WaveTrend 3D for Multispeed Oscillator and Divergence Analysis

Summary

WaveTrend 3D is a redesigned WaveTrend-style indicator intended to address unbounded extremes, whipsaw, and limited timeframe context. It produces fast, normal, and slow oscillator views, with configurable smoothing and an optional mirrored display for pattern and cycle analysis. The design also supports kernel-based smoothing and regression estimates, alongside overbought and oversold zones. The author describes the zones around the normal oscillator’s positive and negative half levels as useful reference points.

Potential pivots are marked by fast and normal oscillator crossovers, while smaller follow-on waves after larger ones can serve as divergence cues. Multi-timeframe readings are presented as a way to add trend context, and configurable wave-size and distance criteria govern trigger-wave detection. These are indicator interpretations rather than tested entry rules: the document offers no performance results or validation of its assumptions about price distributions. Signals can be sensitive to smoothing, thresholds, and timeframe choices, so the plots should be treated as analytical aids rather than evidence of a reliable forecast.

Key ideas

• The indicator combines fast, normal, and slow oscillator speeds to compare signal behavior at different scales.
• Overbought and oversold zones use configurable levels, with the half-levels offered as convenient references.
• Oscillator crossovers identify potential pivots, while smaller follow-on waves can suggest divergence setups.
• Kernel estimates and optional smoothing aim to reduce noise, and mirrored mode supports visual cycle analysis.
• The document describes features and interpretations but supplies no backtest evidence or predictive validation.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.