reach out.
Pine Script® Indikator
von WeloTrades
4
MTF WaveTrend [CryptoSea]The MTF WaveTrend Indicator is a sophisticated tool designed to enhance market analysis through multi-timeframe WaveTrend calculations. This tool is built for traders who seek to identify market momentum and potential reversals with higher accuracy. In the example below, we can see all the choosen timeframes agree on bearish momentum. Key Features Multi-Timeframe WaveTrend Analysis: Tracks WaveTrend values across multiple timeframes to provide a comprehensive view of market momentum. Customizable Colour Rules: Offers three different colour rules (Traditional, WT1 0 Rule, WT1 & WT2 0 Rule) to suit various trading strategies. Timeframe Visibility Control: Allows users to enable or disable specific timeframes, providing flexibility in analysis. Clear Visual Indicators: Uses color-coded squares and labels to clearly display WaveTrend status across different timeframes. Candle Colouring Option: Includes a setting for neutral candle coloring to enhance chart readability. This example shows what can happen when all timeframes start alligning with eachother. How it Works WaveTrend Calculation: Computes the WaveTrend oscillator by applying a series of exponential moving averages and scaling calculations. Multi-Timeframe Data Aggregation: Utilizes the `request.security` function to gather and display WaveTrend values from various timeframes without repainting issues. Conditional Plotting: Displays visual cues only when higher timeframes align with the selected timeframe, ensuring relevant and reliable signals. Dynamic Colour Rules: Adjusts the indicator colors based on the chosen rule, whether it's a traditional crossover, WT1 crossing zero, or both WT1 & WT2 crossing zero. Traditional: Colors are determined by the relationship between WT1 and WT2. If WT1 is greater than WT2, it is bullish (bullColour), otherwise bearish (bearColour). WT1 0 Rule: Colors are based on whether WT1 is above or below zero. WT1 above zero is bullish (bullColour), below zero is bearish (bearColour). WT1 & WT2 0 Rule: A more complex rule where both WT1 and WT2 need to be above zero for a bullish signal (bullColour) or both below zero for a bearish signal (bearColour). If WT1 and WT2 are not in agreement, a neutral color (neutralColour) is displayed. This indicator will make sure that the lowest timeframe you can see data from will be the timeframe you are on. This is to avoid false signals as you cannot display 3 x 5 minute candles whilst looking at the 15 minute candle. Application Strategic Decision-Making: Assists traders in making informed decisions by providing detailed analysis of WaveTrend movements across different timeframes. Trend Confirmation: Reinforces trading strategies by confirming potential reversals with multi-timeframe WaveTrend analysis. Customized Analysis: Adapts to various trading styles with extensive input settings that control the display and sensitivity of WaveTrend data. The MTF WaveTrend Indicator by is an invaluable addition to a trader's toolkit, offering depth and precision in market trend analysis to navigate complex market conditions effectively.
Pine Script® Indikator
von CryptoSeaTV
Market Cipher B by WeloTradesMarket Cipher B by WeloTrades: Detailed Script Description //Overview// "Market Cipher B by WeloTrades" is an advanced trading tool that combines multiple technical indicators to provide a comprehensive market analysis framework. By integrating WaveTrend, RSI, and MoneyFlow indicators, this script helps traders to better identify market trends, potential reversals, and trading opportunities. The script is designed to offer a holistic view of the market by combining the strengths of these individual indicators. //Key Features and Originality// WaveTrend Analysis: WaveTrend Channel (WT1 and WT2): The core of this script is the WaveTrend indicator, which uses the smoothed average of typical price to identify overbought and oversold conditions. WT1 and WT2 are calculated to track market momentum and cyclical price movements. Major Divergences (🐮/🐻): The script detects and highlights major bullish and bearish divergences automatically, providing traders with visual cues for potential reversals. This helps in making informed decisions based on divergence patterns. Relative Strength Index (RSI): RSI Levels: RSI is used to measure the speed and change of price movements, with specific levels indicating overbought and oversold conditions. Customizable Levels: Users can configure the overbought and oversold thresholds, allowing for a tailored analysis based on individual trading strategies. MoneyFlow Indicator: Fast and Slow MoneyFlow: This indicator tracks the flow of capital into and out of the market, offering insights into the underlying market strength. It includes configurable periods and multipliers for both fast and slow MoneyFlow. Vertical Positioning: The script allows users to adjust the vertical position of MoneyFlow plots to maintain a clear and uncluttered chart. Stochastic RSI: Stochastic RSI Levels: This combines the RSI and Stochastic indicators to provide a momentum oscillator that is sensitive to price changes. It is used to identify overbought and oversold conditions within a specified period. Customizable Levels: Traders can set specific levels for more precise analysis. //How It Works// The script integrates these indicators through advanced algorithms, creating a synergistic effect that enhances market analysis. Here’s a detailed explanation of the underlying concepts and calculations: WaveTrend Indicator: Calculation: WaveTrend is based on the typical price (average of high, low, and close) smoothed over a specified channel length. WT1 and WT2 are derived from this