OPEN-SOURCE SCRIPT
Wave Trend Oscillator (LazyBear) / Owl of Profit remake
Wave Trend Oscillator Strategy (by LazyBear)
This strategy leverages the powerful WaveTrend Oscillator developed by LazyBear to identify overbought and oversold market conditions, providing dynamic signals for trend-based trading.
Features
WaveTrend Oscillator (WT):
Calculates two smoothed WaveTrend lines (WT1 and WT2) for visualizing momentum.
Uses channel and average lengths to adjust sensitivity.
Overbought/Oversold Levels:
Predefined levels for detecting extreme price conditions:
Overbought: 60, 53.
Oversold: -60, -53.
Fully customizable levels to match different trading preferences.
Color-Coded Visualization:
WT1 (green) and WT2 (red) show smoothed momentum oscillations.
Area between WT1 and WT2 filled in blue for additional clarity.
Strategy Logic
Long Entry Condition:
WT1 crosses above WT2, indicating a bullish reversal.
WT1 is below the Oversold Level (-60) during the crossover.
Short Entry Condition:
WT1 crosses below WT2, signaling a bearish reversal.
WT1 is above the Overbought Level (60) during the crossover.
Exit Logic:
Positions are automatically closed based on opposing signals.
Customization
Oscillator Lengths:
Channel Length (n1): Default 10.
Average Length (n2): Default 21.
Overbought/Oversold Levels:
Default Levels: 60 (Overbought), -60 (Oversold).
Optional secondary levels for finer adjustments.
Visual Enhancements:
Overlay the oscillator with additional chart elements for trend confirmation.
This strategy is ideal for traders looking to combine momentum analysis with overbought/oversold signals, ensuring precise entries and exits in trending markets.
Visit my website for more tools and strategies: bybitindicators.com
Happy Trading! 😊
This strategy leverages the powerful WaveTrend Oscillator developed by LazyBear to identify overbought and oversold market conditions, providing dynamic signals for trend-based trading.
Features
WaveTrend Oscillator (WT):
Calculates two smoothed WaveTrend lines (WT1 and WT2) for visualizing momentum.
Uses channel and average lengths to adjust sensitivity.
Overbought/Oversold Levels:
Predefined levels for detecting extreme price conditions:
Overbought: 60, 53.
Oversold: -60, -53.
Fully customizable levels to match different trading preferences.
Color-Coded Visualization:
WT1 (green) and WT2 (red) show smoothed momentum oscillations.
Area between WT1 and WT2 filled in blue for additional clarity.
Strategy Logic
Long Entry Condition:
WT1 crosses above WT2, indicating a bullish reversal.
WT1 is below the Oversold Level (-60) during the crossover.
Short Entry Condition:
WT1 crosses below WT2, signaling a bearish reversal.
WT1 is above the Overbought Level (60) during the crossover.
Exit Logic:
Positions are automatically closed based on opposing signals.
Customization
Oscillator Lengths:
Channel Length (n1): Default 10.
Average Length (n2): Default 21.
Overbought/Oversold Levels:
Default Levels: 60 (Overbought), -60 (Oversold).
Optional secondary levels for finer adjustments.
Visual Enhancements:
Overlay the oscillator with additional chart elements for trend confirmation.
This strategy is ideal for traders looking to combine momentum analysis with overbought/oversold signals, ensuring precise entries and exits in trending markets.
Visit my website for more tools and strategies: bybitindicators.com
Happy Trading! 😊
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
Want to use this script on a chart?
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.