Institutional WaveTrend [Div & Confirmed]

Institutional WaveTrend [Div & Confirmed] – Indicator Description
Institutional WaveTrend [Div & Confirmed] is an advanced momentum and divergence indicator based on the WaveTrend oscillator, designed to identify institutional-level turning points, trend continuation signals, and confirmed momentum shifts.
This indicator combines WaveTrend structure, divergence detection, and confirmation logic, making it suitable for both discretionary traders and systematic analysis.
🔹 Core Features
WaveTrend oscillator with dual lines (WT1 / WT2)
Adaptive coloring to visualize momentum direction
Clearly defined Overbought / Oversold zones
Built-in regular and hidden divergence detection
Confirmed signals only on closed candles (non-repainting)
🔹 WaveTrend Structure
WT1: Main momentum line
WT2: Signal / smoothing line
Color changes dynamically based on WT1 vs WT2 relationship
Zero line and ±53 levels help identify momentum regime shifts
🔹 Divergence Detection (Pivot-Based)
The indicator automatically detects divergence using pivot logic:
Bullish Divergence
Regular: Momentum makes a higher low while price makes a lower low
Hidden: Momentum makes a lower low while price makes a higher low
Bearish Divergence
Regular: Momentum makes a lower high while price makes a higher high
Hidden: Momentum makes a higher high while price makes a lower high
Visual elements:
Solid lines → Regular divergence
Dashed lines → Hidden divergence
Labels:
R = Regular divergence
H = Hidden divergence
🔹 Confirmed Signals (●)
Confirmed signals are generated only when all conditions are met:
Confirmed Buy
WT1 crosses above WT2
WT1 is in the oversold zone
Candle is fully confirmed (bar close)
Confirmed Sell
WT1 crosses below WT2
WT1 is in the overbought zone
Candle is fully confirmed (bar close)
Signals are plotted as small dots (●) directly on the oscillator for clarity and minimal chart clutter.
⚠️ These signals are confirmation-based, not predictive.
🔹 Best Use Cases
Detecting institutional accumulation / distribution zones
Momentum-based entry confirmation
Divergence-driven reversal analysis
Trend continuation validation using hidden divergence
Filtering false signals in ranging markets
🔹 Recommended Usage
Use divergences to identify context
Use confirmed dots to time execution
Combine with:
Price action
Support / resistance
Higher timeframe bias
Works effectively on:
FX
Indices
Stocks
Crypto
Gold / Commodities
⚠ Disclaimer
This indicator is for analysis and decision support only.
Always apply proper risk management and confirm signals within your own trading plan.
✅ Ultra-Short Description (1 line)
WaveTrend-based momentum and divergence indicator with confirmed institutional-style signals.
✅ Recommended Categories (TradingView)
Oscillators
Momentum
Trend Analysis