typical price and further smoothed using the Average Channel Length. The difference between WT1 and WT2 indicates momentum, helping to identify cyclical market trends. RSI (Relative Strength Index): Calculation: RSI calculates the average gains and losses over a specified period to measure the speed and change of price movements. It oscillates between 0 and 100, with levels set to identify overbought (>70) and oversold (<30) conditions. MoneyFlow Indicator: Calculation: MoneyFlow is derived by multiplying price changes by volume and smoothing the results over specified periods. Fast MoneyFlow reacts quickly to price changes, while Slow MoneyFlow offers a broader view of capital movement trends. Stochastic RSI: Calculation: Stochastic RSI is computed by applying the Stochastic formula to RSI values, which highlights the RSI’s relative position within its range over a given period. This helps in identifying momentum shifts more precisely. //How to Use the Script// Display Settings: Users can enable or disable various components like WaveTrend OB & OS levels, MoneyFlow plots, and divergence alerts through checkboxes. Example: Turn on "Show Major Divergence" to see major bullish and bearish divergence signals directly on the chart. Adjust Channel Settings: Customize the data source, channel length, and smoothing periods in the "WaveTrend Channel SETTINGS" group. Example: Set the "Channel Length" to 10 for a more responsive WaveTrend line or adjust the "Average Channel Length" to 21 for smoother trends. Set Overbought & Oversold Levels: Configure levels for WaveTrend, RSI, and Stochastic RSI in their respective settings groups. Example: Set the WaveTrend Overbought Level to 60 and Oversold Level to -60 to define critical thresholds. Money Flow Settings: Adjust the periods and multipliers for Fast and Slow MoneyFlow indicators, and set their vertical positions for better visualization. Example: Set the Fast Money Flow Period to 9 and Slow Money Flow Period to 12 to capture both short-term and long-term capital movements. //Justification for Combining Indicators// Enhanced Market Analysis: Combining WaveTrend, RSI, and MoneyFlow provides a more comprehensive view of market conditions. Each indicator brings a unique perspective, making the analysis more robust. WaveTrend identifies cyclical trends, RSI measures momentum, and MoneyFlow tracks capital movement. Together, they provide a multi-dimensional analysis of the market. Improved Decision-Making: By integrating these indicators, the script helps traders make more informed decisions. For example, a bullish divergence detected by WaveTrend might be validated by an RSI moving out of oversold territory and supported by increasing MoneyFlow. Customization and Flexibility: The script offers extensive customization options, allowing traders to tailor it to their specific needs and strategies. This flexibility makes it suitable for different trading styles and timeframes. //Conclusion// The indicator stands out due to its innovative combination of WaveTrend, RSI, and MoneyFlow indicators, offering a well-rounded tool for market analysis. By understanding how each component works and how they complement each other, traders can leverage this script to enhance their market analysis and trading strategies, making more informed and confident decisions. Remember to always backtest the indicator first before implying it to your strategy.
Pine Script® Indikator
von WeloTrades
27
WaveTrend Ribbon [AlgoAlpha]🌟🚀 Introducing the WaveTrend Ribbon by AlgoAlpha - Your Next-Level Trading Companion! 🚀🌟 Dive into the world of advanced trading with the WaveTrend Ribbon by AlgoAlpha, a cutting-edge indicator designed to elevate your trading strategy on TradingView. 📈💡 This powerful tool combines the efficiency of the WaveTrend oscillator with innovative Z-score analysis to offer clear, actionable trading signals. 🌊🎯 Key Features: 🔧 Customizable Parameters: Tailor the indicator to your trading needs with adjustable settings including Channel Length, Average Length, Overbought/Oversold Levels, and more. 📊 WaveTrend Oscillator: Utilizes a smoothed version of the average price to identify potential market reversals. 📉 Z-Score Analysis: Enhances signal reliability by measuring the standard deviation of the current price from the mean. 🎨 Dynamic Color Coding: Visual cues shift between up and down colors to indicate market trends, making it easy to read at a glance. ⚠️ Divergence Detection: Automatic identification of bullish and bearish divergences for early signal warnings. 🔔 Custom Alerts: Stay ahead with real-time alerts for key trading events like bullish/bearish divergences and trend reversals. How to Use WaveTrend Ribbon : Maximize your trading potential with the WaveTrend Ribbon by following these simple steps: 🔍 Add to Chart: Locate "WaveTrend Ribbon " in TradingView's Indicators & Strategies and apply it to your chart. Dive into the settings to customize the parameters like Channel Length, Average Length, and the Overbought/Oversold levels to match your trading strategy. - Channel Length affects the sensitivity of the WaveTrend oscillator to price movements. A shorter Channel Length increases responsiveness, useful in volatile markets but may lead to false signals. It's ideal for traders looking for quick reactions to price changes. - Average Length is used to smooth the oscillator further, influencing how quickly the indicator responds to trend changes. A shorter Average Length allows for a quicker response to the oscillator's movements, suitable for short-term trading strategies. 📊 Analyze the Market: Pay close attention to the color transitions and position of the Z-score in relation to its moving average for insights into market direction. Look out for the overbought and oversold conditions for potential reversal points. 