What it is
The WaveTrend Oscillator is a popular momentum-based indicator on TradingView. It helps traders identify potential trend reversals and overbought or oversold market conditions by analyzing price data.
How it works
This indicator uses a combination of moving averages and channel calculations. It smooths price action to filter out noise, providing two lines—the WaveTrend 1 and WaveTrend 2—that oscillate around zero.
Trading signals
- Buy Signal: Occurs when the blue line crosses above the red line in the oversold zone.
- Sell Signal: Occurs when the blue line crosses below the red line in the overbought zone.
Basic settings
The default settings typically include a channel length of 10 and an average length of 21. Users can adjust these parameters to suit different timeframes, such as scalping or swing trading. Always remember that this content is for educational purposes only, not financial advice.
