What it does
The Wave Trend Oscillator smooths the difference between price and its EMA, normalizes it by average deviation, and smooths again to produce a wave-like momentum line plus a short-average signal line. The result oscillates around zero with commonly watched bands near +/-60 and +/-53. It behaves like a smoother, more cyclical cousin of the stochastic.
Typeoscillatorseparate pane
How to add it
Click Indicators (ƒx) in the header.
Search “Wave Trend Oscillator” and click the result.
Hover its legend row and click the gear to open settings.
How traders use it
- Crosses of the main line below its signal line above +60 are classic sell setups; crosses up from below -60 are classic buy setups.
- Zero-line position gives bias: above zero favors longs, below zero favors shorts.
- Divergence between price highs/lows and wave trend peaks is one of its strongest signals, especially from the overbought/oversold bands.
- In a strong trend, take only the signals in the trend direction (e.g., only oversold crosses up in an uptrend) and treat opposite signals as pullback exits.
- Pair with volume or a trend filter, since band touches alone fire too often in trending markets.
Inputs
| Input | Type | Default | Range / Options |
|---|---|---|---|
| Channel Length | number | 10 | 1–50 |
| Average Length | number | 21 | 1–100 |
| Overbought | number | 60 | 0–100 |
| Oversold | number | -60 | -100–0 |
Plots & styling
| Plot | Style | Default color |
|---|---|---|
| WT1 | line | #cddc39 |
| WT2 | line | #ff9800 |
Every plot's color, line width and visibility can be changed on the Style tab. Precision (default 2 decimals), price-scale labels and status-line values are configurable at the bottom of the Style tab.
Tips
- Reference levels (where the study has them) are editable — tune them to the instrument you're trading.
- Hide the study from the legend eye instead of removing it when you only want it out of the way temporarily.
- Merge multiple oscillators into one pane from the legend ⋯ menu to compare them on a shared axis.
Watch out for
- Like all oscillators it can stay pinned beyond its bands during strong trends, punishing early counter-trend entries.
- The heavy smoothing introduces lag, so signals near sharp V-reversals arrive late.