🔔 Set Up Alerts: Utilize the built-in alert system to get notified of key events like trend reversals, bullish and bearish divergences, and more, so you can make timely decisions without having to constantly monitor the charts. Basic Logic Explained: The WaveTrend Ribbon is an advanced trading indicator that leverages the WaveTrend oscillator, enhanced by Z-score normalization and moving averages for precise market trend analysis. It calculates the average price deviation over a set period (Channel Length), smoothing it with an Average Length to identify trends. Z-score analysis further refines signals by comparing oscillator deviations against its historical performance, highlighting overbought or oversold conditions. The indicator generates signals for potential reversals and market entries/exits, visualized through dynamic color coding and customizable alerts for traders to act upon efficiently. This multi-layered approach provides a deeper insight into market dynamics, offering a blend of trend following and momentum strategies. By highlighting overbought and oversold conditions with dynamic color changes and providing reversal signals, this indicator is a must-have tool for traders aiming to capitalize on market trends. 📈🚀 Elevate your trading experience with the WaveTrend Ribbon, your go-to indicator for navigating the markets with confidence and precision. Happy trading! 🌟🚀
Pine Script® Indikator
von AlgoAlpha
5
Enhanced WaveTrend OscillatorThe Enhanced WaveTrend Oscillator is a modified version of the original WaveTrend. The WaveTrend indicator is a popular technical analysis tool used to identify overbought and oversold conditions in the market and generate trading signals. The enhanced version addresses certain limitations of the original indicator and introduces additional features for improved analysis and comparison across assets. WaveTrend: The original WaveTrend indicator calculates two lines based on exponential moving averages and their relationship to the asset's price. The first line measures the distance between the asset's price and its EMA, while the second line smooths the first line over a specific period. The result is divided by 0.015 multiplied by the smoothed difference ('d' for reference). The indicator aims to identify overbought and oversold conditions by analyzing the relationship between the two lines. In the original formula, the rudimentary estimation factor 0.015 times 'd' fails to accomodate for approximately a quarter of the data, preventing the indicator from reaching the traditional stationary levels of +-100. This limitation renders the indicator quantitatively biased, as it relies on the user's subjective adjustment of the levels. The enhanced version replaces this factor with the standard deviation of the asset's price, resulting in improved estimation accuracy and provides a more dynamic and robust outcome, we thereafter multiply the result by 100 to achieve a more traditional oscillation. Enhancements and Features: The enhanced version of the WaveTrend indicator addresses several limitations of the original indicator and introduces additional features- Dynamic Estimation: The original indicator uses an arbitrary estimation factor, while the enhanced version replaces it with the standard deviation of the asset's price. This modification provides a more dynamic and accurate estimation, adapting to the specific price characteristics of each asset. Stationary Support and Resistance Levels: The enhanced version provides stationary key support and resistance levels that range from -150 to 150. These levels are determined based on the analysis of the indicator's data and encompass more than 95% of the indicator's values. These levels offer important reference points for traders to identify potential price reversals or significant price movements. Comparison Across Assets: The enhanced version allows for better comparison and analysis across different assets. By incorporating the standard deviation of the asset's price, the indicator provides a more consistent and comparable interpretation of the market conditions across multiple assets. Upon closer inspection of the modification in the enhanced version, we can observe that the resulting indicator is a smoothed variation of the Z-Score! f_ewave(src, chlen, avglen) => basis = ta.ema(src, chlen) dev = ta.stdev(src, chlen) wave = (src - basis) / dev * 100 ta.ema(wave, avglen) Z-Score Analysis: The Z-Score is a statistical measurement that quantifies how far a particular data point deviates from the mean in terms of standard deviations. In the enhanced version, the calculation involves determining the basis (mean) and deviation (standard deviation) of the asset's price to calculate its Z-Score, thereafter applying a smoothing technique to generate the final WaveTrend value. Utility: The 𝗘𝗻𝗵𝗮𝗻𝗰𝗲𝗱 𝗪𝗧 indicator offers traders and investors valuable insights into overbought and oversold conditions in the market. By analyzing the indicator's values and referencing the stationary support and resistance levels, traders can identify potential trend reversals, evaluate market strength, and make better informed analysis. It is important to note that this indicator should be used in conjunction with other technical analysis tools and indicators to confirm trading signals and validate market dynamics. Credit: The 𝗘𝗻𝗵𝗮𝗻𝗰𝗲𝗱 𝗪𝗧 indicator is a modification of the original WaveTrend Oscillator developed by @LazyBear on TradingView. Example Charts:
Pine Script® Indikator
von EliCobra
20
