WaveTrend-CVD [SolQuant]

The WaveTrend-CVD [SolQuant] indicator combines a multi-timeframe WaveTrend oscillator with a scaled Cumulative Volume Delta (CVD) Z-Score overlay. It displays momentum and volume-delta analysis in a single pane, identifying overbought and oversold conditions while tracking buying and selling pressure through CVD. A combined signal system highlights high-probability reversal setups when WaveTrend crossovers coincide with CVD climax events.


█ USAGE

Reading WaveTrend Signals
The WaveTrend oscillator displays two lines (WT1 and WT2) that oscillate between approximately +100 and -100. When both lines enter the overbought zone (above +60), the market is overextended to the upside. When they enter the oversold zone (below -60), the market is overextended to the downside. WT1 crossing WT2 within these extreme zones generates directional signals.

Higher timeframe oscillators (5-minute, 15-minute, 1-hour) can be displayed simultaneously. Each is automatically hidden when the chart timeframe exceeds it, preventing misleading data.

Reading CVD Z-Score
The CVD Z-Score line measures cumulative buying versus selling pressure, normalized as a statistical z-score and scaled to fit the WaveTrend range. A rising CVD line indicates net buying pressure is increasing relative to its recent history; a falling line indicates net selling pressure. The default scale factor of 30 maps a z-score of ±2.0 to ±60, aligning with the WaveTrend overbought/oversold levels.

Climax Diamonds
Diamond markers appear when the CVD Z-Score first enters an extreme zone (above +2.0 or below -2.0). These climax events indicate a potential exhaustion point where buying or selling pressure has reached a statistical extreme. Diamonds can be displayed independently on the oscillator pane and the main chart.

Alignment Stars
Star markers (★) appear on the main chart when the current timeframe, 15-minute, and 1-hour WaveTrend oscillators are simultaneously in overbought or oversold territory. This multi-timeframe alignment signals a stronger potential reversal, as the market has reached an extreme across multiple time horizons.

W+CVD Combo Signals
Large triangle markers appear when a WaveTrend crossover after an extreme zone coincides with a CVD climax diamond within the last 5 candles. This combination pairs momentum reversal (WaveTrend) with volume exhaustion (CVD), identifying higher-conviction setups. When a combo signal fires, the smaller crossover triangle is suppressed to keep the chart clean.

Auto-Hide Logic
Higher timeframe oscillator lines are automatically hidden when the chart timeframe exceeds them. For example, on a 15-minute chart, the 5-minute oscillator is hidden since its data would be less meaningful at that resolution.


█ DETAILS

WaveTrend Calculation
The WaveTrend oscillator is calculated in three steps:
1 — An EMA of the typical price (HLC3) is computed over the channel length
2 — The absolute deviation from this EMA is smoothed with another EMA
3 — The normalized difference (CI) is smoothed with an EMA of the average length to produce WT1, and a 4-period SMA of WT1 produces WT2

For each higher timeframe, the full calculation is performed on that timeframe's data using request.security(), then both WT1 and WT2 values are brought down to the chart timeframe. Optional smoothing (SMA, EMA, or Double EMA) can be applied to higher timeframe lines for cleaner visualization.

CVD Z-Score Calculation
Cumulative Volume Delta is built bar-by-bar: bullish bars (close > open) add their volume, bearish bars (close < open) subtract it. The z-score normalizes this cumulative value by subtracting its moving average and dividing by its standard deviation over the lookback period. The result is smoothed with an EMA and scaled by a configurable factor (default: 30) to fit the WaveTrend range, then clamped to ±100.

Efficiency Analysis
The dashboard includes an efficiency metric measuring the ratio of price movement to CVD movement over the last 5 bars. High efficiency ("Breakout") indicates price is moving significantly relative to volume delta. Low efficiency ("Churn") indicates volume delta is active but price is not responding — potential absorption or distribution.

Combined Signal Logic
The W+CVD combo signal requires two conditions to fire simultaneously: a WaveTrend WT1/WT2 crossover that occurs after the oscillator has been in an extreme zone, and a CVD climax diamond appearing within the last 5 candles. Bullish combos pair bullish crossovers with oversold CVD climax events; bearish combos pair bearish crossovers with overbought CVD climax events.


█ SETTINGS

Main Chart Signals
• Master Toggle: Enable or disable all main chart overlay signals.
• Multi-TF Alignment Stars: Stars when Current + 15min + 1hr align in extreme zones.
• W Crossover Signals: Tiny triangles on WaveTrend crossovers after extreme zones.
• W+CVD Combo Signals: Large triangles when crossover coincides with recent CVD climax.
• 1hr Extreme Zone Triangles: Triangles when the 1-hour timeframe enters extreme zones.
• CVD Climax Diamonds: Diamonds on the main chart at CVD extreme zone entries.
• Candle Coloring: Color candles based on multi-timeframe WaveTrend alignment.

WaveTrend Settings
• Channel Length: EMA period for the price channel (default: 10).
• Average Length: EMA period for final smoothing (default: 21).
• Overbought / Oversold Levels: Two tiers — Level 1 (±60) for extreme zones and Level 2 (±53) for early warnings.

CVD Settings
• Z-Score Lookback Period: SMA/StDev period for z-score normalization (default: 20).
• Smoothing Length: EMA period applied to the raw z-score (default: 5).
• CVD Scale Factor: Multiplier to map z-score into the WaveTrend range (default: 30).
• Show CVD Line: Toggle the CVD line on the oscillator pane.
• OI Ticker: Symbol for Open Interest data used in efficiency analysis.

CVD Signals
• Climax Diamonds on Oscillator: Diamonds on the oscillator pane at CVD extreme entries.

Multi-Timeframe
• Show 5m / 15m / 1hr: Toggle each higher timeframe oscillator.
• Smooth Higher Timeframe Waves: Apply smoothing to higher timeframe lines.
• Smoothing Length / Type: Configure smoothing parameters (SMA, EMA, or Double EMA).

Dashboard
• Show Dashboard: Toggle the combined multi-metric dashboard.
• Position / Size: Configure dashboard placement and text size.
• The dashboard displays WaveTrend values per timeframe (with trend arrows, extreme zone dots, and WT values) and CVD metrics (Z-Score value, Efficiency status, and Phase detection).


This indicator combines momentum and volume-delta analysis and does not constitute financial advice. Overbought and oversold conditions do not guarantee reversals. CVD climax events indicate statistical extremes in volume pressure that may not result in price reversals. Past performance does not guarantee future results.