WaveTrend with Crosses

WaveTrend with Crosses (Inspired by LazyBear)

A faithful Indie conversion of LazyBear's classic WaveTrend Oscillator with Crosses — one of the most widely used momentum indicators in crypto and FX trading. Built for traders who want clean, actionable reversal signals without the noise of stock RSI or MACD setups.

What it does

WaveTrend is a smoothed momentum oscillator derived from the Commodity Channel Index family. It tracks how far price is stretched from its average and double-smooths the result with two EMAs, producing a fluid line that oscillates around zero. When the fast line (WT1) crosses the slow signal line (WT2) inside the overbought (+53/+60) or oversold (−53/−60) zones, the indicator flags a high-probability momentum shift.

This port preserves every visual cue of the original PineScript:

• WT1 (green) and WT2 (red) oscillator lines
• WT1 − WT2 spread rendered as a translucent blue area for momentum strength
• Stacked circle markers on every crossover (black outer ring + direction-colored inner dot)
• Bar coloring on the price chart — aqua for bearish crosses, yellow for bullish crosses
• Static overbought/oversold levels at ±53 and ±60

Best use cases

• Reversal trading at extremes — wait for crosses inside the OB/OS zones rather than acting on every signal
• Divergence spotting — classic and hidden divergences between WT1 and price
• Trend confirmation — combine with EMA ribbons, VWAP, or supertrend for filtered entries
• Scalping crypto and FX — works exceptionally well on 5m–1h timeframes thanks to its smoothing
• Swing entries on 4h and daily — extreme readings on higher timeframes are notoriously reliable

Inputs

Channel Length (n1) — default 10. EMA length for the inner CCI smoothing.

Average Length (n2) — default 21. EMA length applied to the channel index.

Source — default HLC3 (typical price). Fully configurable to any standard price source: open, high, low, close, HL2, OHLC4, etc.

How to read the signals

A cross above WT2 in the oversold zone (below −53) is a strong long signal. A cross below WT2 in the overbought zone (above +53) is a strong short signal. Crosses in the neutral zone are weaker and best used only as trend continuation filters. The bar coloring on the main chart makes signals visible without leaving the price pane.

Credits

Original PineScript algorithm by LazyBear. This is a 1:1 logical port to Indie. All credit for the underlying math goes to the original author.