Wavetrend in Dynamic Zones with Kumo Implied VolatilityI was asked to do one of those, so here we go... As always free and open source as it should be. Do not pay for such indicators! A WaveTrend Indicator or also widely known as "Market Cipher" is an Indicator that is based on Moving Averages, therefore its an "lagging indicator". Lagging indicators are best used in combination with leading indicators. In this script the "leading indicator" component are Daily, Weekly or Monthly Pivots . These Pivots can be used as dynamic Support and Resistance , Stoploss, Take Profit etc. This indicator combination is best used in larger timeframes. For lower timeframes you might need to change settings to your liking. The general Wavetrend settings are the same that are used in Market Cipher, Market Liberator and such popular indicators. What are these circles? -These are the WaveTrend Divergences. Red for Regular-Bearish. Orange for Hidden-Bearish. Green for Regular-Bullish. Aqua for Hidden-Bullish. What are these white, orange and aqua triangles? -These are the WaveTrend Pivots. A Pivot counter was added. Every time a pivot is lower than the previous one, an orange triangle is printed, every time a pivot is higher than the previous one an aqua triangle is printed. That mimics a very common way Wavetrend is being used for trading when using those other paid Wavetrend indicators. What are these Orange and Aqua Zones? -These are Dynamic Zones based on the indicator itself, they offer more information than static zones. Of course static lines are also included and can be adjusted. What are the lines between the waves? -This is a Kumo Cloud Implied Volatility indicator. It is color coded and can be used to indicate if a major market move/bottom/top happened. What are those numbers on the right? -The first number is a Bollinger Band indicator that shows if said Bollinger Band is in a state of Oversold/Overbought, the second number is the actual Bollinger Band Width that indicates if the Bollinger Band squeezes, normally that happens right before the market makes an explosive move. Please keep in mind that this indicator is a tool and not a strategy, do not blindly trade signals, do your own research first! Use this indicator in conjunction with other indicators to get multiple confirmations.
Pine Script® Indikator
von AdonisWerther
21
WaveTrend 3D█  OVERVIEW WaveTrend 3D (WT3D) is a novel implementation of the famous WaveTrend (WT) indicator and has been completely redesigned from the ground up to address some of the inherent shortcomings associated with the traditional WT algorithm. █  BACKGROUND The WaveTrend (WT) indicator has become a widely popular tool for traders in recent years. WT was first ported to PineScript in 2014 by the user @LazyBear, and since then, it has ascended to become one of the Top 5 most popular scripts on TradingView. The WT algorithm appears to have origins in a lesser-known proprietary algorithm called Trading Channel Index (TCI), created by AIQ Systems in 1986 as an integral part of their commercial software suite, TradingExpert Pro. The software’s reference manual states that “TCI identifies changes in price direction” and is “an adaptation of Donald R. Lambert’s Commodity Channel Index (CCI)”, which was introduced to the world six years earlier in 1980. Interestingly, a vestige of this early beginning can still be seen in the source code of LazyBear’s script, where the final EMA calculation is stored in an intermediate variable called “tci” in the code. █  IMPLEMENTATION DETAILS WaveTrend 3D is an alternative implementation of WaveTrend that directly addresses some of the known shortcomings of the indicator, including its unbounded extremes, susceptibility to whipsaw, and lack of insight into other timeframes. In the canonical WT approach, an exponential moving average (EMA) for a given lookback window is used to assess the variability between price and two other EMAs relative to a second lookback window. Since the difference between the average price and its associated EMA is essentially unbounded, an arbitrary scaling factor of 0.015 is typically applied as a crude form of rescaling but still fails to capture 20-30% of values between the range of -100 to 100. Additionally, the trigger signal for the final EMA (i.e., TCI) crossover-based oscillator is a four-bar simple moving average (SMA), which further contributes to the net lag accumulated by the consecutive EMA calculations in the previous steps. The core idea behind WT3D is to replace the EMA-based crossover system with modern Digital Signal Processing techniques. By assuming that price action adheres approximately to a Gaussian distribution, it is possible to sidestep the scaling nightmare associated with unbounded price differentials of the original WaveTrend method by focusing instead on the alteration of the underlying Probability Distribution Function (PDF) of the input series. Furthermore, using a signal processing filter such as a Butterworth Filter, we can eliminate the need for consecutive exponential moving averages along with the associated lag they bring. Ideally, it is convenient to have the resulting probability distribution oscillate between the values of -1 and 1, with the zero line serving as a median. With this objective in mind, it is possible to borrow a common technique from the field of Machine Learning that uses a sigmoid-like activation function to transform our data set of interest. One such function is the hyperbolic tangent function (tanh), which is often used as an activation function in the hidden layers of neural networks due to its unique property of ensuring the values stay between -1 and 1. By taking the first-order derivative of our input series and normalizing it using the quadratic mean, the tanh function performs a high-quality redistribution of the input signal into the desired range of -1 to 1. Finally, using a dual-pole filter such as the Butterworth Filter popularized by John Ehlers, excessive market noise can be filtered out, leaving behind a crisp moving average with minimal lag. Furthermore, WT3D expands upon the original functionality of WT by providing: First-class support for multi-timeframe (MTF) analysis Kernel-based regression for trend reversal confirmation Various options for signal smoothing and transformation A unique mode for visualizing an input series as a symmetrical, three-dimensional waveform useful for pattern identification and cycle-related analysis █  SETTINGS This is a summary of the settings used in the script listed in roughly the order in which they appear. By default, all default colors are from Google's TensorFlow framework and are considered to be colorblind safe. Source: The input series. Usually, it is the close or average price, but it can be any series. Use Mirror: Whether to display a mirror image of the source series; for visualizing the series as a 3D waveform similar to a soundwave. Use EMA: Whether to use an exponential moving average of the input series. EMA Length: The length of the exponential moving average. Use COG: Whether to use the center of gravity of the input series. COG Length: The length of the center of gravity. Speed to Emphasize: The target speed to emphasize. Width: The width of the emphasized line. Display Kernel Moving Average: Whether to display the kernel moving average of the signal. Like PCA, an unsupervised Machine Learning technique whereby neighboring vectors are projected onto the Principal Component. Display Kernel Signal: Whether to display the kernel estimator for the emphasized line. Like the Kernel MA, it can show underlying shifts in bias within a more significant trend by the colors reflected on the ribbon itself. Show Oscillator Lines: Whether to show the oscillator lines. Offset: The offset of the emphasized oscillator plots. Fast Length: The length scale factor for the fast oscillator. Fast Smoothing: The smoothing scale factor for the fast oscillator. Normal Length: The length scale factor for the normal oscillator. Normal Smoothing: The smoothing scale factor for the normal frequency. Slow Length: The length scale factor for the slow oscillator. Slow Smoothing: The smoothing scale factor for the slow frequency. Divergence Threshold: The number of bars for the divergence to be considered significant. Trigger Wave Percent Size: How big the current wave should be relative to the previous wave. Background Area Transparency Factor: Transparency factor for the background area. Foreground Area Transparency Factor: Transparency factor for the foreground area. Background Line Transparency Factor: Transparency factor for the background line. Foreground Line Transparency Factor: Transparency factor for the foreground line. Custom Transparency: Transparency of the custom colors. Total Gradient Steps: The maximum amount of steps supported for a gradient calculation is 256. Fast Bullish Color: The color of the fast bullish line. Normal Bullish Color: The color of the normal bullish line. Slow Bullish Color: The color of the slow bullish line. Fast Bearish Color: The color of the fast bearish line. Normal Bearish Color: The color of the normal bearish line. Slow Bearish Color: The color of the slow bearish line. Bullish Divergence Signals: The color of the bullish divergence signals. Bearish Divergence Signals: The color of the bearish divergence signals. █  ACKNOWLEDGEMENTS @LazyBear - For authoring the original WaveTrend port on TradingView @PineCoders - For the beautiful color gradient framework used in this indicator @veryfid - For the inspiration of using mirrored signals for cycle analysis and using multiple lookback windows as proxies for other timeframes
Pine Script® Indikator
von jdehorty
88
Wavetrend Moving Average (WTMA) [Loxx]Wavetrend Moving Average (WTMA) is a Wavetrend indicator morphed into a moving average. Use this indicator as you would any other moving average. What is the Wavetrend indicator? Wavetrend's original name was TCI created by the The Trading Center. The TCI (Trading Channel Index) displays the ratio between the average daily price and the smoothed averaged value of the average daily price. You can read about TCI here: tradingcenter.org How do you morph Wavetrend into a moving average? 1. Calculate Wavetrend 2. Normalize Wavetrend from a range of -1 to 1 to a range of 0 to 1 3. Find high/low values of X bars back of Wavetrend, 4. Subtract high from low to find the simple range of Wavetrend 5. Calculate upper and lower boundaries 6. Calculate the HL2 of using these new boundaries Included: Bar coloring Signals Alerts Loxx's Expanded Source Types
Pine Script® Indikator
von loxx
2
SSL + Wave Trend StrategyStrategy incorporates the following features: Risk management: Configurable X% loss per stop loss Configurable R:R ratio Trade entry: Based on strategy conditions below Trade exit: Based on strategy conditions below Backtesting: Configurable backtesting range by date Trade drawings: Each entry condition indicator can be turned on and off TP/SL boxes drawn for all trades. Can be turned on and off Trade exit information labels. Can be turned on and off NOTE: Trade drawings will only be applicable when using overlay strategies Alerting: Alerts on LONG and SHORT trade entries Debugging: Includes section with useful debugging techniques Strategy conditions Trade entry: LONG C1: SSL Hybrid baseline is BLUE C2: SSL Channel crosses up (green above red) C3: Wave Trend crosses up (represented by pink candle body) C4: Entry candle height is not greater than configured threshold C5: Entry candle is inside Keltner Channel (wicks or body depending on configuration) C6: