WAVES by Westmont

WAVES builds on familiar tools, such as the Exponential Moving Average (EMA), Simple Moving Average (SMA), and basic fractal analysis, to create a comprehensive view of price behavior. Users can interpret this indicator to gain a clearer picture of market conditions, utilizing both WaveTrend’s trend-following signals and VWAP’s volume-weighted price reference.
How the Components Work Together:
Divergence Functions
WAVES uses the bottom_fractal and bot_fractal functions to detect local highs and lows, helping identify potential reversal points in the market. These functions work alongside the WaveTrend and VWAP analysis to confirm or challenge potential turning points.
WaveTrend Calculation
ESA (Exponential Smoothing Average): Provides a smoothed base for price direction.
DE (Deviation): Measures volatility, indicating how much price is fluctuating.
CI (Commodity Channel Index): Tracks cycles between price and the smoothed ESA, identifying potential price shifts.
These values are smoothed using EMA and SMA for greater stability. Users can rely on these smoothed signals to reduce noise and improve trend clarity.
VWAP Area Calculation
Users can observe the VWAP area, calculated from the difference between two WaveTrend lines (wavetrend1 and wavetrend2), to understand market equilibrium in relation to volume-weighted price action. The VWAP area provides a clearer picture of price movement relative to market volume.
Signal Dots and Visualization
- Bullish Signals: Users can look for blue dots when the VWAP area crosses upwards, indicating that price is above the VWAP and suggesting upward momentum.
- Bearish Signals: Users can look for purple dots when the VWAP area crosses downwards, indicating that price is below the VWAP and suggesting downward momentum.
Smooth VWAP Gradient Fill
Users can visually track momentum using the smooth gradient fill between the VWAP plot and the center line. The fill color changes from blue (positive momentum) to purple (negative momentum), and turquoise (neutral), helping traders quickly assess market sentiment and trend strength.
How to Use WAVES by Westmont:
- Bullish Momentum: Users can look for blue dots when the VWAP area crosses upward. This suggests the market is in an uptrend as price moves above the VWAP, potentially indicating upward price action.
- Bearish Momentum: Users can look for purple dots when the VWAP area crosses downward. This suggests the market is in a downtrend as price moves below the VWAP, indicating potential for downward price action.
- Neutral Market Conditions: Users can observe when the VWAP area remains near the center line (turquoise), indicating market consolidation or indecision.
Code Usage: The indicator uses TradingView’s built-in functions (EMA, SMA, and fractals), which are well-optimized for standard technical analysis. These functions serve as a foundation for the indicator’s calculations. Users can trust that the public domain functions ensure efficient performance, while the added customizations enhance signal quality by integrating WaveTrend and VWAP dynamics.
Skrip jemputan sahaja
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Arahan penulis
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Penafian
Skrip jemputan sahaja
Hanya pengguna yang diberikan kebenaran oleh penulis mempunyai akses kepada skrip ini dan ini selalunya memerlukan pembayaran. Anda boleh menambahkan skrip kepada kegemaran anda tetapi anda hanya boleh menggunakannya selepas meminta kebenaran dan mendapatkannya daripada penulis — ketarhui lebih lanjut di sini. Untuk lebih butiran, ikuti arahan penulis di bawah atau hubungi UnknownUnicorn100119678 secara terus.
TradingView tidak menyarankan pembayaran untuk atau menggunakan skrip kecuali anda benar-benar mempercayai penulisnya dan memahami bagaimana ia berfungsi. Anda juga boleh mendapatkan alternatif sumber terbuka lain yang percuma dalam skrip komuniti kami.
Arahan penulis
Amaran: sila baca panduan kami untuk skrip jemputan sahaja sebelum memohon akses.