WaveTrend

Features

• Configurable cross signals: Strong (extreme zones only), All, or None
• Divergence detection — regular and hidden, bullish and bearish
• Optional price-chart overlay with Top / Middle / Bottom placement (off by default)
• Optional Compare Symbol — intermarket WaveTrend zone as a dashboard row (off by default)
• Analytics dashboard with composite bias score
• Extension A — Overextension duration
• Extension B — Slope quality filter
• Extension C — Zone persistence
• Extension D — Wave anatomy

Core Engine

The oscillator is a standard WaveTrend calculation:

esa    = EMA(hlc3, channelLength)
d      = EMA(|hlc3 − esa|, channelLength)
ci     = (hlc3 − esa) / (0.015 × d)
wtOsc  = EMA(ci, avgLength)
wtSig  = SMA(wtOsc, sigLength)

Cross signals fire when wtOsc crosses wtSig. Signal strength is classified by the oscillator’s position relative to the band thresholds:

Signal	Condition
Strong	Cross inside OB/OS extreme zone
Regular	Cross between zero and the threshold
Weak	Cross above/below zero (mid-zone)

Extensions

A — Overextension Duration

Tracks consecutive bars inside the OB or OS zone. When the count meets the configured threshold, weak and regular crosses are suppressed to avoid chasing whipsaw exits during a sustained trend. Strong crosses (deep in the extreme zone) are never suppressed. The bar count and suppression state are shown in the dashboard row “Ext. Duration” (⚑ marks an active suppression).

B — Slope Quality Filter

Measures the rate of change of wtOsc over a configurable lookback (slopeLen bars). A flattening slope inside an OB/OS zone indicates exhaustion and strengthens the case for a reversal. A still-rising slope in OB suggests the trend is extending, not reversing. Slope context is appended to strong cross tooltips and shown in the “Slope” dashboard row.

C — Zone Persistence

Counts consecutive bars with wtOsc above or below zero. When the count reaches the configured minimum, a “Sustained Bull / Bear” signal is shown in the dashboard. This identifies wave-riding conditions where counter-trend signals should be discounted.

D — Wave Anatomy

Three metrics that describe where a wave is in its lifecycle, independent of timeframe:

Percentile — ta.percentrank(wtOsc, N) gives the oscillator’s position within its own recent distribution (0–100). A value at 90% means the oscillator is near its highest level in the last N bars — historically extreme, regardless of whether it has crossed a fixed band. This makes “how much room is left” measurable.

Wave Structure — detects pivot highs and lows in wtOsc itself (not price) and compares consecutive peaks and troughs. Rising peaks + rising troughs = wave accelerating. Falling peaks = wave fading even if still in OB territory. This tells you whether the current wave is strengthening or losing steam.

Correction — measures how far the current wtOsc value has dropped from the last confirmed oscillator peak, expressed as a percentage of the full wave amplitude (trough-to-peak range). Values:

• 0% = currently at the peak (wave intact)
• < threshold = sub-wave, pullback within the trend
• ≥ threshold (⚑) = correction is deep, wave may be ending
• ≥ 100% = wave fully retraced, structure broken

Only valid when the last trough preceded the last peak (a complete trough → peak cycle has formed). Shows — otherwise.

Chart Overlay (optional)

Projects wtOsc, wtSig, and the histogram directly onto the price panel — the classic on-chart WaveTrend visual, ported and bug-fixed rather than just documented. Off by default; purely cosmetic, reads the same wtOsc/wtSig series used for signals but has no effect on them.

• Placement — Top (above price), Middle (overlaps price), Bottom (below price)
• Height — vertical size of the projection relative to the visible price range
• Vertical Offset — Top/Bottom only, distance from price
• Display Length — bars drawn (capped at 200, not the source’s 250, to leave headroom under the shared 500-line budget alongside divergence lines)
• Highlight — fills the area between oscillator and signal lines with the leading-side color

Redrawn only on barstate.islast via a delete-and-rebuild array pattern (line/box/linefill), matching the source’s performance approach.

Compare Symbol (optional)

Reports the WaveTrend zone (OB / OS / Bull / Bear) of a second symbol (default BINANCE:BTCUSDT) as a dashboard row. Off by default, informational only — does not gate or filter signals.

Deliberately not a port of the source’s “Compare Symbol” feature: that duplicates the full WT engine and draws a second, parallel set of cross labels on the chart. This reuses the existing f_getWtOscHTF helper (already built for the HTF Trend Filter, computing wtOsc only) against a different symbol instead of a different timeframe, and surfaces the result as one dashboard cell — no duplicated engine, no extra chart clutter.

The compare symbol has its own session and holidays, so there are bars where it has no data (compareWtOsc is na). The dashboard row shows — in that case rather than a fabricated OB/OS/Bull/Bear reading.

Volume Conviction Gate (optional)

The optional “Gate: Volume Conviction” (External Confirmations group, off by default) requires above-average volume on the cross bar. It only has a real effect when the instrument reports actual trade volume (syminfo.volumetype = base/quote) — on tick-volume or n/a symbols it degrades to pass-through so it can’t silently gate on tick-count noise.

Dashboard

Row	Description
Oscillator	Raw wtOsc value
Signal	wtSig value
Zone	Overbought / Oversold / Bullish / Bearish
Momentum	Slope direction × oscillator/signal alignment
Cross	Latest cross direction with decaying state
Divergence	Regular / hidden bullish or bearish
Regime	Bull Trend / Bear Trend / Transition (spread-based)
Extreme	OB/OS warning
Ext. Duration	Extension A: bars in zone + suppression flag
Slope	Extension B: oscillator velocity
Sustained	Extension C: bars above/below zero
Percentile	Extension D: oscillator percentile rank in recent history
Wave	Extension D: peak/trough structure (accelerating / fading)
Correction	Extension D: pullback depth as % of last wave amplitude
Bias	Composite score across all dimensions (with confidence %)
Compare	Optional: WaveTrend zone of a second symbol (OB / OS / Bull / Bear)

Bug Fixes vs. Source

• crossState and divState moved to top-level scope so [1] references carry correctly across real-time bars (were previously inside if barstate.islast, resetting each bar)
• divState changed to float so the × 0.8 decay actually reduces the value (integer math.round was freezing at 2)
• Histogram in Middle overlay mode now uses the zero-line level as its baseline instead of the bottom price edge, aligning histogram bars with the projected oscillator instead of floating disconnected from it
• Dropped the source’s unused f_drawOnlyLabelX wrapper and its three color themes — this file’s own cross-signal label styling and colorOsc/colorSignal palette already cover that, so the overlay just reuses them instead of adding a second, redundant color system
• Overlay inputs use an overlay* prefix (overlayPlacement, overlayHeight, …) instead of the source’s bare osc*/color* names, which collided with this file’s own wtOsc/colorOsc engine variables