Take Profit target does not touch EMA (represents resistance) SHORT C1: SSL Hybrid baseline is RED C2: SSL Channel crosses down (red above green) C3: Wave Trend crosses down (represented by orange candle body) C4: Entry candle height is not greater than configured threshold C5: Entry candle is inside Keltner Channel (wicks or body depending on configuration) C6: Take Profit target does not touch EMA (represents support) Trade exit: Stop Loss: Size configurable with NNFX ATR multiplier Take Profit: Calculated from Stop Loss using R:R ratio Credits Strategy is based on the YouTube video "This Unique Strategy Made 47% Profit in 2.5 Months " by TradeSmart. It combines the following indicators to determine trade entry/exit conditions: Wave Trend: Indicator: WaveTrend Oscillator by @LazyBear SSL Channel: SSL channel by @ErwinBeckers SSL Hybrid: SSL Hybrid by @Mihkel00 Keltner Channels: Keltner Channels Bands by @ceyhun Candle Height: Candle Height in Percentage - Columns by @FreeReveller NNFX ATR: NNFX ATR by @sueun123
Pine Script® Strategie
von kevinmck100
7
All TimeFrame OscillatorsI have always fighted to understand the market direction because it looks different on different timeframes. I wanted an indicator where I can see all the different timeframes at once. This indicator shows already existing oscillators but not only in the current chart's timeframe, but all the most important higer timeframes at once. I have started with the stoch, then added as many oscillators as I could. Experimenting with this I have saw that confluence of 4H 1D and 1W Stoch can be very interesting and can highlight higher timeframe take profit areas and sometimes major tops/bottoms. Also bounces can be interesting when a lower timeframe stoch is bounced or rejected from a higher one. Oscillators: Stoch - Stochastic Oscillator SMI - Stochastic Momentum Index Rsi - Relative Strength Index StochRsi - Stochastic RSI WaveTrend - Vumanchu alias Market Cypher Wave Trend line CCI - Commodity Channel Index CCIStoch - Stochastic CCI Williams Percent Range - Williams %R Norm. MACD - Normalized Moving Average Convergence Divergence Norm. MACD Hist - Normalized MACD Histogramm PVT - Normalized Price Volume Trend MFI - Money Flow Index CMF - Chaikin Money Flow Chande Momentum - Chande Momentum Volume - Normalized Volume CandleValue - Vumanchu alias Market Cypher MoneyFlow BBWP - Bollinger Band Width Percentile Line Type Smooth: lines are smoothed, but the actualy not closed values are not shown Step: Step lines, the actually open timeframes are calculated as they closed at the current values Plot Oscillator or it's Slope: its possible to not plot the oscillator but it's slope Print dots when: Cross Up/Down oversold/overbougt level - best for most oscillators. for example when Stoch crosses above 20 or below 80 Cross os/ob and the one higher TF is about to cross - when it's crosses beolw 80 and the higher timeframe oscillator is still above ans sloping down Cross above/below middle line - for example on RSI being above or below 50 can be interesting Print triangles when: All Slope Match - all visible timeframe lines are pointing up or down at the same time All above/belove middle line - all visible lines are above or belove the middle line All above/belove middle line and slope match - like the previous one and the slope direction is the same All above/below oversold/overbougt - all lines are above or below os/ ob. this is the default. it can be a very important confluence Lower TF in order - 5, 15, 30, 60 minute timeframes are in order. Higher TF in order - 4H 1D 1W in order (like 4H above 1D abd 1D above 1W). can be interesting at RSI 4H-1D in order - 4H 1D in order . Print triangles Print all triangles - print all triangles when the condition is met Print only first triangles - only show when the condition starts to met Print only last triangles - small triangles when the condition met first, large when last. tis is the default. Timeframes to show: You can turn on/off different timeframs to show or not from the list below: 1m 5m 15m 30m 1H 4H D 5D W M This is for experimenting/ understanding the market direction on multiple timeframes at once. Don't take it's signals (and any other indicator's) as exact trade signals. use it as confirmation instead. Any comments, insights, ideas are welcome.
Pine Script® Indikator
von engemcsakugyhoztak
4
OpenCipher AOpenCipher A is an open-source and free to use Overlay. Features: EMA Ribbons (Lengths: 5, 11, 15, 18, 21, 25, 29, 33) Symbols ("Be careful" and "attention required" signals) EMA Ribbons The EMA RIbbons are a set of exponential moving averages. Blue and white ribbons = uptrend, gray ribbons = downtrend. The ribbons can act as support in uptrends and as resistance in downtrends. Lengths and source of the ribbons are customizable. Symbols Green Dots: The green dot is a bullish symbol that appears whenever the EMA 11 crosses over EMA 33. Red Cross: The red cross is a bearish symbol that appears whenever the EMA 5 crosses under EMA 11. Blue Triangle: The blue triangle marks a possible trend reversal that appears whenever the EMA 5 crosses over EMA 25 while EMA 29 is below EMA 33. Red Diamond: The red diamond is a bearish symbol that marks a potential local top whenever a bearish wavecross occurs (fast wave crosses under slow wave). Yellow X: The yellow X is a warning signal that appears whenever a bearish wavecross occurs while the slow wave of the wavetrend is below -40 and the moneyflow is in the red (below zero). Blood Diamond: The blood diamond is a bearish symbol that highlights whenever the red diamond and the red cross appear on the same candle. Usage Treat the symbols as signs that your attention might be required and don't trade based on them.
