WaveTrend is a modular oscillator (lower panel) designed to read the market from 4 layers:
Hyper Wave (main line): Direction and "pressure" (regime changes)
Money Flow (histogram): Buying/selling flow and its intensity
Signals & Divergences: Classic divergences + hidden divergences + status + TP signals + reversal points
Reversal Factor: Additional reversal detector (support/resistance type points within the oscillator)
Note
WaveTrend is not used to "pick the best timeframe" but to read coherence between structures: On higher timeframes you see structure (regime, larger divergences, phases). On mid timeframes you see construction (pullbacks, absorption, transition). On lower timeframes you see execution (timing and micro-structure).
Warning
Do not trade reversals based only on Hyper Wave color — always confirm with Money Flow or divergence. Do not ignore the Status Line — if it shows 0/3 or 1/3, the setup is weak. Do not chase TP signals in isolation — they mark exhaustion zones, not guaranteed turns. Do not use hidden divergences as primary entries — they are continuation signals, not reversals.
What it does
Two smoothed lines that blend momentum and flow. The color changes when the relationship between the internal curves shifts.
Teal dominant: Bullish bias in the oscillator
Purple dominant: Bearish bias in the oscillator
Near zero: Equilibrium / range / transition
Extremes: Potential exhaustion (context, not entry)
How to use it
Use color as a directional filter: only take longs when teal, shorts when purple
Crosses near extremes carry more weight than crosses near zero
Combine with Money Flow for confirmation: aligned = high conviction, divergent = caution
Setting
Lowe Values
Higher Values
Length
Faster, more sensitive
Slower, more filtered
Smooth
More reactive but noisier
Cleaner line, slower reaction
What it does
Histogram that measures real buying vs selling pressure. Positive = buyers in control. Negative = sellers in control.
How to use it
Aligned (same direction as HW) = high conviction
Divergent (opposite to HW) = fragile move, prepare for reversal or pullback
Note
Money Flow often changes sign before Hyper Wave changes color. Use it as an early warning of regime shifts.
HyperWave
MoneyFlow
Meaning
Teal
Positive
Aligned bullish impulse
Teal
Negative
Fragile rally — pullback possible
Purple
Negative
Bearish continuation probable
Purple
Positive
Fragile decline — bounce possible
How to use it
As confirmation within a relevant zone on the price chart (supports, resistances, confluences).
Much stronger when it coincides with pressure releasing or with any of the Oscillator Pro divergences.
Avoid using it in structureless markets (chop).
What it does
Group of 6 sub-features that detect divergences, trend scoring, exit timing, and reversal points within the oscillator.
What it does
White lines on the oscillator marking disagreements between price and momentum.
Bullish divergence: selling losing strength (price lower low, oscillator higher low)
Bearish divergence: buying losing strength (price higher high, oscillator lower high)
How to use it
Best at oscillator extremes and near structural levels
Confirms deterioration, not guaranteed reversal
Strongest when combined with Reversal Points or Money Flow sign change
What it does
Detects continuation signals. The pullback resets momentum but price holds structure — probable continuation in the same direction.
How to use it
Re-entries in the direction of the trend after a pullback
Useful on mid timeframes to confirm that the correction is over
Note
Hidden divergences are the opposite of regular divergences. They confirm trend strength, not weakness.
What it does
Thin band showing a 3-condition scoring system that summarizes the oscillator's internal state.
How to use it
Use as a directional filter: favorable terrain or not
3/3 or 0/3 = high conviction. 2/3 or 1/3 = mixed, requires extra confirmation
Score
Color
Meaning
3/3
Full teal
Strong bullish — all conditions aligned
2/3
Light teal
Leaning bullish
1/3
Light purple
Leaning bearish
0/3
Full purple
Strong bearish — all conditions aligned
What it does
Triangles at +/-120 on the oscillator marking exit zones when momentum decelerates at extremes. 10-bar cooldown between signals.
Purple triangle down (at top): consider TP on longs
Teal triangle up (at bottom): consider TP on shorts
How to use it
Management tool for partial closes, not an entry trigger
Strongest when it coincides with a structural level or a divergence
What it does
Circles on the oscillator at color change zones marking internal regime shifts.
Large circles (thick): Deep extreme reversal — higher weight
Small circles (thin): Shallow reversal — lower conviction alone
How to use it
Use as timing confirmation alongside divergence or Money Flow sign change
Large circles at extremes = highest probability of real turn
What it does
Toggle that cleans up old or invalidated divergence lines to keep the panel clean. No trading function — purely visual maintenance.
What it does
Independent reversal detector. Dots at +120 (resistance) and -120 (support) within the oscillator.
How to use it
Use dots as timing confirmation at structural zones
Most effective when aligned with Hyper Wave color change or a divergence
Factor
Behavior
Best For
1-3
More sensitive, more signals
Scalping, low TFs
4-6
Balanced
Day trading (recommended)
7-10
More filtered, fewer but stronger
Swing, high TFs
Note
These are momentum-based micro-alerts, not classical price S/R levels.
1. Activate Hyper Wave + Money Flow for context (bias + flow)
2. Add Status Line as quick filter (3/3 alignment or not)
3. Use Divergence / Hidden Divergence to detect: probable reversal (classic) or continuation after pullback (hidden)
4. Use Reversal Points / Reversal Factor for timing (local turn confirmation)
5. Use TP Signals for management (partial closes at extremes)
Last updated on
March
25,
2026