ZenAlgo - Waves Indicator
Waves combines a WaveTrend-style oscillator, MoneyFlow, divergences, an extra moving average, and multi-timeframe context. Use it to judge momentum direction, identify stretched conditions, and spot disagreement between price and the oscillators.
How to read it
- Read the Wave and signal line first: their direction and crosses describe momentum.
- Check MoneyFlow above or below zero to see whether flow supports the move.
- Treat overbought/oversold signals as stretched conditions, not automatic reversals.
- Use divergences and the extra MA as confirmation, then compare the current timeframe with the MTF table.
Do not try to act on every marker. Waves is easiest to read when you first decide whether momentum and MoneyFlow agree, then use symbols to explain changes in that relationship.
Lines, symbols, and table values
| Visual | Meaning |
|---|---|
| Wave and signal line | Momentum and its smoothed reference |
| MoneyFlow line/histogram and bottom square | Positive or negative flow and its current state |
| Yellow / magenta circles | Buy in oversold / sell in overbought condition |
| White/yellow circles | All buy/sell crosses when the broader filter is disabled |
R / H labels | Regular / hidden divergence on Wave or MoneyFlow |
| Small blue / white diamond | Bullish / bearish continuation |
| Larger lower / upper diamond | Bullish / bearish crossover |
| Green triangle / red triangle | Opposite-direction cross without EMA confirmation |
| Green X / red X | Opposite-direction cross with EMA confirmation |
The MTF table shows TF, Wave, Money, and Extra MA for 1m, 5m, 15m, 1h, 4h, and 1D. The trend table summarizes MoneyFlow, WT, Extra MA, and the final combined trend. The state-percentage table shows how often historical bars occupied each heat/cold state.
Alerts
Waves provides four built-in alerts:
| Alert | Meaning |
|---|---|
| Hot Sell | The oscillator reaches the configured hot sell condition |
| Cold Buy | The oscillator reaches the configured cold buy condition |
| Red Cross with EMA | Bearish opposite cross confirmed by the EMA filter |
| Green Cross with EMA | Bullish opposite cross confirmed by the EMA filter |
Divergence labels, ordinary crossover diamonds, continuation diamonds, and triangles are visual only.
Detailed features
Divergences
The Divergence feature marks disagreement between price and the Wave or MoneyFlow readings. Divergence does not predict the exact reversal candle; it shows that the internal momentum of a move is no longer matching price in the same way.
Signals
Waves uses several markers to make changes in momentum easier to notice. They include crossovers, overbought/oversold conditions, continuation markers, and opposite-direction signals. None of them should be read without the Wave, MoneyFlow, and price context around them.
Symbols
Waves contains several symbols, but each belongs to one of three ideas: momentum crosses, divergence, or agreement with an additional filter. Use this page as a legend when a marker appears.
Use Cases
This page shows how to turn the Waves components into a repeatable reading process. The examples are scenarios to inspect, not instructions to enter immediately.
Other Indicators
Waves includes several supporting components that explain the main oscillator from a different angle. They are most useful as context for the Wave and signal line rather than as separate signals.