Pine Script® Indikator
von RealMarketMaker
Trend MasterThis is a trend aggregator for confirmation and trend signals. It basically aggregates many buy/sell signals and confirmation and by combining them provides a strong buy/sell signal or trend confirmation. The actual layout idea and trend confirmation is derived from Trend Meter and this indicator uses few other indicator, such as Chandelier Exit, WaveTrend, QQE Signals, Parabolic SAR and AlphaTrend. This indicator aggregates signal from different methods to find out more powerful and confirmed Trend and combines them into one Signal. It also uses Technical Ratings from TradingView team to filter out false signal, it tremendously opts out false signals and improve profitability. The first seven dots are these All 3 Trend Meters Now Align MACD Crossover - Fast - 8, 21, 5 RSI 13: > or < 50 RSI 5: > or < 50 MA Crossover MA Crossover Chaikin Money Flow Alphatrend Technical Ratings Then trend Chandelier Exit WaveTrend QQE Signals Parabolic Sar All 3 Trend Meters aligns and A signal from trend i Instructions Change buy/sell policy based on market trend Works on all TimeFrame but gives more accuracy on 4H, 1D. Buy when green big dot appears at the bottom. Sell when red big dot appears at the bottom. Red/green dot at the top line appears when three trend meter is aligned and this is a good confirmation. Any red/green dot below horizontal bars are trend signals. Big red/green got at the bottom appears whenever there's a good confirmation from trend meter and a buy/sell signal comes from any trend signals. Also look on the technical ratings bar, green means buy, red means sell and yellow means neutral. Look for Support or Resistance Levels for price to be attracted to. Find confluence with other indicators. The more Trend meters are lit up the better. Alert 01 Buy Signal = Strong Buy Signal 02 Sell Signal = Strong Sell Signal 03 Buy Signal = Strong Buy Signal 04 Sell Signal = Strong Sell Signal Thanks to TradingView Technical Ratings authors, evergot, Lij_MC, KivancOzbilgic for their work. This indicator was heavily inspired from their work.
Pine Script® Indikator
von sadmansamee
15
Cipher & DivergenceFor a long time I've been using complicated script with too much informations in it. In this one I try to have just the bare minimum information to be able to analyse and find a potential reversal zone. It is inspired from different wave trend / cipher script but has been tuned after months of backtest. Extending the usage of the wave trend oscillator, which can be used with overbuy & oversell zone it might be better to wait for a confirmation of the movement. This confirmation can be identified by a pull back of the wave trend & price. We can even confort ourself by waiting for reversal indicators. Reversal may occurs after a divergence, wait for it, a cross of zero line followed by a PB to find your entry. You can setup alert on bear / bull divergence but also when the wave trend cross the zero line to never miss a potential trade. Huge thanks to LazyBear for his wave trend And thanks vumanchu for his huge cipher script which was very useful for divergence finder
Pine Script® Indikator
von frozon
5
Time Segmented Volume, TSV Cipher + TSITHE IDEA: TSV is a leading indicator based on the Volume, so it can be used to dectect price movements even before other indicators. You can read about the Time Segmented Volume and the concept how to use it here: From my observations, it seems like you can use this indicator in the similar way to "oscilators" as well. So the idea is to use the signal and run in trough: 1) WaveTrend - to produce "green" and "red" dots. 2) TSI Both oscillators produce two signals that when crossed might be a buy/sell signal. Hope you like the idea. WARNING: Use the indicator for your own risk, it was released for educational purposes.
Pine Script® Indikator
von okhanLAB
7
Wave Trend OscillatorThis is a very standard version of the Wave Trend Oscillator. The Channel and Average values are displayed as lines, most people display them as areas. The Channel and Average difference is displayed as a histogram, most people display it as a tiny noisy area. I was unable to find a standard version of the Wave Trend Oscillator. The colorful hyped up versions of this indicator made me feel like a clown while using them. I have essentially copied the style of the MACD with this indicator, to keep things professional. With this WTO, you can change the timeframe and source. You can also change the histogram average length and multiplier, making it usable. The typical way that people display the histogram is completely unusable and just for appearance. Now it does a decent job showing when the momentum of the WTO's downward movement is slowing down, just like how the MACD histogram works. This indicator is essentially a normalized MACD, though they are calculated differently. The Wave Trend Oscillator is useful for spotting/monitoring changed in mid-trend momentum. In my experience, divergence in this indicator is a strong signal. If the MACD is too slow for you, then this is a great alternative; without all the extra fluff people usually add to it.
