WaveTrend Oscilator

WaveTrend Oscilator

Wavetrend Oscillator

Indicator — Version 1.0

The Wavetrend Oscillator is a momentum-based technical analysis tool. It is designed to highlight potential momentum shifts, areas that may be overbought or oversold, and the prevailing bias when confirmed by a higher timeframe filter.

How it works

• WT1 and WT2 Lines: Crossovers between these lines are used to indicate changes in momentum.

  • WT1 crossing above WT2 suggests bullish conditions.

  • WT1 crossing below WT2 suggests bearish conditions.

• WT3 Higher Timeframe Filter (Histogram):

  • Positive values indicate higher timeframe upward bias.

  • Negative values indicate higher timeframe downward bias.

• Overbought and Oversold Zones:

  • Readings above +50 indicate potential overbought conditions.

  • Readings below –50 indicate potential oversold conditions.

Inputs

• Higher_TF: Defines the timeframe for the histogram filter (default: H4).

• Channel_Length / Average_Length: Adjusts the sensitivity of the oscillator.

• Signal_Length: Controls responsiveness of the signal line.

• Overbought / Oversold Levels: User-defined thresholds for highlighting extreme conditions.

Usage Notes

• The indicator can be applied to different instruments and timeframes.

• Crossovers aligned with the higher timeframe filter provide stronger confirmation than standalone signals.

• Default settings can be adjusted according to the instrument and trading style.

• This indicator is intended for technical analysis and does not guarantee trading results.