Market Waves [Smart Trend & Signals]

Market Waves [Smart Trend & Signals]
Overview
Market Waves is a comprehensive technical analysis tool designed to identify market trends with minimal lag while filtering out noise. By combining a modified Hull Moving Average (HMA) with Volatility Bands (ATR), this indicator provides a clear visual representation of market direction, entry signals, and automated Take Profit targets.
Key Features
1. Low-Lag Trend Detection
The core of this indicator uses a custom HMA variation to smooth out price action without the delay common in standard moving averages.
• Bullish Trend: The trend ribbon turns Teal when price breaks above the lower volatility band.
• Bearish Trend: The trend ribbon turns Red when price breaks below the upper volatility band.
2. Smart Signals & Power Filter
The indicator generates two types of signals to help you gauge entry quality:
• Standard Signals (BUY / SELL): Generated purely on trend reversals. Good for early entries.
• Power Signals (BUY+ / SELL+): These are high-probability setups that pass a multi-factor filter:
• Trend Confirmation: The primary trend must flip.
• RSI Momentum: RSI must be above 50 (for Buy) or below 50 (for Sell).
• Volume Spike: Volume must exceed the 20-period average (optional in settings).
3. Automated Take Profit Targets
Upon every new signal, the indicator automatically projects three Take Profit levels based on market volatility (ATR) at the moment of entry:
• TP1: Conservative target (1x Risk).
• TP2: Moderate target (2x Risk).
• MAX PROFIT: Aggressive target (4x Risk).
4. Accumulation Bar Coloring
Candles are colored to reflect the true strength of the move:
• Teal/Red: Strong trend active.
• Gray: Accumulation or consolidation phase. This helps traders avoid chopping markets or weak signals.
5. Confidence Score
A dynamic percentage (50% - 99%) is displayed above signals, calculated based on the steepness and momentum of the wave change, giving you an instant metric of the trend's initial strength.
How to Use
1. Identify Trend: Look at the colored ribbon. Do not trade against the ribbon color.
2. Wait for Signals: Look for "BUY" or "SELL" labels. For higher accuracy, wait for the "+" signals (e.g., "BUY+").
3. Confirm with Color: Ensure the bar color is not Gray (Weak/Accumulation). A Teal bar confirms a Buy; a Red bar confirms a Sell.
4. Manage Trade: Use the trend ribbon as a trailing stop-loss and the projected TP lines for exiting positions.
Settings
• Wave Length: Adjusts the smoothness of the trend (Default: 24).
• Sensitivity Factor: Multiplier for the ATR bands. Higher values reduce false signals but may delay entry (Default: 2.0).
• Show Signals/TP: Toggles for visual elements to keep the chart clean.