Pine Script® Indikator
von UnknownUnicorn28067390
16
WaveTrend 4h/24mWaveTrend 4h/24m is a trading tool based on two WaveTrend timeframes. For this script the WaveTrend calculations made by LazyBear were used. WaveTrend is a widely used indicator for finding direction of an asset. The strategy is developed by Youtuber Jayson Casper. The main strategy on the 4 hour and 24 minute timeframes, this will be the default timeframes. Timeframes can be adjusted in the indicator interface. With Jaysons' we wait for both timeframes to have last printed a green dot for longs, and both timeframes to have last printed a red dot for shorts. When this occurs a green diamond will be printed for longs, a red diamond for shorts. Make sure to always use the chart from the smallest timeframe you're using, so by defaults use the 24 minute chart. Features of the indicator: - WaveTrend Timeframe 1 (Blue/Lightblue wave). - WaveTrend Timeframe 2 (Blue/Purple line with filled background between the lines). - VWAP (Yellow wave which is turned off by default) - Green/Red Diamonds What to look for? This script is all about the Green and Red Diamonds. A Green diamond will be printed when on both the 4 hour and 24 minute timeframe the last printed dot was a green dot. A Red diamond will be printed when on both the 4 hour and 24 minute timeframe the last printed dot was a red dot. What are the Green and Red Diamonds based on? When both VWAP timeframes are ABOVE 0, a green diamond will be printed. This is equivalent to the last dot on both WaveTrend timeframes being a green dot. When both VWAP timeframes are BELOW 0, a red diamond will be printed. This is equivalent to the last dot on both WaveTrend timeframes being a red dot. Happy Trading!
Pine Script® Indikator
von ScryptoMB
12
TradingGroundhog - Strategy & Wavetrend V2#-- Public Strategy - No Repaint - Fractals - Wavetrend -- Here I come with another script, a nice and simple strategy based on fractals and Wavetrends. #-- Synopsis -- A simple idea, on a small time frame (15 min) we buy when the opening price goes below a Bottom fractals and sell when it goes over a Top fractals, but in order to avoid bad and evil downtrends, we use Wavetrends based on a Daily time frame. From it, Tops and Bottoms are extracted. If the opening price goes above Wavetrend Tops, no trades will be conducted during the day. If the price goes below Wavetrend bottoms, no trades will be executed from 1 to N days, until a new Wavetrend bottom is generated. I developed the strategy using BTC /EUR 15 MIN BINANCE but it can be applied to many other cryptos, I don't know for forex or others. You can use it for long term and automated trading, I implemented the Wavetrend indicator to do so, or for short term if you have spot a long coming uptrend. Test it, look at its profit and long or short period on your crypto of choice. #-- Graph reading -- And now, how to read it ? Wavetrends: Red Backgrounds are associated to No Trade periods. These periods occur when the price goes below a Wavetrend bottom or above a Wavetrend Top. They are here to limit the loss. Blue Gradient lines represent the past Tops. For each bar, only the increasing values of the Wavetrend tops are acquired. Going from light to dark blue based on the age of the Tops. Thus, if on line goes from dark to light, this means the price is approaching a previous Wavetrend top. In the opposite, if it darken, thus the price say 'buy buy' and go dropping. Yellow Gradient lines represent the past Bottoms. They are based on the same principe that the blue lines. Fractals: Yellow Flags occur when the opening price goes below a Bottom fractal , it means Buy. White Flags appear when the opening price goes over a Top fractal , it means Sell. #-- Parameters -- *** Parameters have been intensively optimized using 10 cryptocurrency markets in order to have potent efficiency for each of them. I would recommend to only change the Can Be touch parameter. For the others, I don't recommend any modifications. The idea behind the script is to be able to switch between markets without having to optimize parameters, less work, easy to target active crypto and therefor limit the risks. *** Can be touch : 'Combined Smoothness' : The number of open individuals used by the Wavetrend. (6 or 9, often 9 is better but with less volatile crypto it will be 6) 'Filter fractals' : Activate or Disable the filtering fractal operation. If Enable, buy during less risky periods. (Disable is often better) Can be touch but not necessary : 'VolumeMA' : The Volume corrector used by the fractals 'Extreme window' : The number of price individuals to look for if we want to remove extreme fractals. Not to touch : 'Limit_candle to look on' : Number of candles to use to compute the Wavetrend Tops and Bottoms. 'Length top bottom drawn' : Size of the lines 'Long Sop Loss (%)' : The minimal difference of price between a Fractal bottom and the opening price to buy. #-- Time frame -- Should be used with the following time frames depending on the necessity: 1 MIN 3 MIN (Interesting for short term profit, may need some parameter ajustements) 5 MIN 15 MIN (Preferred for long term profit, the script was developed on it) #-- Last words -- The script can be set up to send Tradingview signals to 3comma just by adding comment = " " in strategy.close_all() and strategy.entry(). Good trades ! Disclaimer (As it should always be one to any script) *** This script is intended for and only to be used for personal purposes only. No such information provided by it constitutes advice or a recommendation for any investment or trading strategy for any specific person. There is no guarantee presented or implied as to the accuracy of specific forecasts, projections, or predictive statements offered by the script. Users of the script agree that its original developer does not take responsibility for any of your investment decisions. Please seek professional advice before trading. *** # Here are the results from the 1rst of July 2021 with 100% of equity on the BTC /EUR 15 Min and with a capital of 1 000 EUR. # As I saw, it goes from +20% to more than +100% depending on the selected crypto. Sometimes it's negative but it's quite rare on crypto using the EUR.
Pine Script® Strategie
von UnknownUnicorn27666852
1