Wave Analyzer - Bobal [hamgkia]

The Bobal tool is a volume-based wave analyzer designed to highlight the effort behind price movement within trend waves. It is built with a focus on clarity, speed of response, and a Wyckoff-inspired philosophy, where volume and trend direction are deeply intertwined.

This script offers a unique visualization of directional volume flow — up or down — in clearly segmented waves, allowing traders to assess who is in control and how strong their effort is. It does this by calculating dynamic trend waves, accumulating volume within those waves, and comparing volume to volatility for normalization.

🔶 WHAT'S INCLUDED

• Detects directional waves based on your selected moving average (SMA, EMA, WMA, or HMA).
  
• Accumulates volume within each wave, creating a distinct "volume block" per wave.
  
• Normalizes volume by ATR (optional) to adjust for current market volatility.
  
• Applies a power function to volume strength for dynamic contrast (stronger waves stand out visually).
  
• Plots volume histograms in real-time: green/orange for up waves, red/fuchsia for down waves.
  
• Optional - displays trend strength background based on recent price expansion vs ATR.
  

🔷 HOW IT WORKS

Wave Definition

A wave is defined as a sequence of bars moving in the same direction based on a selected moving average:
If the MA rises → uptrend wave
If the MA falls → downtrend wave

Wave resets on direction change.

Volume Accumulation

Volume is accumulated within each wave, starting fresh at the beginning of each new wave. This clean segmentation reveals whether the current wave is attracting participation (volume).

Normalization (Optional)

Volume can be normalized by the ATR (Average True Range) to account for volatility differences across symbols and timeframes. This makes comparisons more meaningful.

Strength Calculation

Volume strength is calculated by comparing current wave volume to the maximum over a recent period (default: 50 bars), and applying a pow() function for expressive scaling. This emphasizes high-effort waves while de-emphasizing noise.

🔶 USAGE

A new wave starts when the selected MA (SMA, EMA, WMA, HMA) changes direction.

Read the Strength of the Current Wave

🟩 — strong up
🟧 — weak up
🟪 — weak down
🟥 — strong down

Look for these setups

• 📉 Strong down wave 🟥 followed by weak up wave 🟧 — possible lower high, selling may resume.
  
• 📈 Strong up wave 🟩 followed by weak down wave 🟪 — possible bullish absorption, look for long setups.
  
• Wave is long, but volume fades (bars shrink) — trend may be slowing, consider tightening stops or avoiding late entries.
  
• Trend is increasing, volumes are growing — potential entry points.
  

Use Background Strength for Context

🟩 — bright green — strong bullish
🟥 — bright red — strong bearish
Any dim or translucent color — no clear trend

What NOT to do

Don’t enter blindly on volume spikes — check direction and trend background first.
Don’t treat every strong bar as a signal — look for sequences and transitions, not isolated bars.

Ideal Use Cases

Confirming trend strength before entry.
Avoiding fakeouts in low-volume waves.
Spotting transitions in buyer/seller dominance.
Reading market participation in real time.